BylesDennise Williams, Staff Reporter
LIFE OF Jamaica (LoJ) yesterday introduced a new innovative insurance product at the company's Barbados Avenue, New Kingston, headquarters.
Richard Byles, president and chief executive officer of LoJ, said the company's Ultra Life Plan, an insurance and equity-linked product, is now available officially on the market.
Like National Commercial Bank's Omni Insurance and Bank of Nova Scotia's ScotiaMint, Ultra Life Plan, he said, offers greater life insurance and death benefits along with its investment feature.
"As a result of responding to the demands of the insurance-buying public, it gives me a great deal of pleasure to launch Ultra Life Plan," Byles said.
Ultra Life is available to anyone up to the age of 80. The plan offers a flexible approach to personal financial planning needs in addition to providing life coverage.
A percentage of each basic premium paid by an Ultra Life policy holder will be invested each month on behalf of the policy holder in the interest fund. A percentage of each additional premium is invested in the LoJ investment funds.
Consider this: a 35-year-old male investing $5,000 per month can, at retirement age, have $13.3 million as his total death benefit. This comprises a basic sum insured of $2.6 million, interest earned of $2.2 million, and investment funds of $8.6 million. Even with a smaller monthly premium of $800, a 35-year-old male can earn a total death benefit of $1 million at age 65.
Mike Fraser, deputy CEO and chief marketing officer, explained Ultra Life in this manner: "Plenty people scoff and say that I don't need life insurance because I don't need the money when I die. Well, the innovative thing about Ultra Life is the fact that we have an accelerated death benefit. Say the doctor gives you bad news. You have only six months to live and want to sort out your business before you pass.
With Ultra Life, we will give you 50 per cent of the value of the total sum insured or the sum insured and the cash value. You can take the funds to clear off debt or travel to see your loved ones for a final time. We then pay off the remaining 50 per cent upon death."
Mr. Fraser explained that another feature of Ultra Life is the ability to increase the basic premium to guard against inflation, by 5 to 20 per cent, without a medical needed.
As with normal insurance policies, withdrawals are allowed, but with the Ultra Life, withdrawals can be made from the investment portion of the funds with the plan not being affected.
