By Yoon Ja-young
Staff Reporter
MetLife is launching a new product, which will help policyholders build assets for the future as well as protect their children from various risks. With this product called the ``Non-participating Kids Plan Variable Universal Life Insurance (VUL),'' both parents and their children are covered by a single policy, and parents also have the option to cover their children only up until the ages of 20 to 27.
With this product, if parents die before their children become 20 to 27 years of age, 50 percent of the insured amount will be paid in a lump-sum and the other 50 percent plus the cash value will be paid in installments each year until the children reach between 20 to 27 years of age depending on the policy extension period.
The product is designed to invest most of the premium deposits in funds for the purpose of helping policyholders build financial resources for their children's future needs such as expenses associated with their education or wedding. The product offers a variety of funds to select from: the bond fund, the value stock fund, the growth stock fund, the American stock fund, the global stock fund, the stock index fund, the Asian stock fund, and the European stock fund. Policyholders can select a fund depending on their preference and change it up to 12 times a year.
Policyholders are also allowed to make premature withdrawals of up to a total of 50 percent of the surrender value, up to twice a month and 12 times a year. Policyholders are required to pay in premium deposits for at least 24 months. Parents with children aged between 0 and 15 are eligible to purchase this product, with the insured amount of between KRW 10 million and KRW 2 billion. Whatever the face value is, the children's protection before conversion age is always on the basis of 10 million won.
Stuart B. Solomon, CEO of MetLife, Korea, said, "This new product represents our continuing efforts to provide VUL type products in Korea. The `Non-participating Kids Plan VUL' will significantly help our policyholders in protecting their children from risks as well as building assets for the future."