iM Life launches variable annuity with 9% higher payouts

iM Life announced Sunday that it has launched revised editions of its three flagship guaranteed variable annuity products with enhanced pension features.

The updated lineup — the iM Start PRO, Master PRO and Travel PRO variable annuity insurance products — delivers pension payouts at least 9% higher than their predecessors. The company said the revisions are designed to protect the real purchasing power of retirement assets during a prolonged period of inflation and to secure stable cash flow. The products also strengthen a lifetime payout structure that continues payments as long as the policyholder lives, increasing benefits for customers who live longer.

iM Life provided a concrete example of the improvement. A 40-year-old man who enrolls in the iM Master PRO variable annuity, pays 300,000 won ($217) a month for 10 years and begins receiving payments at age 70 would collect 7.04 million won ($5,101) annually — 580,000 won ($420) more than under the previous product. The longer the policyholder survives, the greater the cumulative benefit.

Awareness is growing that public pensions alone cannot adequately cover retirement income, as pension reform this year gradually raises the national pension contribution rate and adjusts the income replacement rate to 43%. That shift has driven rising interest in private pension products such as variable annuities.

The revision follows iM Life's move in June last year to segment its guaranteed variable annuity lineup into products tailored to different life stages. The company has since continued to expand its pension product range, including the launch of the Plus PRO annuity insurance, which carries a minimum policyholder reserve guarantee.

Guaranteed products in the variable annuity market have sustained steady demand among middle-aged and pre-retirement customers because they reduce the risk of investment losses while securing a minimum level of pension payments. iM Life said it aims to use the revision to widen its lead over competitors and consolidate its position in the guaranteed annuity market.

"This revision is the result of thinking beyond simply launching a product — it reflects our commitment to ensuring customers can genuinely enjoy greater pension benefits in retirement," said Kwak Chan-hee, head of iM Life's sales strategy division.