Hanwha Life, a life insurance arm of the Hanwha Business Group, has developed a “Hanwha Life e-Jaetekeu Savings Insurance” which guarantees both profitability and safety. Jaetekeu technically means “financial technology,” but also refers to financial investment today.
It is now virtually impossible for anyone to earn profit with ordinary savings products at commercial banks, with their interest rates prevailing at around 1%. It may also be not reasonable to make risk-prone financial investments based on the significantly lowered interest rates. How could we wisely address this financial volatile market and earn profit in a stable basis?'
The newly developed Hanwha Life e-Jaetekeu Savings Insurance may be an answer. It is already drawing good responses from customers, as it ensures both profit and safety at the era of sustained lower interest rates. What are specific reasons behind the success?
First of all, policyholders can be assured up to 3% of interest rates, which affect premiums on policies, much higher than general savings and installment deposits of commercial banks. Moreover, customers are assured management of compound interest rates, something that could benefit only some savings deposits of banks. Of note, the new insurance product is tax-free. “For this reason, our new product may be more appealing to customers who want to prepare tuitions for their college-age children and funds for house purchases or rentals and retirement life,” a company spokesperson said.
“Another significant advantage is that even if the policy contract is terminated, the policyholder will be given 100% principle. As a result, the termination of insurance policies no longer means losses for policyholders,” the spokesman said.
Effective April this year, Hanwha Life Insurance lowered the expense ratio of Hanwha Life e-Jaetekeu Savings Insurance and raised its refund rates which enabled the company to upgrade its competitive advantages. It offers far higher interest rates and return rates in comparison to ordinary savings-type insurance coverage of other life insurers, according to the spokesman.
In case customers pay 300,000 every month in a period of three years, they
shall receive a total of 13,383,196 won each in refund when their contracts are terminated. The refund rate averages 123.9%, compared to 122.5% of other life insurers, he said.
A Hanwha Life Insurance official stressed that he would proudly recommend the new savings-type insurance product to customers who want to save money in the persistent low-interest rate environment. “It guarantees 100% principle plus management of compound interest,” the spokesman said. “It offers both safety and profitability,” he added
Hanwha Life-developed Internet insurance coverage “Onsure” reached 100 trillion won in assets recently. In celebration of this milestone, the company presented various customer events in April. For instance, department store coupons were presented to customers who have joined a variety of insurance coverage, such as pension savings, pension insurance and time insurance policies.