NV MULTI Corp Bhd expects sales of RM115mil this year from its newly launched bereavement care insurance plan in collaboration with Great Eastern Life Assurance (M) Bhd.
Its chief executive officer Tan Tiam Chai said this was a reasonable projection as the Golden Peace Plan costs RM23,000 each and the company would need about 5,000 cases to get the projected sales of RM115mil.
The product offers consumers an investment-linked life insurance plan that grows in value over the years.
Policy owners will get a sum assured of RM23,000 in the event of natural death and RM46,000 in the case of accidental death. The premium cost of RM23,000 is a one-off payment and the bereavement care package under the plan is transferable.
Great Eastern chief executive officer Alex Foong said an additional benefit of the plan was that the policy owner would still enjoy the protection and insurance coverage until such a time when he, or she, decided to surrender the plan.
Tan said to make the one-off premium of RM23,000 per plan more affordable to the public, there was an option to purchase the product through a policy loan secured against the cash value of an existing Great Eastern policy, or a combination of cash and policy loan.
There will be variations of the payment methods later as we are looking at options like bank loans to make the plan more affordable, he said at the launching of the Golden Peace Plan in Kuala Lumpur yesterday.
The occasion also saw the signing of a memorandum of understanding and collaboration between NV Multi and Great Eastern.
Tan said other products in the pipeline that would involve collaboration with Great Eastern include working with banks to come up with a similar package like the Golden Peace Plan which would be targeted at bank customers. This is expected to be launched in one and a half months' time.
We are also coming up with bereavement care riders with Great Eastern to add on to its life insurance policies. Another project is the annuity home plan or silver hair project where people save for retirement in resort-type retirement homes, he said.
He added that the annuity home plan was a new business for the company.
Currently, the bereavement services package may be utilised in NV Multi Corp subsidiary NV Care Sdn Bhd's service centres in Klang Valley, Penang, Johor Baru and Kuching. By the end of this year, service centres will also be operational in Klang, Ipoh, Prai, Malacca and Sibu.
The Golden Peace Plan is open to all non-Muslim aged 65 and below. Subscribers of the plan will also enjoy a preferential rate or 15% off any of NV Care's memorial products if exercised within a 6-month period.