New CIMB product offers dual income returns

Dual Income Insurance Plan enables customers to earn from the range accrual of KLIBOR, and equities indices of developed nations.

CIMB Bank last week unveiled the CIMB Dual Income Insurance Plan, an investment-linked insurance plan underwritten by CIMB Aviva Assurance Berhad, according to a CIMB report.

A five-year closed-ended investment product, CIMB Dual Income Insurance Plan, allows customers to enjoy dual income returns linked to the range accrual of KLIBOR (Kuala Lumpur Inter-bank Offer Rates) and equities indices of developed nations namely Japan, the US and Europe.

Potential coupons will be payable every six months based on the performance of the two income sources – interest rates and reference equities. When these reference investments stay within pre-determined lower and upper limits during the five-year period, coupons will be payable. In favourable cases, the potential semi-annual coupon payout ranges between 2.55% to 2.80% throughout the entire period.

"Malaysians are currently looking for investment vehicles which can help maximise their returns, yet diversify their risks. We believe that by adding this plan to our range of wealth management products, our customers will potentially reap the benefits from the dual income sources of local interest rate and equities," said Peter England, Head of Retail Banking, CIMB Bank Berhad.

"Additionally, we believe customers will also recognise the importance of the capital guaranteed feature which protects the money they have invested (if held to maturity) as well as the financial security that CIMB Bank offers," he added.

Meanwhile, Kevin Jones, Chief Executive Officer, CIMB Aviva Assurance Berhad explained, "The timing of this product roll-out is intended to capitalise on the recovery of global economy and improving local market sentiments. As an investment-linked product, CIMB Dual Income Insurance Plan also provides customers with insurance protection in the form of death coverage of up to 125% of premium paid as well as partial withdrawal flexibility in times of need."

Investment in CIMB Dual Income Insurance Plan can be made from 3 May 2010 at all CIMB Bank branches nationwide. Investment starts at a minimum of RM25,000 ($7,430) and offer period will end 4 June 2010 or upon full subscription, whichever earlier.