New AXA Max Wealth Insurance Plan

AXA Hong Kong and Macau (AXA) has announced the launch of its Max Wealth Insurance Plan ("Max Wealth"), which offers a market-leading guaranteed breakeven period as short as 5 years, and guaranteed cash value on the commencement day of the policy up to 81% of lump sum payment. With Max Wealth, customers are empowered to achieve their financing goals with optimal asset liquidity, and ultimately unleash the full potential of wealth accumulation.

Moreover, Max Wealth also provides a flexi designation option for customers to transfer part of the policy value to another insured with no limit in times, enabling the policyholder greater flexibility for legacy planning. By incorporating the lifelong protection, Max Wealth eases the customer's burden when facing unexpected situations in life, and in passing on their values and visions for life from one generation to another, AXA said in a press release.

Kevin Chor, Chief Life and Health Insurance Officer, AXA Hong Kong and Macau, said, "Market research showed that the median and the mean wealth per adult in Hong Kong have reached USD174,000 (approximately HKD1.36 million) and USD503,000 (approximately HKD3.95 million) respectively, ranking third highest globally. Additionally, the number of high-net-worth (HNW) and mass affluent individuals has been increasing in Hong Kong and hit 3.9 million in 2021, accounting for 60.6% of the overall population. These statistics indicate a huge market demand for wealth management products. Savings products with higher guaranteed cash value and shorter breakeven time will give customers more confidence, especially under the current volatile market condition. To address this, Max Wealth has been launched for customers to build resilience into their portfolios which allows high asset liquidity and flexibility under various market conditions, enabling them to have the flexibility to react promptly to the market and realise their long-term goals in wealth accumulation and legacy planning."

Four notable features of Max Wealth are as follows:

1. 2- year ultra-short premium payment term to free customers from long-term payment commitments
   
   With a minimum initial investment of USD20,000 (approximately HKD157,000), Max Wealth offers a convenient 2-year ultra-short premium payment term with a lump sum payment arrangement to eliminate the burden from long-term payment commitments. For customers who opt for the lump sum payment arrangement, the prepaid amount will accumulate interest in the first policy year at a guaranteed preferential interest rate in a Future Premium Deposit Account ("FPDA"). The amount will be automatically deducted from the FPDA to settle the annual premium for the second policy year when the first policy year ends.
    
2. Market-leading 5-year guaranteed breakeven period[2] with guaranteed Day-1 cash value[1] up to 81% of the lump sum payment and to unleash potential for wealth accumulation with flexibility and efficiency
   
   Under the lump sum payment arrangement, the sum of the guaranteed cash value and FPDA balance of the policy at the commencement of the policy will be up to 81%[1] of the lump sum payment. The guaranteed cash value will keep growing throughout the policy years and reach 100% of the lump sum payment as early as the end of the fifth policy year[2]. It gives customers extra confidence in achieving their financial goals. Following the conclusion of the third policy year, a terminal dividend may be payable to Max Wealth customers upon policy surrender, policy maturity or the death of the insured[6].
   
   Furthermore, Max Wealth's expected 10-year total internal rate of return can reach up to 3.8%[7]. Starting from the 15th policy anniversary, customers may apply to exercise the terminal dividend lock-in option to lock in gains without an aggregate limit for the lock-in rate. Also, part or all of the value of the terminal dividend lock-in account can be withdrawn in a lump sum anytime without surrendering the policy to accommodate the customer's financial needs at different life stages.
    
3. Flexible legacy planning with the Flexi Designation Option
   
   AXA understands that a customer's wealth goals and legacy plans may change at different life stages. In view of this, Max Wealth customers can apply for the flexible "split policy" option after the end of the second policy year. This means transferring part of the value of the policy to a separate policy of Max Wealth and designating another person as the insured, and the coverage period will continue until the new insured reaches the age of 138. This transfer process can be exercised an unlimited number of times[3], making legacy planning more flexible and laying a solid financial foundation for the insured's next generations and loved ones.
    
4. Simple application procedure requiring no physical health check, providing lifelong protection for your loved ones
   
   The insured of Max Wealth can unlock this wealth accumulation plan by completing simple application procedures without declaring their health information[8]. Max Wealth also provides lifelong protection. In the unfortunate case of the death of the insured, the designated beneficiary will receive a death benefit equal to the higher of up to 105%[9] of the total standard premium paid or guaranteed cash value, plus the non-guaranteed terminal dividend and the value of the terminal dividend lock-in account (if any). The designated beneficiary can also choose to receive the compensation either by a lump sum payment, payment by instalments or hybrid payment. This feature ensures the customer's wealth can benefit their families and the succeeding generations.