Kyobo Premier Variable Whole Life Insurance offers monthly annuities for families wanting a stable income stream for retirement, and protection in case of a breadwinner’s death.

Launched in May, the product guarantees up to 6 million won ($5,151) per month for the family even after the subscriber dies. Subscribers can protect the family against disruptions in their working life at the cost of 1 or 2 more percent on top of the subscription fee.

“We focused on providing income stability for the remaining family especially for those who currently receive high salaries,” Jeong Gwan-young, the head of product development team said.

If a subscriber planning to retire at 65 dies at the age of 45, the product gives a lump sum allowance of 300 million won to the family and offers 1 percent of the insured amount, 3 million won, of monthly annuities for 20 years. The monthly annuity can be raised depending on terms the subscriber agreed to at the point of subscription.

“The product allows subscribers to vary his or her insurance payment. Subscribers can choose to pay more premiums or draw money from their plan when they’re in need of cash,” Jeong said.

The Variable Whole Life Insurance is one of many at Kyobo Life as it strives to provide custom-tailored products for the growing pension market.

The nation’s third-largest insurer has been ranked second in the corporate pension segment, with about 1.5 trillion won in assets under management.

By Cynthia J. Kim (cynthiak@heraldcorp.com)