New 'Woori WON Stable Whole Life' product debuts

Balance Plan conversion raises withdrawal limit by 10% annually for 10 years

Death benefit grows to sum of coverage amount and total premiums paid for long-term policyholders

[ABL Life Insurance]
[ABL Life Insurance]

ABL Life Insurance, a subsidiary of Woori Financial Group, has launched a whole life insurance product that allows policyholders to withdraw premiums paid or grow their death benefit based on financial needs after completing premium payments.

ABL Life said Monday it released the "(Non-par) Woori WON Stable Whole Life Insurance (Partial Surrender Value Payment Type)." The product is designed to address shifting financial demands at each stage of life and help customers prepare for a stable retirement.

The centerpiece of the product is a "Balance Plan" conversion feature. When policyholders need a lump sum — for retirement living expenses or a child's marriage, for example — they can switch to the Balance Plan, after which the annual withdrawal limit increases by 10 percent of total premiums paid each year for 10 years from the conversion date. Even if the full 100 percent of premiums paid is withdrawn, the original coverage amount at enrollment remains fully guaranteed.

The earliest conversion date depends on the premium payment period. Those on a seven-year payment plan may convert starting on the policy anniversary 10 years after the contract date; 10-year plans become eligible at 12 years; 15-year plans at 15 years; and 20-year plans at 20 years.

Policyholders who do not convert to the Balance Plan and instead maintain their contract over the long term receive the benefits of a stepped-up whole life policy, with the death benefit increasing incrementally. For 10 years from the escalation start date after premium payments are completed, an amount equal to 10 percent of total premiums paid is added to the coverage amount each year. From the policy anniversary 10 years after the escalation start date, the death benefit equals the sum of 100 percent of the coverage amount and 100 percent of total premiums paid.

The eligible enrollment age under standard underwriting is 15 to 60, with variations depending on the payment period. Policyholders may choose from payment periods of seven, 10, 15 or 20 years.

"This product was designed not only to provide death coverage but also to offer customers the option of using their funds for retirement living expenses and other financial needs, allowing them to address diverse financial demands across their life cycle," said Kim Sun-jae, head of ABL Life's product division. "We will continue to establish ourselves as a life insurer that delivers 'A Better Life' through differentiated products that reflect the varied needs of our customers."

Meanwhile, ABL Life has been expanding its lineup of protection-oriented products centered on whole life and health insurance, having released the "(Non-par) Woori WON The Chaeum Whole Life Insurance" and the "(Non-par) Woori WON (3.10.5) Simple Health Insurance" in quick succession last month.


won@heraldcorp.com