BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas, is pleased to announce that it now offers policyholders the opportunity to invest in ELS (Equity Linked Securities) on a monthly basis through its ‘(NP) ELS Master VL (Regular type)’. The product has been available through branch networks of Daegu Bank and KDB Daewoo Securities since May 2, and will be available at Busan Bank from May 12.
BNP Paribas Cardif Life Insurance is the nation’s first insurer to introduce VLs that invest in ELS. The product has been very well received by the market and recorded sales of over KRW 100 billion in the first year since it was launched in 2013. Against the backdrop of the growing demand for ELS-investing VLs, BNP Paribas Cardif Life Insurance has been placing its best efforts to make the product more widely available by launching a regular-type VL which invests in ELS.
The greatest merit of ‘(NP) ELS Master VL (Regular type)’ is that it allows policyholders to invest in ELS without having to come up with a lump sum as it is on a monthly basis. Policyholders can make diversified investment by investing in several ELS every month through the ELS-investing fund. Compared to the single payment-type ELS VL, the regular-type ELS VL has an advantage in hedging risks and seeking a relatively stable profit through continuously investing in up to 60 different ELS with various investment entry time as well as several redemption options.
In addition, policyholders can seek long-term ELS investment without having to worry about renewals or any incidental charges as the result of renewals, because the product will automatically invest in a new ELS upon maturity. Therefore, policyholders can pursue stable profits by continuing to invest in several ELS with just a one-time subscription. Furthermore, policyholders can expect increased profits from their investment as a result of tax exemption should they meet the requirements of the relevant tax laws.
Byung Uk Lee, Chief Marketing Officer of BNP Paribas Cardif Life Insurance, said: “Amid the low interest rate environment, investors’ demand for ELS has steadily increased in the recent years because ELS generally offers a higher rate of return compared to bank deposits while pursuing safer investment than direct equity investment. We have launched the regular-type ELS VL to capitalize on the demand for safer ELS investment than a lump sum investment, while maintaining the merit of tax-exemption. We expect the product will be an opportunity for broader range of customers to invest in ELS, as they can subscribe to the product without having to commit a lump sum upfront.”
The entry age of ‘(NP) ELS Master Savings VL’ is from 15 to 70 with minimum monthly premiums of over KRW 200,000. If the premium exceeds KRW 5 million, a 1% discount will be applied to the exceeding amount. Policyholders can withdraw the investment free of charge without cancelling the policies, or can even convert it into annuity in preparation for retirement, or diversify their investments by transferring the fund to other investment products like stocks, bonds, and MMF funds, based on the market conditions.
 Up to 12 times a year, no transfer fees charged