Kyobo Life Insurance, Co., the nation’s third largest insurer, launched a product offering monthly annuities for those looking to secure a stable income stream until retirement.
The product, dubbed the Kyobo Premier Variable Whole Life Insurance, differs from other whole life insurance in that it provides monthly annuities for the family even after the subscriber dies. It protects the family against disruptions in their working life at the cost of 1 or 2 more percent more on the subscription fee.
A worker at Kyobo Life introduces its new Kyobo Premier Variable Whole Life Insurance. (Kyobo Life)
“For a subscriber retiring at 65, the product gives about 3 million won ($2,829) per month from the point of subscription. If the subscriber dies at, say, 45, he or she is eligible to receive 300 million won on top of the annuities,” a spokesperson at the insurer said.
“The product is especially good for families with a volatile income stream. We’ve prioritized income stability for the entire family, not just the subscriber,” Jeong Gwan-young, the head of product development team said.
The insurer has been launching a slew of pension products to spearhead the retirement market fast growing with the aging population. It developed the first retirement product in the industry back in 1976 and accrued over 30 years of experience in managing pension products.
Kyobo currently manages 1.43 trillion won of pension assets with about 1 million subscribers, which places company at the second spot in the corporate pension segment.
About 2,800 companies adopted Kyobo’s products for their workers, the company said.
Since designated as an “aging society” by the Organization for Economic Cooperation and Development in 2000, it has been one of the fastest aging societies in the world with the lowest level of birth rate. But its income replacement with pension has been low relative to its peers in the OECD, making whole life insurance a booming sector.
“We will continue to grow as one of the best run pension fund operators in Asia,” a Kyobo official said.
The growth of pension market has been evidenced by the surge in insurer’s premium income in the past year. The combine first-time premium paid by subscribers increased about 40 percent to 13.48 trillion won at life insurers during the fiscal year that ended in March 30, data compiled by the Financial Supervisory Service said.
By Cynthia J. Kim (firstname.lastname@example.org)