Hong Leong Assurance (HLA) has introduced the Hong Leong CASH Builder, a participating endowment plan which allows policyholders to structure their own income and protection plan.
Policyholders can receive guaranteed yearly income under all circumstances, said Loh Guat Lan, chief operating officer (life division), Hong Leong Assurance Bhd.

“For example, a parent purchases the policy. While he is alive, he could use the yearly income to support the children’s tuition fees. But when a mishap happens, the basic death benefit can support the immediate family’s needs and the future unpaid yearly income will also be payable to support their children’s education,” said Loh. She said the company plans to achieve a sales target of RM150 million within a six-month period.

Under this plan, policyholders can pick from four different Builder riders. These riders come with varying guaranteed annual return, while the return payback starts at different inception dates. Policyholders also have the option to combine any of the four Builder riders, up to five times of the basic sum assured. There are also options of 20 protection riders, ranging from medical coverage and waiver of premium. Premiums are to be paid for six years or 10 years, and insurance coverage is up to 35 years, depending on the structure.

The minimum sum assured for this endowment plan starts from RM10,000, which means that the annual premium starts at around RM2,000 to RM3,000. On top of the yearly guaranteed income, there is a guaranteed maturity benefit of 100% of the sum assured and potential gains through yearly cash dividends and terminal dividends.