Investment Linked Plan

HSBC Life Wealth Accelerate: Turbocharge Your Financial Future

Are you looking for a way to rev up your investment returns while securing your retirement ? HSBC Life Wealth Accelerate might be the high-performance vehicle you need to drive your financial future forward. This flexible investment-linked plan is designed to help you accelerate your wealth growth while providing the protection you need . Let's take a deep dive into what makes this plan unique and how it can benefit you.

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What is HSBC Life Wealth Accelerate?

HSBC Life Wealth Accelerate is an investment-linked insurance plan that combines wealth accumulation with life protection . It's designed for those who want to grow their wealth aggressively while maintaining the flexibility to adapt to life's changing circumstances. This plan offers a diverse selection of investment funds, multiple bonuses, and the option to receive dividends in cash or reinvest them for further growth .

Key Features That Set HSBC Life Wealth Accelerate Apart

Diverse Investment Options

  • Choose from nearly 70 unique investment-linked funds

  • Invest in various industries and geographical sectors

  • Option for dividend-paying sub-funds

Multiple Bonuses to Boost Your Returns

  • Start-up bonus of up to 30% of annual premium in the first year

  • Power-up bonus of up to 1.3% p.a. of account value from year 15

  • Loyalty bonus of up to 1.1% p.a. of account value throughout the policy term

Flexibility to Suit Your Needs

  • Choose from 2 Minimum Investment Period (MIP) options: 25 or 30 years

  • Invest in SGD or USD

  • Start from as low as S$300 monthly premium

  • Add recurring single premiums or top-ups anytime

Access to Your Funds

  • Up to 7 free partial withdrawals after the Initial Contribution Period (ICP)

  • Take premium holidays of up to 84 months during MIP

Protection for You and Your Loved Ones

  • Coverage for death and terminal illness

  • Life replacement option for wealth transfer

Why compare HSBC Life Wealth Accelerate with other Investment Linked Plan options through Whatins?

Traditional Approach

  • Limited to one company's fund options
  • Only hear about advisor's preferred funds
  • Single perspective on investment strategy

Whatins Advantage

  • Compare fund options across multiple insurers
  • Get different views on investment strategies
  • See how different advisors approach fund selection
  • Understand varied fee structures

How Does HSBC Life Wealth Accelerate Work?

Let's break down the key components of this plan:

Investment Component

You can choose from a wide range of investment-linked funds to grow your wealth. The performance of these funds will directly impact your account value.

Bonus Structure

  • Start-up bonus: Receive up to 200% of your annual premium across the first 5 policy years

  • Power-up bonus: Get up to 1.3% p.a. of your account value from year 15 until the end of your MIP

  • Loyalty bonus: Enjoy up to 1.1% p.a. of your account value throughout the policy term after MIP

Premium Payment

  • Regular premiums: Pay monthly, quarterly, semi-annually, or annually

  • Top-ups: Add lump sum investments anytime

  • Recurring single premiums: Set up additional monthly investments (for SGD policies only)

Flexibility Features

  • Premium holiday: Take breaks from premium payments for up to 84 months during MIP

  • Partial withdrawals: Access your funds when needed, with up to 7 free withdrawals

  • Premium reduction: Reduce your premiums by up to 25% after the ICP

Protection Benefits

  • Death benefit: Your beneficiaries receive 101% of the total account value, plus an additional amount before age 66

  • Terminal illness benefit: Receive an advance payment of the death benefit

Real-Life Scenario: Meet Denise

Let's look at how HSBC Life Wealth Accelerate could work for someone like Denise:

Denise is 30 years old and wants to start planning for her retirement. She chooses HSBC Life Wealth Accelerate with a 30-year MIP, paying an annual premium of S$12,000. She selects a dividend-paying fund with a potential 4% dividend payout and opts to reinvest the dividends.

Here's how her investment could grow:

  • At age 65 (after 35 years): Her account value could reach S$1,499,628
  • At age 75 (after 45 years): Her account value could be S$1,967,291 , even after 10 years of dividend payouts

Note: These projections assume an 8% investment return and no withdrawals or premium holidays.

Costs and Charges

It's important to understand the fees associated with HSBC Life Wealth Accelerate:

Account Maintenance Fee (AMF)

  • 3.4% per annum of the Initial Units Account (IUA) value during MIP

  • No AMF after MIP ends

Investment Management Fee (IMF)

1% per annum of the Accumulation Units Account (AUA) value throughout the policy term

Early Encashment Charge (EEC)

Applies if you surrender the policy or stop paying premiums during the first 48 months (for 25-year MIP) or 60 months (for 30-year MIP)

Bonus Recovery Charge (BRC)

Applies if you reduce your regular premium during MIP

Partial Withdrawal Charge (PWC)

  • 7% of the withdrawal amount from the AUA during MIP

  • No charge for the first 7 withdrawals after ICP till end of MIP

Fund Management Charge

Varies depending on the selected funds

Pros and Cons

Pros

  • High potential returns with multiple bonuses

  • Flexibility to adjust premiums and make withdrawals

  • Wide range of investment options

  • Option for dividend payouts

  • Life protection included

Cons

  • Complex fee structure

  • Potential for investment losses

  • Early encashment can be costly

  • Requires long-term commitment for best results

Who Is HSBC Life Wealth Accelerate Suitable For?

This plan might be a good fit if you:

  • Have a long-term investment horizon (25-30 years or more)
  • Want the potential for high returns and are comfortable with investment risks
  • Desire flexibility in your investment and premium payments
  • Are looking for a combination of wealth accumulation and life protection

Frequently Asked Questions

Can I change my investment funds later?

Yes, you can switch funds, but a fee may apply in the future.

What happens if I need to stop paying premiums temporarily?

You can take a premium holiday for up to 84 months during MIP.

Is there a minimum investment amount for top-ups?

Yes, the minimum is S$5,000 or US$3,500.

Can I reduce my premiums?

Yes, you can reduce your premiums by up to 25% after the ICP, subject to minimum premium requirements.

What happens to my policy after the MIP ends?

Your policy continues with more flexibility and reduced charges.

Conclusion

HSBC Life Wealth Accelerate offers a powerful combination of investment potential, flexibility, and protection . Its unique bonus structure and diverse fund options can help turbocharge your wealth accumulation, especially if you have a long-term investment horizon. However, it's important to carefully consider the fees and commitment required.

As with any significant financial decision, it's crucial to align this plan with your overall financial goals and risk tolerance. While the potential for high returns is attractive, remember that investment-linked plans come with market risks.

Ready to accelerate your wealth journey? Don't make this decision alone. Get expert insights tailored to your unique financial situation. Sign up now to receive 5 personalized proposals from qualified financial advisors who can help you determine if HSBC Life Wealth Accelerate is the right fit for your financial future.

Click here to get 5 expert opinions on how HSBC Life Wealth Accelerate can fit into your financial plan

By consulting with multiple experts, you'll gain a comprehensive understanding of how this plan can work for you, and ensure you're making the best decision for your financial future. Don't leave your wealth acceleration to chance – get the expert advice you deserve today.

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