FTLife's latest "Ingenuity Inheritance" launched in August this year is a participating savings insurance, which is marketed as: the city's supreme/city's only/city's champion/withdrawal volume king, 567 withdrawals; So what's really going on with this product? Let's take a look at the analysis
Basics of insurance
The specific benefits of the policy
1. 8 currencies, free to convert
Starting from the 3rd Policy Anniversary, customers can start from USD, RMB, HKD, GBP, EUR, SGD, AUD, CAD every year; Choose to convert once among the 8 currencies, and unlimited conversions for life.
2. Choose your investment account freely
Starting from the 15th policy anniversary, you can choose [Enhanced], [Balanced] and [Conservative] in the basic plan every year; 3 types of investment plans to meet the financial needs of people with different risk tolerances. Fortis offers an interest rate of 4.25% on the Stable Asset Account.
That is, the following two accounts are allocated in different proportions:
Account A: "Reversionary Bonus + Cash Value of Terminal Dividend"
Account B: "Stable Asset Account".
100% of the assets in the "Stable Asset Account" are invested in fixed income securities, and the account value will be rolled over at a non-guaranteed interest rate, with the current interest rate of 4.25% (not guaranteed, it has been reached in the past few years), and the amount in the account can be withdrawn at any time. Friends who are interested in Hong Kong insurance may wish to take advantage of the opportunity to learn about it when you travel to Hong Kong. Welcome to consult HK-baoxian on WeChat
At the same time, it can provide one-stop overseas securities bank account opening, company registration, Hong Kong identity application, application for studying abroad in prestigious universities, special visa, language training, internship in famous enterprises, overseas immigration, overseas real estate and other information.
The above two parts are divided into three different strategies in different proportions
Comparison of configuration ratios
Enhanced: Account A = 100% configuration
Equilibrium: Account A: Account B = 6:4 configuration
Conservative: Account A: Account B = 2:8 configuration
Note the rules: From the 15th policy anniversary onwards, you can choose any of these three tranches every year. For example, you can choose to "increase" when the market is on the upside, and choose "conservative" when the market is down, so as to avoid risks and have a higher degree of investment freedom.
3. Unlimited changes of insured
Ingenuity Legacy Savings Insurance Plan is the fastest savings insurance in the market that can change the insured. Allows for an unlimited number of times of change of life insured from the 6th week of the policy; The policy will provide life protection to the new insured up to the age of 128, achieving "generational succession" and becoming a true "family heirloom".
4. Policy Continuation Option (to Beneficiary)
The policyholder may designate a beneficiary to become the new policyowner and the insured upon the death of the insured to continue the policy.
5. Policy splitting
【Ingenuity Legacy Savings Insurance Plan】Stipulates that from the end of the 5th policy year, you can split the policy once a year to adjust your asset planning and pre-allocation.
6. Support policy loans and automatic premium loans
7. Premium Waiver, Payer's Premium Waiver, Premium Holiday
Premium holiday: The function is equivalent to a two-year "reinstatement period" in China. During this period, the customer can suspend the payment of premiums, the policy will continue to be in force, and the accumulated dividends will continue to roll over, but the payment of dividends will be suspended. There is no need to pay the interest on the arrears of premiums when making supplementary payments, and only the premiums need to be paid normally.
Ingenuity Legacy Premium: Only policies paid for 5 years have a maximum of 2 years of leave; There is no vacation for 2 years.
8. One-stop medical services and free worldwide emergency assistance services
9. Death Benefit, Surrender and Compensation Payment Methods (with Small Trust Function)
Death Benefit: The higher of the following:
(1) 101% of the total premiums paid; or (2) the sum of the guaranteed cash value, the face value of the accumulated Reversionary Bonus (if any) and the face value of the Terminal Bonus (if any) of the Life Insured as at the date of death, plus the aggregate value of the Stable Asset Account (if any), less the indebtedness (if any).
Surrender Payment/Maturity Benefit: the sum of the Guaranteed Cash Value, Cash Value of Accumulated Reversionary Bonus (if any), Cash Value of Terminal Bonus (if any) and Aggregate Value of Stable Asset Account (if any), less any indebtedness (if any)
Optional Death Settlement and Surrender Method: (Quasi-small trust function)
The above has sorted out the rights and interests and functions of the relevant policies. Compared with other mainstream products, each has its own characteristics~ Although Fortis's ingenuity inheritance: There is no secondary insured arrangement (most insurance companies have), and WeChat consultation HK-baoxian does not have a second holder arrangement. However, the obvious advantage of unlimited changes to the insured and direct inheritance of the beneficiary makes it easier for the policy to achieve the purpose of succession.
The cash value of the policy
Total Cash Value = Guaranteed Cash Value + Non-guaranteed Amount (Reversionary Bonus + Terminal Dividend) if any
Take $100,000 * $500,000 total premium for 5 years as an example:
In the 7th year, the cash value is 510651, and the principal is recovered.
In the 10th year, the cash value is 631281; 1.26 times, IRR 2.95%;
In the 20th year, the cash value is 1300485; 2.6 times, IRR 5.44%;
In the 30th year, the cash value is 2420187; 4.84 times, IRR 5.77%;
In the 40th year, the cash value is 4261442; 8.52 times, IRR 5.79%;
60th year, current price 16267642; 32.54 times, IRR 6.18%;
100th year, current price 419656723; 839.31x, IRR7.11%
Take a 0-year-old baby, 5-year * $100,000 total premium of $500,000 as an example: compared with the cash value (non-guaranteed) of similar products of several mainstream insurance companies, Fortify: The policy income of ingenuity inheritance obviously presents two extremes: strong in the early stage, weak in the middle and late stages, and reversal in the final stage
As shown in the chart--- in the first 1-20 policy years, the expected cash value of FTLife Ingenuity Inheritance was significantly ahead; From the 21st year onwards, the growth rate slowed down significantly, the momentum was insufficient, and the gap widened until the 99th policy year passed. Sudden reversal in the 100th policy year ~ overtaking at the end of the 100th century?
5-year*$100,000 total premium: $500,000 for example
5-year*$50,000 total premium: 250,000 total premiums: Guaranteed vs. non-guaranteed IRR
The ingenuity and inheritance of the 2-year payment, the income trend is basically the same as that of the 5-year payment, which is strong in the early stage, weak in the middle and late stages, and strong in the late and late stages.
Summary of FTLife's core advantages:
Personal advice: FTLife is more suitable for the following two types of investors
1: For people who have higher requirements for cash value in the early stage, especially in the first 20 years;
2: People who need to withdraw the plan every year, pay attention to the liquidity of investment;
Fortis' new products are very good, focusing on the product strategy of early income, which is deeply loved by the market, coupled with the fast withdrawal plan, 7% can be withdrawn annually to life at the end of the 6th year of 5 years of payment, and 5% can be withdrawn from 5% to life at the end of the 2nd year of 2 years of payment, which is very suitable for lifelong cash flow planning, continuous cash flow, children's education, worry-free retirement, and family wealth inheritance. At present, Fortis' solvency is 342%, far exceeding the 150% threshold given by the regulator. In 2024, Hong Kong will also implement RBC (Risk-based Capital), which is similar to the mainland's C-ROSS regulatory system, which is stricter than the current one and more assured in terms of safety.
Fortis November Offer
Prepayment Offer: Guaranteed 5% interest rate
Time Limit: 30 September 2023 to 30 November 2023 (approved on or before 31 January 2024)
Offer: 5% guaranteed interest rate for prepayment
Savings Insurance "Ingenuity Inheritance (5 Years Payment)" limited-time offer
Time Limit: 30 September 2023 to 29 December 2023 (approved on or before 29 February 2024)
Offer: Up to 26% first-year premium refund
Source----- Official Account----- Milky Tom Yum Gong Soup