Shinhan Life Insurance Co. saw the sales of its new third-generation life-time annuity insurance product based on a new idea introduced in April last year to reach 67,782 cases as of Dec. 30 last year, creating a storm in the industry, said the company recently. The new life insurance product prepays the annuity payment against the death insurance annuity as collaterals, the company said.
This time, the life insurance firm said it will introduce in the market 'Shinhan THE Gentle Pre-payable Life-Time Insurance product with the premium amount reduced by as much as 25 percent compared to the existing life-time annuity insurance' products, the company said on Jan. 4.
A special feature of the product is that it reflected the scheduled termination rate to the premium calculation to lower the premium. The termination repayment money is lower during the premium payment period, but it will be the same when the termination is completed with the repayment amounting to as large as 30 percent in maximum.
If the premium is calculated the same as the existing similar life-time insurance products, the admission payment would increase as much as 22 percent and give the policyholder a longer guarantee.
For example, if a 40 year old man buys the life-time insurance policy paying 280,000 won in monthly premium, he will get 100 million won on his death on the regular existing life insurance products, but had he bought the low termination repayment 50 percent-type, he would get 122 million won on his death, 22 million won more than he would on the existing life-time life insurance products.
The Shinhan THE Gentle Annuity Pre-payable Life-Time Insurance has three types so that the customers can choose depending on their affordability, including the two low termination repayment type of 50 percent and 70 percent and the general type with 100 percent termination repayment. The premium is the lowest for the 50 percent type.
The life-time insurance product also has the function for prepayment of the death insurance money as the collateral so that the customers can balance the assets at the time of death and the annuity assets.
Shinhan Life Insurance is making preparations for the retirement market, which is growing rapidly due to the aging population, and making an entry into the pension society. In order to practice compassionate finance for customers, it integrated the existing Retirement Planning Center (analysis and research on retirement market) and the BigLife Center (financial planning) in June 2014 and renamed it the Future Design Center. As such, Shinhan Life Insurance became more fitting to the characteristics of the insurance industry by providing information on retirement planning.
As part of this effort, Shinhan Life Insurance is consistently introducing new products that provide retirement preparation plans for the aging society.
Notably, it developed and sold True Shinhan Bridge Pension, which is a bridge pension product that was created in response to the period of no-income from the point of retirement until the date of receiving pension. Shinhan Life Insurance received a positive feedback in that it provided opportunities for preparing the future for customers in their 50s and 60s, an age group that has largely been alienated in insurance contracts. Furthermore, by developing and providing a lifelong variable insurance that guarantees twice the amount of guaranteed assets during the customer’s economically active period and twice the amount of health assets after retirement, it provided a chance for optimal guarantee according to the customer’s stage in life.
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