JN Life launches low-priced coverage
Seeing more room for growth in the life insurance market, JN Life has launched a new low-priced product, JN Life Vest, targeted at Jamaicans seeking coverage at a more affordable price.
JN Life is one of six life insurance companies. In the 12 months ended March 31, 2022, aggregate total assets for the life insurance companies grew by $25.4 billion or 6.8 per cent to $353.6 billion. The Financial Services Commission (FSC) in its sector update states that the uptick in total assets was driven by a $22.9 billion increase in combined invested assets.
JN Life Vest, launched in the first week of August, includes an investment option which will allow policyholders to choose the duration of their policy tailoring their needs for insurance, for premiums as low as $800 per month, the company indicates
The product is available to people between the ages of 18 and 65 years old, who can purchase a policy for a selected period of time, ranging from 10 to 30 years.
“We designed this product for Jamaicans who want affordable insurance which allows them to plan for life’s eventualities, while having the option to invest in the JN Mutual Funds to meet their medium-to long-term goals,” said Hugh Reid, general manager, JN Life Insurance Company.
“JN Life Vest allows you to choose between a 10, 15, 20, 25 and 30-year policy terms, to provide for life’s eventualities, whether it is for major illness, a medical procedure, or long-term investment, for the proverbial rainy day. Individuals can also add other benefits, such as accidental death and dismemberment and a disabilities waiver to ensure maximum protection on their policy.”
Reid explained that a term life policy is a type of life insurance which guarantees payment of a stated death benefit, if the covered person dies during a specified term. Once the term expires, the policyholder can either extend the coverage for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate and encash the investments.
He commented that JN Life Vest is “affordable and available to all Jamaicans”.
“Many Jamaicans are underinsured and want to purchase insurance to provide coverage in the event of eventualities. Many recognise that insurance can provide protection in the event of major illness or death. JN Life Vest will provide them with an affordable insurance product, that starts as low as $800 per month while giving them peace of mind,” he explained.
Premiums earned
The March 2022 data from the FSC for the life insurance sector indicates that for the three-month period ended March 2022, net premiums earned (NPE) for the industry amounted to $18.8 billion, reflecting a 6.7 per cent increase when compared to the NPE of $17.6 billion for a similar period in 2021. Other income remained constant at the $1.5 billion recorded in the comparative period in 2021.
Due to lower fair value gains as well as fair value losses, net investment income declined by 13.7 per cent from $5.5 billion at March 2021 to $4.7 billion at March 2022. Consequently, combined total revenue increased by 1.6 per cent to $25.0 billion compared to (March 2021: $24.6 billion).
The FSC noted that despite an enlargement of $1.3 billion in policy benefits for the life insurance companies, accumulated total expenses excluding taxes for life insurers declined by 7.9 per cent to $18.2 billion (March 2021: $19.8 billion). Net income before tax rose 41.0 per cent to reach $6.8 billion at March 2022, (March 2021: $4.8 billion).