AXA launches new "WealthAhead Savings Plan"
Limited offer plan with ultra-short premium payment term of 2 years
Pay 2 years of premiums in single lump sum
Prepaid premiums enjoy 6.8%p.a. guaranteed preferential interest rate for the 1st year
Projected total cash value reaches up to 315% of total premiums paid in the 20th year
AXA Hong Kong and Macau ("AXA") introduces the new "WealthAhead Savings Plan" (the "Plan"), featuring an ultra-short premium payment term of 2 years, supporting customers in accelerating their wealth accumulation and establishing long-term savings. In the 20th policy year, the projected total cash value exceeds 315% of total premiums paid1,2, which is equivalent to a projected total internal rate of return of 6.06% per annum1,2. Customers who pay 2 years of premiums in a single lump sum can enjoy a 6.8%p.a. guaranteed preferential interest rate on the prepaid premiums for the first year3, thus assisting customers in achieving their financial goals more easily. The plan is a limited offer.
Four Key Highlights of the Plan:
- Ultra-short premium payment term of 2 years with attractive potential returns
The plan offers a benefit period up to age 138 of the insured with an ultra-short payment term of 2 years, enabling customers to expedite their long-term financial planning. Customers can flexibly choose USD, RMB, or HKD as the policy currency based on their individual needs and life plans. The plan also includes guaranteed cash value, non-guaranteed reversionary bonus, and non-guaranteed terminal bonus, which can help customers grow their wealth and achieve their financial objectives. At the end of the 20th policy year, the total cash value is projected to exceed 300% of total premiums paid2 for all 3 policies currencies. If customers take out a policy in USD and choose to pay 2 years of premiums in a single lump sum, the prepaid premiums will enjoy a guaranteed preferential interest rate of 6.8%p.a. for the first year3. - Capture gains without setting an aggregate limit on lock-in rate
The plan features a flexible Policy Value Lock-in Option with no aggregate cap4 on the lock-in rate throughout the policy term, which is a market-rare5 feature. This allows customers to capture market gains, lock-in their returns and earn non-guaranteed interest. Beginning from the 10th policy anniversary, customers have the option to transfer a portion of the policy's guaranteed cash value and non-guaranteed bonuses into the Policy Value Lock-in Account. Customers can also withdraw part or all of the value from the Policy Value Lock-in Account at any time, offering greater liquidity for their financial arrangements. - Divide the policy into multiple separate policies for added flexibility
The plan includes the Flexi Segregation Option, which enables customers to transfer a portion of the policy value into a separate policy6. Customers can exercise this option as many times as they wish during a policy year and throughout the policy term with no administration fees. This feature enhances efficiency in wealth allocation and creates personalised plans tailored to their specific needs. - Comprehensive legacy scheme enabling generational wealth transfer
The plan offers a range of features to support customers in legacy planning and wealth preservation for future generations, including the "Change of Insured Option," the "Designation of Contingent Owner," and the "Flexi Continuation Option".
- Change of Insured Option: The policy owner can change the insured for an unlimited number of times. The benefit period will be extended to up to age 138 of the latest insured. This feature allows customers to pass on their legacy to future generations without affecting the policy values.
- Designation of Contingent Owner: The plan allows customers to designate a contingent owner. In the unfortunate event of the policy owner's death, the contingent owner can take over as the new policy owner, ensuring the family's financial security.
- Flexi Continuation Option [Market-Rare4]: The policy owner can designate a contingent insured and pre-assign the allocation percentage for wealth transfer and compassionate benefit. In the event of the insured's death, the contingent insured will become the new insured. The allocated portion of the policy value will continue to grow for future generations. A compassionate benefit will be paid in a lump sum to the designated beneficiary, providing immediate financial support.
Additionally, the plan offers the market-rare4 "Superior Death Benefit Option", which provides a death benefit of at least 130%7 of the total standard premiums paid (with no additional premium required) and the "Regular Death Benefit Option". The death benefit will be paid in the unfortunate event of the insured’s passing.
The "WealthAhead Savings Plan" is available for a limited time with limited quota only. For more information about "WealthAhead Savings Plan," please visit https://www.axa.com.hk/en/wealth-ahead-savings-plan.
The above information is for reference only. For details on promotional offer and product features, content, terms and exclusions, please refer to the product brochure, policy contract and promotional leaflet.
Remarks:
1 The policy must be denominated in USD.
2 The above projected values are for reference only and based on certain assumptions, including but not limited to annual premium payment mode is chosen, all premiums are paid in full when due, no levy on insurance premiums is included throughout the term of the policy, no benefits have been paid and no withdrawals or other policy options have been exercised. These projected values are not guaranteed and are projected based on the Company's current assumed bonus scale. The actual values may be higher or lower than these projected values.
3 The policy must be denominated in USD and a one-time payment equal to twice the initial annual premium of the basic plan is required at the time of application. Terms and conditions apply, please refer to the relevant promotional materials for details.
4 The annual maximum locked-in rate is 50% of the latest policy value.
5 This comparison is based on participating savings plans with multiple policy currencies offered by major insurance companies in Hong Kong. The comparison references information obtained from the websites of the relevant insurance companies and other data from AXA, as of January 3, 2025.
6 The notional amount of the split policy and the remaining notional amount of the existing policy must not be less than the minimum amount as may be determined by the Company from time to time.
7 130% of the total standard premiums paid is equivalent to 100% plus an extra 30% of the total standard premiums paid. The extra 30% of the total standard premiums paid is not applicable if the insured’s death happens (a) during the first 3 policy years; or (b) when the initial insured’s age is above 60 (the initial insured’s age is counted from the date of birth of the initial insured up to the date of death of the insured, as if the initial insured were still alive as at the date of death of the insured, regardless of whether or not the initial insured passed away before the insured).
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