BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas, today announced that it is offering bancassurance products through a partnership agreement with KB Kookmin Bank (CEO: Lee Kun-ho), one of the largest banks in South Korea.
The latest partnership will see 1,150 nationwide branches of KB Kookmin Bank distribute BNP Paribas Cardif Life Insurance’s ‘(NP) ELS Master Variable Life Insurance’, the insurer’s most representative product for being customer-centric and innovative.
‘(NP) ELS Master VL’ has been receiving increasing attention from investors since its launch in April last year, as it is the nation’s first ELS-specialized insurance that combines the benefits of Equity Linked Securities and variable life insurance. By allowing policyholders to be eligible for tax exemption, the product seeks maximized profit.
The product makes diversified investment in index-type ELS through the ELS Master Equity Index Linked Fund, offering buyers a relatively safer investment than direct investment in equities as well as relatively higher rate of return than the average deposit rate. Moreover, it enhances investment stability by transferring returns to bonds or bond-type funds while automatically re-investing the principal into more ELS, taking away policyholder’s concerns about the investment method.
In other words, policyholders can continue to invest in ELS with just one-time insurance subscription at KB Kookmin Bank, while pursuing profit and being relieved of worries about the tax in the long term. (Tax benefits such as tax exemption are only applicable to policyholders who meet the conditions required by the relevant tax laws).
“Since last year, BNP Paribas Cardif Life Insurance has formed new bancassurance partnerships with two commercial banks, one regional bank, and four securities firms. Compared to the year of 2012, our partnership has doubled,” said Sung Woog Choi, Chief Sales Officer of BNP Paribas Cardif Life Insurance. “We are happy to offer more customer-centric and innovative insurance products to the customers across the country.”
BNP Paribas Cardif Life Insurance now holds bancassurance partnerships with a total of 15 local banks and securities firms in Korea, and offers insurance products through 4,500 branches of its partners nationwide.