Comparison between FortuneXtra Savings Plan and traditional savings products: Why choose FortuneXtra?

Comparison between FortuneXtra Savings Plan and traditional savings products: Why choose FortuneXtra?

Comparison between FortuneXtra Savings Plan and traditional savings products: Why choose FortuneXtra?

FINANCE

2024-03-07

5  Mins Read

In today's fast-paced world, financial planning is more crucial than ever. It's about being adaptable to the ever-evolving global landscape. With the right financial strategy, you can reach your life goals faster and more efficiently. AXA has introduced the FortuneXtra Savings Plan (‘FortuneXtra’) to help you prepare for a future full of endless possibilities.

FortuneXtra Savings Plan

Explore how it helps make your wealth planning more stable, flexible and secure.

 Traditional savings products

Traditional savings products are those financial products that offer stable interest rates and are typically provided by banks or other financial institutions. These products are known for their lower risks and more stable returns, making them suitable for those who prefer conservative investments. Here are some common traditional savings products:

1. Time deposit: Investors deposit a sum of funds into a bank's time account and lock the funds for a specific deposit period. When the deposit period ends, you can get your principal back along with the interest.

2. Current deposit: Investors deposit funds into a bank's current account and can withdraw the deposit at any time, but the interest return is usually low.

3. Savings insurance: Savings insurance is a comprehensive long-term financial management tool that can increase asset value and meet life protection needs. It steadily increases assets through guaranteed cash value and distributed dividends, while also considering the protection of family finances.

4. Bond: A bond is a fixed-income security where investors borrow money from the issuer, who promises to pay interest and repay the principal within a certain period. Bond returns are generally more stable but carry certain risks.

5. Money Market Fund: A money market fund invests in short-term, highly liquid financial products, usually offered by banks or other financial institutions. These funds typically invest in short-term government and corporate bonds, notes, and other highly liquid financial products, offering relatively stable returns.

【FortuneXtra Savings Plan】Explore how it helps make your wealth planning more stable, flexible and secure.

Features of FortuneXtra Savings Plan

  • Dual currency account: First in the market** - you can choose up to two currencies from nine local or foreign currencies and make unlimited currency conversion options to cater to various global opportunities.
  • Multiple separate polices: Starting from the 3rd policy anniversary, you may apply to exercise the Flexi Segregation Option^. This option allows you to transfer part of the value from your policy to a separate policy (‘Segregated Policy’) with no administration fee.
  • Designation of contingent owner#: After the first policy year ends, the policyholder can appoint a contingent owner. In the event of the unfortunate death of the policyholder, the contingent owner can smoothly take over and become the new policyholder.
  • Unlimited changes in the insured of the policy: The FortuneXtra Savings Plan can extend wealth from generation to generation and can change the insured of the policy for an unlimited number of times, allowing policyholders to plan their assets early so that wealth can be passed down continuously.

Why choose FortuneXtra Savings Plan?

In today's society, personal financial planning requires flexibility. Whether you're a young person exploring the world or a parent prioritising your children's future, everyone wants to achieve their life goals with the right financial plans.

While traditional savings products offer stability and security, they often lack the flexibility and diversified functions needed to meet modern people's diverse needs. In contrast, the FortuneXtra Savings Plan provides a range of features and functions to make it more suitable for your needs and help you navigate the ever-changing environment.

【FortuneXtra Savings Plan】Explore how it helps make your wealth planning more stable, flexible and secure.

If you want to learn more about the FortuneXtra Savings Plan or plan a comprehensive savings strategy for yourself and your family, please contact AXA’s professional financial consultants now.

# An application to designate a contingent owner must fulfill the following requirements: (i) if the policy owner is the insured, the policy owner may apply to designate a contingent owner only if a contingent insured is also designated at the same time; (ii) the contingent owner must be at or above age 18 as at date of the application for the designation of the contingent owner; (iii) the designation satisfies such insurable interest requirements as the Company considers applicable (only for policies issued in Hong Kong); (iv) the policy owner and the contingent owner must be alive at the time of application and on the date the Company approves the designation; (v) the designation of contingent owner must be endorsed in writing by the contingent owner, the irrevocable beneficiary (if any) and the assignee (if any); and (vi) only one individual person can be designated as the contingent owner at any one time. Written application for the designation of a contingent owner should be made by you and such application is subject to applicable laws, regulations and guidelines, the administrative rules of the Company, other conditions as set out in the specified application form and approval of the Company at its sole and absolute discretion. If the policy owner dies before the maturity date while the basic plan is in effect, the contingent owner shall replace the deceased policy owner and become the new policy owner subject to the Company’s prevailing rules and the conditions as set out in the policy contract. The Company has sole and absolute discretion to approve or disapprove the replacement of the deceased owner by the contingent owner. If the Company approves the replacement of the deceased policy owner by the contingent owner, the contingent owner will become the new policy owner and shall assume all the obligations and be entitled to exercise all the rights of the policy owner. The designation of the contingent owner will be revoked automatically upon specified events as set out in the policy contract. Please refer to the policy contract for details.

^ When you apply to exercise the Flexi Segregation Option, you shall specify the percentage (the “Segregation Percentage”) of the total cash value you wish to transfer to the Segregated Policy. An application to exercise the Flexi Segregation Option must fulfill the following requirements: (i) the notional amount of the Segregated Policy and the remaining notional amount of the existing policy immediately after the transfer must not be less than the respective minimum amounts as may be determined by the Company from time to time; (ii) an application to exercise the Flexi Segregation Option cannot be withdrawn or changed once made; (iii) at the time of our approval of your application, all premiums of the policy which are due have been paid, there is no advance payment of the premiums and the policy has no indebtedness; (iv) if there is any outstanding application for any transaction under the existing policy, the Company will not process the application to exercise the Flexi Segregation Option until such transaction has become effective or such application has been withdrawn; and (v) any application to exercise the Flexi Segregation Option is subject to the approval of the Company at its absolute discretion. If the Company approves the application to exercise the Flexi Segregation Option, (i) the notional amount will be reduced in accordance with the Segregation Percentage, and the guaranteed cash value, the face value and the cash value of the reversionary bonus, the face value and the cash value of the terminal bonus, the value of the Prime Currency Account, the value of the Global Currency Account, the benefits and premiums payable (if applicable) under the existing policy will also be reduced accordingly; (ii) all supplement(s) (if any) attached to the existing policy will continue to be attached subject to the Company’s then prevailing rules and minimum amount requirement; (iii) the policy commencement date of the Segregated Policy will be the same as that of the existing policy; (iv) the policy currency and the currency of the global currency account of the Segregated Policy will also be the same as those of the existing policy; and (v) an amount which is equal to the total cash value multiplied by the Segregation Percentage will be transferred to the Segregated Policy. Please refer to the policy contract for details.

**This reference pertains to savings insurance plans of a similar nature introduced post-2011. After securing the policy value, you can maintain dual currency accounts under the same policy (as per AXA's internal market survey, data accurate as of November 2021).

The above content is reviewed by Mr Daniel Lau - Head of Wealth Management Training of AXA Hong Kong and Macau.

The plan is subject to the terms, conditions and exclusions of the relevant policy contract. AXA reserves the final right to approve any application. For detailed terms, conditions and exclusions of the plan, please refer to the relevant policy contract.

No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided.  AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.

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