BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas, is pleased to announce that it has launched a new variable life insurance product invested in ELS – ‘(NP) ELS Pro VL’ – through its distribution partner, Shinhan Bank, to offer policyholders broader investment choices.
Amid a low interest rate environment, investors’ demand for Equity Linked Securities (ELS) has increased remarkably in the recent years because ELS generally offers a higher rate of return than bank deposits while pursuing investment safer than direct equity investment. Therefore, BNP Paribas Cardif Insurance launches this innovative, customer-oriented insurance product, ‘(NP) ELS Pro VL’, which combines the merits of ELS (namely, medium risk and medium profit) and the merits of insurance product (including tax exemption), to satisfy the rising market needs.
‘(NP) ELS Pro VL’ selectively invests in ELS which seek stability through ELS Pro Stock Index- Linked Funds. Upon redemption, it will identify and invest in additional ELS with similar features as the ones initially invested. Therefore, the policyholders can pursue long-term returns by continuously investing in ELS with a one-off subscription, while enjoying tax exemption which is a key feature of savings insurance products.
Byung Uk Lee, Chief Marketing Officer of BNP Paribas Cardif Life Insurance, said: “BNP Paribas Cardif Life Insurance has always been monitoring the changing market conditions closely and launches new products timely that meet the needs of the customers during different economic cycles. ‘(NP) ELS Pro VL’ helps customers who find it difficult to seek diversified ELS investments to invest more easily in ELS through insurance. This innovative product is especially attractive to those who are looking for long-term asset management.”
The entry age for ‘(NP) ELS Pro VL’ ranges from 15 to 70, and customers can only sign up via single payment. If the premium exceeds KRW 30 million, a 0.7%~1% discount will be applied to the exceeding amount. Policyholders can withdraw the investment without cancelling the policies. They can even convert it into annuity in preparation for retirement, or diversify their investments by transferring the fund to stocks, bonds, MMF funds, etc., based on the market conditions.