BNP Paribas Cardif Life Insurance launches ‘Signature CEO Term Life Insurance Plus (NP)’ from general agency channels
BNP Paribas Cardif Life Insurance today announced the launch of ‘Signature CEO Term Life Insurance Plus (NP)’, a coverage plan in case of the absence of CEO.
In the face of persistently high interest rates, corporate credit leverage (corporate credit-to-GDP) reached its highest level ever last year, and the volume of self-employed loans exceeded KRW 1,000 trillion, with delinquency rates rising steeply. With the burden of interest payments on a company’s balance sheet, the unexpected absence of a CEO can lead to a number of risks that threaten the company’s existence. Therefore, it is essential to have safeguards in place to protect against the risks of CEO absence. [YHK1]
‘Signature CEO Term Life Insurance Plus (NP)’ is an incremental product that offers increased amount of benefit as the time passes. The Signature CEO Term Life Insurance Plus (NP) is characterized by the addition of the ‘Insurance Risk Score (IRS) Discount Rider II’ and the ‘Plus Savings Rider’ to the ‘Signature CEO Termlife Insurance’ launched in 2020, which enhances the credit management features as well as the ability to pay and accumulate extra funds that can be utilized when needed in the future. The products are now available on the general agency (GA) channel, partnered with BNP Paribas Cardif Life Insurance.
Subscribers can choose from 4 increasing rate options of 5%, 10%, 15%, 20%, depending on their financial situation, and death benefit increases accordingly 10 years after the subscription date. For example, if a customer subscribed of 5% increasing rate at the age of 40 with maturity age of 90, coverage amount of KRW 100 million, the death benefit increases by 5% annually up to KRW 3 billion.
The ‘IRS Discount Rider II’, which applies a discount rate based on the insured’s insurance risk score index, provides a discount of up to 5% on the main contract premium, and the ‘Plus Saving Rider’ allows customers to save the discounted premium along with the additional premiums paid at a disclosed interest rate, allowing them to utilize their funds more flexibly in the future.
Chul Kwon Choi, Head of General Agency Business at BNP Paribas Cardif Life Insurance, said “Signature CEO Term Life Insurance Plus (NP) is a product that helps CEOs ensure business continuity in the event of an unexpected management absence, allowing them to continue to build on their company’s success. With its incremental structure and enhanced capital utilization, we hope it will help business owners appropriately control the challenges of high interest rates”.
Entry age of ‘(NP) Signature CEO Termlife Insurance’ is from 25 to 70, and payment term options are available for 5/7/10/15/20 years, and whole period. Range of face amount is up to KRW 2 billion, and premium of 40 year-old male for 5% increasing rate is KRW 232,600 (face amount of KRW 100 million, maturity age of 90, whole period, monthly premium frequency).
*Source: Bank of Korea, <Financial Stability Report> (2023.12)