AXA Wealth Accelerate Investment-Linked Policy (ILP) Review

AXA Wealth Accelerate Investment-Linked Policy
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Last Updated on by Tree of Wealth

The AXA Wealth Accelerate is a regular premium ILP (Investment-Linked Policy) that protects your investments as well as investing into the funds of your choice in the form of units. Your premiums are invested 100% and to help boost your investments and cushion the external charges, there are Start-up Bonus and Loyalty Bonuses spread across and given annually. 

Features At a Glance for AXA Wealth Accelerate

Start-up Bonus

Receive Start-up Bonus of up to 200% annually during the Initial Contribution Period (ICP) of the initial 5 years. This helps to cushion the charges as well as amplifying your investments with the funds you choose.

The Start-up Bonus is based on the regular premium for the first policy year, and the number of Initial Contribution Period (ICP) of 3 to 5 premium years as well as premium will affect the Start-Up Bonus.

Applicable Start-up Bonus rates:

Minimum Investment Period (MIP)
 

10 years

15 years 20 Years 25 Years 30 years

Year 1

2% 15% 20% 25% 30%
Year 2 1% 25% 40% 40%

40%

Year 3

1% 25% 40% 40% 40%
Year 4 NA NA NA 40%

40%

Year 5

NA NA NA NA 50%
Total 4% 65% 100% 145%

200%

Source: AXA

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Power-up Bonus

The Power-up Bonus is up to 1.3% of the Account Value from the 15th policy year until the end of the Minimum Investment Period (MIP). The longer you put in to invest, the more bonuses the AXA Wealth Accelerate ILP will include the bonuses for you.

Here are the applicable Power-up Bonus rates are based on selected MIP:

Minimum Investment Period (MIP)
Premium Tier 10 Years 15 Years 20 Years 25 Years 30 Years
Less than S$9,600 / US$6,720  

NA

0.65% 1.00% 1.25%
S$9,600 / US$6,720 and more 0.70% 1.05% 1.30%

Upon Partial Withdrawal, premium reduction and premium holiday, no Power-up Bonus will be given to the Policy in the next subsequent twelve (12) Policy months.

Source: AXA

Loyalty Bonus

The third kind of bonus that is available and to accelerate your wealth growth, is the Loyalty Bonus. This will go up to 1.1% per annum (for the longest MIP plan) and will be based on your Account Value.

It will be given throughout the policy term and starts after the end of your Minimum Investment Period (MIP).

Applicable Loyalty Bonus rates are based on selected MIP:

Minimum Investment Period (MIP)

10 Years 15 Years 20 Years 25 Years

30 Years

0.00% 0.20% 0.60% 0.90%

1.10%

Upon Partial Withdrawal, no Loyalty Bonus will be given to the Policy in the next subsequent twelve (12) Policy months.

Source: AXA

Regular Withdrawal

Regular withdrawal from the plan is also allowed, at the end of the Minimum Investment Period

Regular Withdrawal Frequency

Minimum Regular Withdrawal Amount

S$

US$
Annual 1,200

840

Semi-Annual 600

420

Quarterly

300 210
Monthly 100

N.A

Source: AXA

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Partial Withdrawal

Partial Withdrawal is also available for this plan, with a minimum withdrawal amount of $1, 000 (for SGD) per withdrawal

  • During Minimum Investment Period (MIP): Any Partial Withdrawal is allowed from the Accumulation Units Account (AUA). There is a Partial Withdrawal Charge
  • After Initial Contribution Period (ICP) until end of MIP: Partial Withdrawal Benefit is free for up to first 5 Partial Withdrawal requests. Subsequent Partial Withdrawal requests will be subjected to a Partial Withdrawal Charge.
  • After Minimum Investment Period (MIP): Partial Withdrawal is allowed from both the Initial Units Account (IUA) and Accumulation Units Account (AUA). This is at no charge.

Summary of Fees and Charges

Account Maintenance Fee (AMF)

  • The Account Maintenance Fee is payable from the IUA during the MIP. There is no AMF after the end of MIP
  • Monthy AMF = (3.4% / 12) x the Account Value of the IUA as of the due date for the AMF
Investment Management Fee (IMF)
  • The IMF is payable during the Policy Term and as long as the Policy is in force
  • Monthly IMF (1% / 12) x the AUA Value as of the due date for the IMF

Switching Fee

  • The Switching Fee is currently waived. We reserve the right to impose a Switching Fee by notifying you in writing of any such variation with at least one (1) month prior notice

Redemption Fee

  • The Redemption Fee is currently waived. We reserve the right to impose a Redemption Fee by notifying you in writing of any such variation with at least on (1) month prior notice
 

 

 

  

 

Partial Withdrawal Charge (PWC)

  • Partial Withdrawal Charge is imposed upon each Partial Withdrawal Charge applies if the Partial Withdrawal is made after the end of the MIP

Partial Withdrawal Charge Rate :

Partial withdrawal made in the Policy Year

Partial Withdrawal Charge Rate

IUA

AUA

During ICP

N.A.

Partial withdrawal is not allowed

7%

After ICP to end of MIP N.A

Partial withdrawal is not allowed

7%

After end of MIP No Partial Withdrawal Charge

No Partial Withdrawal Charge

 

 

 

 Early Encashment Charge (EEC)

At any time during the MIP, an EEC will be imposed on the IUA upon any of the following events:

(i)   Surrender of the Policy,

(ii)  Termination of the Policy (other than Death of Terminal Illness of the Life Assured),

(iii) Regular Premiums due remain unpaid after the Grace Period during the first 36 months (for MIP 10, 15, 20), first 48 months (for MIP 25), or first 60 months (for MIP 30) from policy commencement date; or

(iv) Premium Holiday period is exceeded and Regular Premiums due remain unpaid after the Grace Period.

The EEC is calculated based on the following formula :

EEC =  applicable EEC rate x the Account Value of the IUA at the point the EEC is imposed

Bonus Recovery Charge (BRC)

  • BRC is imposed upon each Regular Premium reduction during the MIP
  • BRC wil be deducted from the IUA when the reduced Regular Premium takes effect (i.e. the Regular Premium due date immediately following the date on which the Company has approved the application)

Premium Charge

No charge for Regular Premium, Top up, Regular Single premium

Fund Management Charge

As per selected fund

Source: AXA

Versatile Investment Plan

  • Minimum Investment Period (MIP) – Select from 10, 15, 20, 25 or 30 years at the point of application. No change of MIP is allowed once the policy is issued
  • Policy Currency – Choose to invest in SGD or USD according to your preference
  • Choice of paying the premium Annually, Semi-Annually, Quarterly or Monthly
  • Premiums are able to start from $300/month
  • Loyalty Bonus 0.15% per annum after Account Maintenance Fee (AMF)
  • Charges of 3.4% per annum during Minimum Investment Period (MIP) + 1% Investment Management Fee per annum Throughout on the total Asset Under Management (AUM)
  • Able to add recurring single premium or top up to your investments any time you want to take advantage of the market.
  • Partial Withdrawal is free even during the Minimum Investment Period (MIP) up to 5 requests after Initial Contribution Period (ICP).
  • After MIP partial withdrawal is free.

Access to Best Diversified Investment Funds

For higher returns, range and versatility, choose from a wide range of funds across different regions, industries, sectors, type of securities (equities, bonds) as well as Accredited Investor Funds.

Huge range of funds also includes equities and dividend paying funds, which allows you to create yet another stream of income.

Most importantly, 100% of your premiums go into investing.

For a comprehensive list of funds, have a look here at the Fund List

Coverage to protect your investments

Aside from investment, as this is a product from an insurer, have the assurance of capital guaranteed in the event of Death and Terminal Illness.

Also, there is a Life Replacement Option that gives you the choice to replace the Life Insured between your spouse or child, to transfer and prolong your wealth even longer, very effective for legacy planning.

The protection element is especially useful because in the event if death or terminal illness occurs/ were to be diagnosed when the market is down, your capital will be protected and paid out to family members.

Guaranteed Issuance Option

Plan is guaranteed to be issued with no medical check-up/ underwriting, 100% hassle free application.

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How The AXA Wealth Accelerate ILP Works

AXA Wealth Accelerate Investment-Linked Policy

AXA Wealth Accelerate Investment-Linked Policy

AXA Wealth Accelerate Investment-Linked Policy

AXA Wealth Accelerate Investment-Linked Policy
source: AXA

Why You Should Dollar Cost Average

AXA Wealth Accelerate Investment-Linked Policy Dollar Cost Average DCA
source: AXA

Why We Like The AXA Wealth Accelerate

  • Life Replacement Option: Transfer policy to child or spouse
  • Wide Range of Entry Age
    • Entry Age (age next birthday) Life Assured: 1 month old – up to age 70
    • Policy Owner (Assured): Age 18 – 99
    • High Start Up Bonus up to 200%
    • Premiums are able to start from $300/month
    • Loyalty Bonus 0.15% per annum after Account Maintenance Fee (AMF)
    • Charges of 3.4% per annum during Minimum Investment Period (MIP) + 1% Investment Management Fee per annum Throughout on the total Asset Under Management (AUM)

Interested to learn more?

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The AXA Wealth Accelerate is Suitable If You Want:

  • Access to a range of strong retail funds as well as accredited investors funds
  • High flexibility of premium choices and top ups to your Investment-Linked Policy
  • High flexibility of cash withdrawal
  • Potential returns that are higher than participating endowment policies.
  • Wide range of choices for currency to invest
  • High Start-up bonus to complement your investment journey
  • Strong Investment tool for legacy planning
  • Guaranteed Issuance plan without the need for medical check-up and underwriting
  • Premium holidays and minimum premium lock in period (1 year only)

It would however be less suitable if you would like:

  • Returns that are guaranteed
  • High protection coverage for Health, Death, TPD and Critical Illness from Early, Intermediate to Advanced stage
  • Single Premium Investment
  • Guaranteed returns to withdraw in the event of a downward market

Conclusion for The AXA Wealth Accelerate

The AXA Wealth Accelerate is a competitive Investment-Linked Policy (ILP) in the market with strong retail and Accredited Investor funds. The AXA Wealth Accelerate invests 100% of your premium into the funds from day 1, unlike traditional ILPs which tend to invest 100% only after the 5th policy year (as well as having sub-funds managed by the insurers themselves). This main difference in fund management for traditional ILPs result in much longer break-even period (15 to 20 years at least).

Should you be considering in investing in Investment-Linked Policies, let us do the homework and help you compare across the different retirement plans in the market to save you time. Drop us an inquiry below and our professional experienced licensed FA advisor will get in touch with you shortly upon your request.

Our financial consultants will use your input and preferences to draft proposals according to your needs to get you the best investment plan. Your information provided will only be used for communication.

Fill in the form below and our friendly licensed FA advisor will get in touch with you. Based on your needs, a custom made solution will be adjusted only addressing your concerns.

 

No obligations, no hidden fees. All advice are of no charges.

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