The hottest selling insurance policy in Taiwan so far this year is a micro life insurance policy targeted at the elderly, the sales of which enjoy the active encouragement of the financial authorities.
Between February, when the policy was launched, and the end of September, premiums from the product reached NT$3,386 million (US$112 million) with 291,343 policies sold, according to data from the Financial Supervisory Commission (FSC). People aged at least 55 accounted for around NT$2,152 million or 64% of the total premiums generated to the end of September.
Insurance Bureau Deputy Director-General Tsai Li-ling said that the micro life insurance policy pays accident cover of NT$200,000 and death benefit of NT$300,000. Policyholders can subscribe to the insurance plan till the age of 84. The premium rates is 20% cheaper than other life policies.
The FSC said that generally, life insurance policies are sold to those aged younger than 65. There are very few products catering to those aged at least 65, most of which require subscribers to pay single premiums.
Thus, the regulator requested the insurance industry to promote life microinsurance, and gave the product policy backing.
The regulator is encouraging people to take up the micro life cover because of Taiwan's ageing population.