Belgian bank KBC has launched a life insurance product with a rare leverage feature that gradually repays initial capital over the life of the product.
KBC-Life Flexible is a 12-year ‘branch 23’ life-insurance product, with returns linked to the DJEuroStoxx via KBC-Life Flexible September 2008, an uncapped call wrapped as a fund.
Initially, 100% of the investment is placed in KBC-Life Flexible September 2008, and from the third year onwards, the product shifts 10% every year to KBC-Life Flexible Cash, where it can either remain or be withdrawn.
At maturity, investors receive 100% of the rise in the DJEurostoxx50 since inception, capped at 200%, plus any extra capital gained from the reserve held in KBC-Life Flexible Cash.
This product is available now in Recent Additions (Belgium).
