Ten months after Dubai Bank launched the Children’s Plan, research conducted by the bank has shown that 50 percent of all plans sold by the bank has been taken by United Arab Emirates (UAE) nationals of which a large percentage was UAE national women.
Launched in September 2002, Dubai Bank’s Children’s Plan was the first of its kind for the banking industry. It allowed customers to secure their children’s educational future through the flexibility of selecting from a range of tenure options starting from a minimum of five years, up to a maximum 21 years. The Plan further distinguishes itself by offering customers assured capital protection and a minimum rate of return, along with the option of full insurance cover.
Offering a range of payment options, contributions to the Children’s Plan can be made in installments, or through lump-sum payments at any time either at the beginning or during the plan. The regular monthly contributions can be increased or decreased at any time and there is no penalty levied for reducing contributions.
Dubai Bank’s Children's Plan can also be used as a simple regular savings plan for wealth building and retirement planning. The customer also has the option of buying an insurance cover on the goal amount at a minimal cost. In case of untimely death, the beneficiary will receive all the payments made to date, along with the growth of the investment, and the entire insured goal amount immediately.
While the market does offer insurance linked monthly savings and investment products, most of these are typically long-term plans with tenures of above 10 years, compared to Dubai Bank’s plan which starts at five years.
Dubai Bank is a fully owned subsidiary of real estate major Emaar Properties. Focused on retail and commercial banking, the bank’s launch in September 2002 is in total conformity with Emaar’s diversification strategy, which aims at optimizing the investment of group resources, while actively diversifying the sources of its revenues. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
