Hong Kong's living cost is soaring, with prices escalating across all facets of daily life. A seemingly small price hike can easily go unnoticed, but over time, inflation quietly erodes the value of your hard-earned savings. Consider this: a breakfast that used to set you back 20 Hong Kong dollars a decade ago now starts at 30 dollars. When coupled with rising transportation costs, utility bills, and medical expenses, many find themselves grappling with the relentless strain of inflation without a corresponding increase in income.
In the realm of wealth management, ignoring the effects of inflation is a perilous oversight. Left unchecked, it can gradually chip away at the value of your savings, leading to a depreciation of your wealth. Thus, devising a savings plan early on becomes imperative to mitigate the risk of inflation eroding your assets.
FortuneXtra Savings Plan (2-Year Pay)
Enjoy a guaranteed preferential interest rate of 8.8% p.a. for the first year on prepaid premiums.*
What is inflation?
Inflation denotes the persistent increase in the general price level within an economic system. Expressed as a percentage, the inflation rate signifies the rate at which prices rise over time. It stems from various factors, including excessive demand, insufficient supply, and an overabundance of money in circulation.
【FortuneXtra Savings Plan(2-Year Pay)】Only for a limited time, enjoy a guaranteed preferential interest rate of 8.8% p.a. for the first year on prepaid premiums.*
How inflation diminishes savings?
As inflation takes hold, the purchasing power of money dwindles, meaning that the same amount of money buys fewer goods and services. Inflation exerts a dual impact on the depreciation of savings. Firstly, it diminishes the purchasing power of money, thereby impacting savers' living standards. Secondly, inflation erodes the value of savers' assets, adversely affecting their financial well-being.
How to tackle inflation effectively?
Addressing inflation is a critical financial concern as it has the potential to diminish the value of your wealth over time. Therefore, when devising financial management strategies, it's essential to adopt a direction of 'diversified allocation and diversified investments' to ensure that you can achieve the goal of preserving, growing, and passing on value.
As one of the medium and long-term savings instruments for combating inflation, savings insurance not only possesses the capability to enhance asset value but also caters to life protection needs. It enables you to diversify your investments across various high-quality assets, including government bonds, corporate bonds, listed company stocks, and private equity investments. Unlike time deposits, which offer limited returns, these diversified assets present the opportunity for more efficient returns, thereby assisting in counteracting the erosive effects of inflation on your wealth. Furthermore, the life protection component offered by savings insurance ensures that your family will receive financial assistance in any unforeseen emergencies. These dual benefits make savings insurance an ideal choice for investors seeking both security and stability.
【FortuneXtra Savings Plan(2-Year Pay)】Only for a limited time, enjoy a guaranteed preferential interest rate of 8.8% p.a. for the first year on prepaid premiums.*
Features of AXA’s FortuneXtra Savings Plan
AXA has introduced the limited-time 'FortuneXtra Savings Plan', designed to not only enhance asset value but also cater to everyone's life protection needs. With flexibility at its core, it offers up to 9 currency options, along with currency conversion flexibility and policy value lock-in options. Moreover, it provides the ability to split the policy and designate both the backup holder and the insured, offering the flexibility to nurture your wealth and explore global opportunities. Other notable product features include:
- Choose from up to 9 policy currencies, including RMB, USD, GBP, etc.
- Unlimited number of times† of policy currency conversion in whole or in part
- First-in-market**: Dual currency lock-in accounts to accumulate interest and make flexible withdrawals anytime
- Divide your policy into multiple separate policies: More flexible financial planning
- Flexible and comprehensive inheritance options, including changing the insured and appointing a contingent owner for an unlimited number of times
- Achieve ambitious goals with considerable potential returns
For more insights into protection and savings plans tailored to your needs, feel free to reach out to AXA's cadre of professional financial consultants.
* By paying a lump sum amount which is equal to 2 times the amount of the initial annual premium for the basic plan of FortuneXtra Savings Plan (2-year pay) with policy currency of USD at the time of application. Promotional period ends on 30 Apr 2024. Terms and conditions apply. For details, please refer to the relevant promotion leaflet.
† Commencing from the designated policy anniversary, you can apply to exercise the currency conversion option within 30 days of each policy anniversary. Please note that the currency conversion can only be applied for once in a policy year.
**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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FortuneXtra Savings Plan (2-Year Pay)
【Limited-time offer】Enjoy a guaranteed preferential interest rate of 8.8% p.a. for the first year on prepaid premiums.*
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