Variable products of Allianz sell briskly

An Allianz employee, right, explains about the Allianz Multiple Variable Universal Whole of Life product to a potential customer in the company’s office in Seoul. / Courtesy of Allianz Korea

By Yoon Ja-young

Two variable whole of life (WoL) products from Allianz Life Insurance, one of the leading global insurers in Korea, have enjoyed growing popularity since their launch in July.

The Seoul-based entity said Thursday that sales of the Allianz Multiple Variable Universal Whole of Life and the Family Love Variable Universal Whole of Life amounted to 3.94 billion won and 1.68 billion won this year in terms of annualized premiums, respectively.

Experts point out that the two products’ performances are outstanding as the insurance industry has suffered from setbacks throughout 2014 amid the lingering economic downturn and the low interest rates.

“It seems that people love the two variable WoL products because they can select the best plan in line with their needs out of many options. Plus, the two intensively cover the death risks before retirement, which we think attracted many,” an Allianz official said.

The multiple WoL offers 13 different death benefit schemes to customers with which they can design the benefit in tandem with their individual financial circumstances and future plans. They can select more details aligning the needs with three different types of benefits ― basic, descending and economic ones.

The descending scheme allows clients to choose the retirement age of 55, 60 and 65 so that the death benefit decreases for the next 10 years by 5 percentage points per annum. After the decade, a half of the benefits would be paid.

The economic one is to make 60, 65 or 70 years for retirement age and get benefits of 30 percent, 50 percent or 70 percent. Instead, it focuses on the coverage before retirement with affordable premiums.

Moreover, a total of 24 different riders can be attached including cancer, accident, hospitalization and surgery. The coverage can be extended to the spouse and children through designing the policy as an all in one.

The family love WoL offers 50 percent of face amount as a death benefit in the case of death before the retirement age of 55, 60 or 65 chosen by the policyholder. At the same time, 1~2 percent of face amount is provided as living support until reaching the retirement age.

With 21 riders, it is also possible for the customers to design various protections. For example, the new medical reimbursement rider, which is renewable, offers the insurance term of up to 100 years, which will help people to prepare for the possibly soaring medical expenses in the late phase of their life.