Korea Life Vietnam launch Universal Life Insurance

Date: 2009-11-29 00:54:13

Pave your own way 

Korea Life Vietnam officially launch their Universal Life Insurance Product (ULP) on 01/12/2009. As its Vietnamese name suggests, “An Khang Linh Hoat Tron Doi” (Security, Prosperity & Flexibility for Life), this insurance product allows customers to set up a comprehensive financial plan for future goals while reserving the right to adjust it anytime to fit their changing needs.

The first difference between this product and Endowment products, which currently account for approximately 85% of the in-force insurance policies, is that Korea Life’s ULP provides protection and saving benefits until the customers reach age 99. This product includes two options – “Level Death Benefit” and “Increasing Death Benefit”, whereas the former is most suitable for customers who tend to use this product as a saving vehicle, whilst the latter is best for those who prefer to have comprehensive protection benefits at minimum cost. For example, a 35-year-old male just needs to invest VND 19,600,000 a year to age 60 to be insured at minimum VND 1 billion until age 99. Besides, the customers can also shift from this option to the other and vice versa anytime before attaining age 70 to ensure that they will be best protected at every stage of life.

The second difference is Korea Life’s ULP allows the customers to decide when to pay, how much to pay, how much to be insured and to flexibly change these details at their discretion. As a result, the customers will no longer be concerned about their capacity to pay regular premiums in times of unstable income or financial difficulty. Especially, Korea Life’s ULP also guarantees that, subject to some minimum premium payment requirements, a policy will not lapse during the first 10 years even when the cash value is negative.

As regards saving benefits, Korea Life’s ULP allows the customers to share investment profits generated by the Universal Life Fund whilst making commitment to pay at least 5% pa interest during the first 10 years and 3.5% pa thereafter.

Korea Life’s customers can also use their ULP policy as a “saving account”. In fact, there is no limitation on the number of cash withdrawals from the policy account value. In addition, Korea Life also waives withdrawal charge for the first cash withdrawal in a policy year if the withdrawal amount is up to 20% of the outstanding saving amount. This means the customers can use their insurance policies for short-term financial needs whilst maintaining the same contractual insurance benefits.

Similar to other products offered by Korea Life, this Universal Life Insurance Product also allows the customers’ family members to purchase rider insurance so that the whole family can be protected under one insurance policy at minimum cost.