AXA launches “Wealth Ultra Savings Plan (2-year Pay)”

Short premium payment term with low entry fee and high long-term growth

Market-exclusive no aggregate-limit Bonus Lock-in Option to best capture returns

Unlimited times for changing the insured enables wealth accumulation across generations

Up to 4% p.a. guaranteed preferential interest rate for premium prepayment

HONG KONG, Feb. 8, 2021 /PRNewswire/ — AXA Hong Kong and Macau have today announced the launch of “Wealth Ultra Savings Plan (2-year Pay)”(“Wealth Ultra (2-year Pay)”), a participating life insurance plan with a short premium payment term of two years under which customers can enjoy sustainable wealth growth with an annual premium from as low as US$D10,000.

If customers choose to pay the 2-year basic plan premium in one go, they can also enjoy a 4% p.a. guaranteed interest rate on the prepaid premium. Key features of Wealth Ultra (2-year Pay) include:

• Market-exclusive feature – Bonus Lock-in Option to lock in gains without an aggregate limit for the lock-in rate
• Market-exclusive feature – Flexi Continuation Option to support both life protection and legacy planning
• An unlimited number of times for changing the insured to pass on wealth across generations

“Wealth Ultra (2-year Pay)”is a limited-time offer, available on a first-come-first-served basis.

Short premium payment term projected to double every 10 years

Wealth Ultra (2-year pay) offers a premium payment term of just 2 years and an annual premium as low as USD10,000, allowing customers to enjoy all benefits of the plan without the burden of a long-term financial commitment.

Premiums are guaranteed to remain unchanged throughout the 2-year period.  If customers choose to pay the 2-year premium in full at the time of application, they can enjoy up to 4% p.a. guaranteed interest rate on the prepaid premium, generating attractive additional returns in the current low interest rate environment.

Apart from the guaranteed cash value, Wealth Ultra (2-year pay) also provides two types of non-guaranteed bonuses – the reversionary bonus and the terminal bonus.

Starting from the 6^th policy year, the total cash value is projected to double every 10 years on average; and from the 82^nd policy year, the total Internal Rate of Return (IRR) for each policy year is expected to exceed 7%.

Market-exclusive feature 1:  No aggregate limit for bonus lock-in rate to best capture market returns 

Wealth Ultra (2-year pay) Bonus Lock-in Option allows customers to transfer the reversionary bonus and terminal bonus to the bonus lock-in account, without partially surrendering their policies. They can thus turn the non-guaranteed bonus into guaranteed and earn up to 4% p.a. interest from it, avoiding potential changes to the returns posed by market fluctuations and accelerating their wealth accumulation.

Wealth Ultra (2-year pay) is particularly unique in the market as it offers no lifetime aggregate limit for the lock-in rate. Customers can pass on the policy to future generations without having to worry about exhausting the lock-in rate. The plan also provides flexibility for customers to withdraw part or all of the value from the bonus lock-in account anytime according to their needs.

Market-exclusive feature 2:  Flexi Continuation Option to support both life protection and legacy planning

Wealth Ultra (2-year pay) allows changing the insured for an unlimited number of times without affecting the policy value. The insured period can be updated to age 138 of the latest insured, enabling passing on wealth across generations.

The market-exclusive Flexi Continuation Option takes care of both the life protection and legacy planning needs of customers. They can designate a contingent insured in advance, so in the unfortunate event that the initial insured passed away, the designated contingent insured will become the new insured, and the pre-assigned portion of the policy value will be passed on accordingly for wealth accumulation; and the remaining portion will be payable to the designated beneficiaries in the form of compassionate benefit for immediate financial support.

Mr. Kevin Chor, Chief Life and Health Insurance Officer, AXA Hong Kong and Macau, said, “Last year we launched Wealth Ultra Savings Plan and received very positive feedback and a number of awards. COVID has affected the global market environment, disrupting the wealth management plans of many. We understand that customers are hoping to achieve long-term financial growth with short-term commitments, therefore we launch Wealth Ultra Savings Plan (2-year pay) this year, providing them with competitive returns without requiring a long-term payment. The plan comes with a Bonus Lock-in Option which enables customers to capture market returns and not be affected by market volatility. Together with the unlimited times for changing the insured and Flexi Continuation Option, customers can enjoy the benefits of protection and cross-generation wealth accumulation all at the same time.”