Alfalah GHP Investment Management Limited (AGIML) recently signed an Agency Distribution Agreement with IGI Life Insurance Limited (Formerly American Life Insurance Company (Pakistan) Limited). Under this new initiative, AGIML will be offering free life insurance to its mutual fund investors.
Maheen Rahman, CEO of AGIML, on the occasion said that this was a positive step for small investors in Pakistan to benefit from both life insurance coverage and steady income and returns which were the hallmark of mutual fund investments. Life insurance penetration and overall investment ratios in the country are very low and there is a strong need to increase the distribution of such products which will improve the financial strength and stability of smaller investors.
Under the agreement, individual investors with a minimum invested amount of Rs 2.5 million in Alfalah GHP mutual funds will have the option of receiving free life insurance cover up to Rs 1.6 million in case of accidental death, and Rs 600,000 in case of natural death.
Furthermore, eligible investors of Alfalah GHP will also be entitled to purchase additional insurance cover up to Rs 10 million, at reduced and attractive premium rates. Muhammad Aminuddin, Deputy CEO of IGI Life Insurance, elaborated that a life insurance wrapper on mutual funds managed by AGIML is a new and effective combination of value-added and bundled products in the financial services sector.
He further expressed that low insurance penetration in Pakistan warrants delivery of insurance solutions at the doorstep in a most convenient manner, through opening new channels. Both IGI Life Insurance and AGIML are committed to provide most innovative customised solutions to their various customer segments.-PR
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