[뉴스토마토 권유승 기자] As the stock market fluctuated on news of Russia’s invasion of Ukraine, variable insurance fund assets are also showing severe volatility. Since variable insurance is a long-term product, it is pointed out that impulsive termination caused by a sudden drop should be avoided.
According to the life insurance industry on the 28th, the total assets of variable insurance funds stood at 106.2 trillion won based on the closing price on the 25th. 700 billion won in two days, and more than 5 trillion won in two months. Variable insurance is a product that invests the premiums collected in stocks or bonds and pays the policyholder the performance of the investment.
The decline in variable insurance fund assets appears to have been primarily due to the Russian invasion of Ukraine. On the 24th, when Russia invaded Ukraine, the KOSPI and the KOSDAQ plunged 2.6% and 3.3%, respectively, from the previous day. However, the stock market rebounded the next day as it was predicted that the hawkish behavior of the US Federal Reserve (preferring monetary tightening) would weaken due to the Ukraine crisis.
This is not the first time variable insurance fund assets have fluctuated. At the end of last year, variable insurance fund assets plummeted by nearly 2 trillion won in a week due to stock market unrest over concerns about Omicron. At that time, the KOSPI showed a downward trend for six consecutive trading days, hitting the lowest level of the year.
Variable insurance began to sell hotly from the end of 2020, when the COVID-19 outbreak occurred. This is because the interest of consumers has increased as the stock market is active in the low interest rate environment. The initial premium for variable insurance was 3.1 trillion won last year, an increase of 1.3 trillion won from 1.81 trillion won in 2019.
Subscribers’ attention is also required. This is because, if you cancel your subscription impulsively when the stock market fluctuates, you may incur a loss of principal. Experts emphasize that variable insurance is not suitable as a product for short-term returns. This is because business expenses and risk insurance premiums are set in the insurance premium, and cancellation deduction costs are additionally incurred upon cancellation. It is explained that the contract must be maintained for at least 10 years to expect more than the principal. In the case of mid-term cancellation, the minimum guarantee function and the Depositor Protection Act do not apply.
An official from the insurance industry said, “It is correct to invest with a long-term perspective rather than reacting to short-term volatility in the stock market.” “Especially for customers who invest in a savings-type system, if you pay premiums when the stock market is down now, you can make a bigger profit when the stock market normalizes in the future.” can look at,” he said.
In a commercial bank’s dealing room, a dealer reads articles about economic impacts and plans to tighten monetary policy. (Photo=Newsis)
Reporter Kwon Kwon-seung firstname.lastname@example.org
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