ABL Life Insurance has introduced a new trust-linked whole life insurance product geared to giving policyholders more flexibility in managing and distributing insurance benefits.
The insurer noted that it has launched the product, which allows both death benefits and paid premiums to be managed through a trust structure.
It is ABL Life’s first trust-linked insurance offering since joining Woori Financial Group, one of the major financial conglomerates in the country, in July.
The new product is designed to return not only the death benefit but also the total amount of premiums paid, helping customers utilise their insurance proceeds more strategically in accordance with their financial plans, according to ABL Life.
The minimum subscription amount is set at KRW30 million (US$21,000), the lowest level eligible for insurance claim trusts, enabling a wider range of customers to take advantage of the programme.
An insurance claim trust is a mechanism in which the death benefit paid by the insurer after the policyholder’s death is managed by a financial institution acting as a trustee.
The funds are then distributed to the designated beneficiaries according to pre-determined conditions.
To be eligible, the policy must provide at least KRW30 million in general death coverage, and the policyholder, insured person, and trustor must be the same individual.
Beneficiaries are limited to immediate family members or spouses, and the policy must have no outstanding loans.
An ABL Life representative said, “By coming up with the insurance claim trust option, we can offer greater flexibility in how death benefits are distributed to family members and provide practical solutions for those concerned about estate management.
“We will continue to build our reputation as a trusted life insurer by developing innovative products that support customers’ comprehensive wealth management and their families’ financial stability,” reported Korea News Plus.