AIG Life products for children and credits

Circumstances make insurance companies take on new products. AIG Life on Monday launched, besides a group insurance product aimed at children, a simple death insurance for loan contractors, Credit Life. Amid a slump in interest rates, lending to individuals has registered a considerable increase lately, and insurance companies have taken advantage of this higher demand to sell their products. Banks require loan applicants to take a life insurance policy payable to the bank and often recommend to their customers the company they can buy the respective insurance from. The novelty of Credit Life is the fact that the insured sum is adjusted to the credit balance, so that, since this sum is continuously decreasing, the insurance policy also gets cheaper as the loan is reimbursed, explained Mihai Popescu, Employee Benefits and Financial Institutions Manager. The company works with Raiffeisen and Citibank. AIG expects sales of 360 billion ROL (10.9 million dollars) in the first nine months of this year, 63% higher as compared to the same period of last year. ZF