Turning Dormant Lump Sums into Annuities... Samsung Life Launches "Lump-Sum Payment Annuity Insurance"

Samsung Life Insurance announced on the 14th that it will launch the “Samsung Lump-Sum Payment Annuity Insurance,” which allows customers to pay the premium in a single lump sum upon enrollment, maintain the policy for a minimum of five years, and then receive payments as an annuity.

The company explained that customers who are nearing retirement or have already retired generally have a relatively short time remaining to build up their annuity resources through monthly contributions. Samsung Life Insurance said it developed this product so that such customers could utilize their accumulated lump-sum assets as annuity resources.

For the initial five-year period after enrollment, a fixed interest rate is applied, regardless of market interest rate fluctuations. After five years, the declared interest rate—which takes into account the company’s asset management yield and prevailing market rates—is applied. The declared interest rate may change monthly.

The product is available in two types: basic and enhanced annuity. The enhanced annuity type focuses on maximizing the growth of annuity resources by allocating a larger maintenance bonus than the basic option if the policy is held for five years. The enhanced option pays an additional maintenance bonus rate on top of the basic premium’s maintenance bonus rate.

This digital-only product can be purchased via Samsung Life Direct or through the integrated Samsung Financial Group app, “Monimo.” The eligible age for enrollment is from 20 to 85 years, and policyholders can select an initial payment amount ranging from a minimum of 2 million won up to 100 million won.

A Samsung Life Insurance representative stated, “This product enables customers seeking to utilize accumulated funds for retirement annuities to easily understand the product structure and enroll with convenience. We will continue to translate complicated insurance jargon into customer-friendly language and expand products and services that are easy and accessible in digital environments.”

This content was produced with the assistance of AI translation services.