When it comes to the current or future industrial effects of COVID-19, one thing remains certain, the pandemic has impacted and will continue to impact household finances for years to come. Having a plan, prioritising investment, and making efficient use of resources will be critical to your financial security.
The cost of living has increased by 58%, and this has been proven to be one of Singapore’s greatest challenges during this period. Other struggles include the inability to save sufficient funds, difficulty in finding work-life balance, poor job security and inadequate financial protection. As a result, there is a high need for financial solutions amongst the general population.
HSBC Life Wealth Harvest is a whole-life, Regular Premium Investment Linked Plan (ILP) that aims to provide long-term wealth accumulation through a diverse range of offering ILP Sub-Funds. This plan will help you combat unforeseen circumstances, gather a golden harvest for your future or leave a legacy for your loved ones.
HSBC Life Wealth Harvest helps you grow your wealth with 100% of regular premiums invested in units. With no account maintenance fee to policy after 11 years, your investment will continue to flourish! As a result, you will reap an abundance of wealth in the future and comfortably provide for your loved ones through a legacy plan.
Key Features of HSBC Life Wealth Harvest
- Accelerate your financial harvest
Kickstart your investment with a 35% Start-up Bonus on your 1st year premium, and enjoy continuing rewards with a Loyalty Bonus of 0.15% per annum on account value from the 10th year to the end of your policy.
- No Account Maintenance Fee after 11 years
Your policy does not incur any Account Maintenance Fee after 11 years, so as you contribute more premiums and stay invested longer, your cost of investment is reduced significantly.
- Transfer your plan to your loved ones
Life Replacement Option (LRO) gives you the flexibility to transfer your plan to your spouse or child to help your legacy planning.
- Diverse funds for a bigger harvest
Invest more confidently with a wide, diverse selection of over 90 unique investment-linked sub-funds from a range of industries and geographical sectors.
- Get started easily
No medical checkup required. Enjoy a hassle-free application process when you sign up for this plan.
Eligibility and Options for HSBC Life Wealth Harvest
Entry Age
- Life Assured: 1 month to 70 years old
- Policyholder: 18 to 99 years old
Policy Currency
- Choose to invest in SGD or USD according to your preference.
- Choose to pay Annually, Semi-Annually, Quarterly or Monthly.
This policy also comes with two types of rewards known as Start-up Bonus and Loyalty Bonus.
The Start-up Bonus will be assigned to the Regular Premium Account in the form of additional units based on the policyholder’s most recent investment option allocation instruction and chosen premium payment frequency.
As for the Loyalty Bonus, it begins on the first policy month from the 10th policy year onwards. The policyholder will receive the Loyalty Bonus every month for the remainder of the policy term, subject to the terms of the policy. The eligibility criteria are based on this formula: (0.15%/12) x the current Total Account Value of the Regular Premium Account = Loyalty Bonus.
During the policy term, you will also be shielded against death and terminal illness. HSBC Life Wealth Harvest also offers you a wide variety of investment-linked funds from multiple industries and regional sectors, all of which are managed by managers with investment and financial services expertise. You may invest in one (1) or up to ten (10) ILP Sub-Funds made available by this policy.
Real-life application of HSBC Life Wealth Harvest
Let’s put the plan into a real-life scenario. Imagine yourself as a new parent raising your first child at the age of 30 and you intend to put a monthly investment of S$1,000 until you are 65 years of age. Upon signing up, you will be entitled to a 35% Start-up Bonus (S$4,200) on your first-year regular premium, which will add more value to your initial investment.
From the 10th year onwards, you will receive a 0.15% per annum Loyalty Bonus credited into your account on a monthly basis. After the 11th policy year, you will be clear of account maintenance fees!
Your investments will start to flourish at a significant rate, which at that point you may decide to transfer the plan to your child. You will put the Life Replacement Option into action to allow your child to become the new Life Assured of this plan. Of course, you can still opt to pay for premiums on behalf of your child even when they are the official policyholder.
When you reach the age of 65, your account value could potentially grow to an estimate of one and a half million dollars. You can take a break from regular premium contributions and take a Premium Holiday!
As for your child, they can benefit from this plan during their own retirement too, even if you are no longer around. The policy may potentially grow to a value of more than 25 times the total premiums paid (S$10,535,491) if your child decides to surrender the policy at the retirement age of 65.
With the right help, embarking on an effective wealth planning journey does not have to be difficult. EΛOL is a leading Digital Financial Advisory Agency that specialises in five key pillars, Technology and Digital Automation, International Markets, Retirement and Legacy Planning, Seminar and Group Selling and Trust and Recommendation Systems.
With our expertise in Retirement and Legacy Planning, our team of seasoned financial advisers will be sure to answer any questions you have regarding HSBC Life Wealth Harvest. If you are in need of any assistance or if you would like to learn more, click here and one of our financial advisers will reach out to you.