Savings through life insurance
In today’s uncertain world, it is crucial to have a solid financial plan in place. Savings is an important concept involving people putting money aside for emergencies or future obligations.
In commemorating International Insurance Day today, Wednesday 28th June 2023, BSP Life PNG Country Manager, Nilson Singh highlights the importance of “Savings with Life Insurance”, which is a more disciplined and secured way of saving for the long term.
BSP Life’s Wantok Delite Insurance is a long term insurance product sold to individuals, and provides both Savings and Protection Benefits. The premium that an individual pays for this product partly goes to cover for the risk of untimely death, and large part of it is invested as savings, which is paid back to the policyholders at maturity.
Mr. Singh said BSP Life is the only Life Insurance Company in Papua New Guinea that provides a Savings Life Insurance Product. A key feature of this product is the cash payout to customers every 3 years throughout the term of the policy. This is called Survival Benefit, and it is calculated as 10% of the sum insured (life insurance cover). “For instance, if you take out an insurance cover of K100,000, you will be paid 10 percent or K10,000 every 3 years. This year (2023) BSP Life started paying Survival Benefits to customers and as of June 2023, we have paid Survival Benefits to 212 customer at a value of K778,846. By end of 2023, we expect to pay K1.3m to total of 461 customers. These benefits are tax-free under the current tax laws.
Another key feature of this product is that our policyholders earn bonuses on their policy based on investment performance. The bonuses are declared every year and added to the sum insured on a compounding basis and will be paid out on maturity or on untimely passing of the policyholder,” he explained.
“In Papua New Guinea, less than 3 percent have some form of life insurance while others know little about the benefits of being insured. The biggest challenge in PNG is that Insurance penetration has been generally very low due to lack of market awareness and understanding the benefits of being insured. We are proud to be the only Life Insurer in PNG that offers our customers a disciplined approach to build up their savings and also have life insurance protection”, Mr. Singh added.
Since launch of the Wantok Delite Insurance product, BSP Life has signed up over 4,000 customers with sales offices in Port Moresby, Lae and Mt Hagen. A new sales office in Kokopo is planned to be opened by August this year. We have 80 independently contracted Life Insurance agents based in our sales office who are available to talk to prospective customers on how they can save with life insurance.
Talk to any of our BSP Life Sales Agents or BSP Life Team today on how you can benefit from being insured while saving with BSP Life PNG.