Universal life insurance - the choice of many high-end customers

The appeal of universal life insurance

According to a report from Allied Market Research, the global universal life insurance market reached a value of USD 117.5 billion in 2022 and is expected to increase to USD 280.4 billion by 2032, with a compound annual growth rate (CAGR) of up to 9.3% during the period 2023 - 2032. This boom reflects the growing trend of searching for comprehensive protection solutions globally.

In Vietnam, universal life insurance is also witnessing strong growth. According to the Vietnam Insurance Association, by the end of 2024, the number of new contracts for this product accounted for 46.9%, while holding the leading position with 56.7% of the total number of effective contracts. Notably, revenue from universal life insurance contributed to 55.7% of the total revenue of the whole market.

Explaining the appeal of universal life insurance, Allied Market Research analyzed: the strong development of the universal life insurance market lies in its ability to support customers in financial planning and effective asset transfer. When the insured person encounters a risk, the insurance benefits will be transferred directly to the beneficiary without having to go through complicated inheritance procedures. This strength of the product is said to meet the needs of the high-end customer segment, when the global wealthy class is expected to transfer more than 80 trillion USD in the next two decades.

Universal life insurance has great potential to reach and meet the needs of high-end customers. Photo: BIDV MetLife

In addition, the joint insurance products also have a flexible mechanism. Participants can proactively adjust the insurance amount, increase or decrease benefits according to personal needs and financial situation in each period. Not only does it play a protective role, this product also acts as an effective investment tool, when the contract account value is accumulated with the investment interest rate of the Joint Linked Fund. This helps the accumulated assets grow steadily over time, while providing peace of mind to customers in the face of life's fluctuations.

Looking forward to new universal insurance products
With the increasing demand for universal life insurance, BIDV MetLife plans to launch a new universal life insurance product this April. As a combination of two big names, BIDV and MetLife Group, BIDV MetLife inherits global financial strength and a deep distribution network and platform in the domestic market. This cooperation has helped BIDV MetLife gain a deeper insight into the market and thereby launch financial solutions that suit customers' needs at each time.

Although details have not been disclosed, the company representative said that this new product will have some distinct advantages compared to the previous products, namely Happiness Gift (a lifetime joint product) and Health Gift (a joint product that protects against diabetes and cancer). These improvements will better meet the needs of high-end customers when looking to buy and use joint insurance.

BIDV MetLife's new product is expected to better meet the needs of high-end customers. Photo: BIDV MetLife

The launch of this new product is also part of BIDV MetLife's development strategy for 2025. Through the expansion of the product portfolio, Ms. Elena Butarova, CEO of BIDV MetLife shared: "Our goal is to enhance the customer experience with personalized solutions, bringing outstanding value and convenience."

With the strong development trend of the market and the continuous improvements from insurance companies such as BIDV MetLife, universal insurance promises to continue to be the priority choice of high-end customers in the coming time.

Le Thanh

Source: https://vietnamnet.vn/bao-hiem-lien-ket-chung-lua-chon-cua-nhieu-khach-hang-cao-cap-2391037.html