ABL launches dollar-denominated pension insurance

ABL Life launched a dollar-denominated pension insurance, through which subscribers pay premiums and receive claims in dollars. / Courtesy of ABL Life

By Kim Bo-eun

ABL Life launched a dollar-denominated pension insurance plan, on the back of the popularity of such products as the dollar appreciates against the won.

Subscribers to the single-premium product can accumulate payout through a fixed interest rate for a period of five or 10 years. The interest rate is fixed when the subscriber signs up for the product.

The five-year product's interest rate is 2.11 percent, and the 10-year product, 2.66 percent, as of August.

The product, based on a monthly premium, applies a credited interest rate of 2.67 percent, with a minimum guarantee rate of 1.5 percent for below 10 years and 0.5 percent for over 10 years.

Subscribers can get bonuses ― a certain percentage of the premium ― if they complete paying premiums or maintain their contracts for extended periods.

Monthly premium product subscribers can get 2 percent of the premium they have paid at the time they have completed paying.

Single premium product subscribers can get up to 2 percent of their lump sum premium.

Subscribers to the single premium product can opt to receive funds each month or every year for up to 10 years, according to their needs.

The product also pays out for claims when the subscriber injures multiple body parts in a single accident during the period the subscriber is paying the premiums.

Customers aged up to 75 can sign up for the product, and will be able to receive pension claims between the ages of 45 and 85.

“We launched a dollar-denominated pension insurance according to the trend of investors diversifying their investments to include those in the safe haven currency of dollars,” an ABL official said.

“The product is competitive in that it offers not only effects of diversifying investments in currencies, but that it provides bonuses and helps subscribers to stably prepare retirement assets.”