AIA has re-launched AIA Wealth Accumulator 2, a non-participating Single Premium endowment plan that provides financial protection against death and guaranteed returns on capital at maturity.
Key Highlights of The Plan
- Provides an effective yield of 1.68% per year
- Capital guaranteed at maturity
- Guaranteed Issuance without any medical underwriting
- Short policy term of 4 years
AIA used to offer this product at 2.55% Guaranteed interest for 5 years in 2009. It was snapped up within a day. The current 1.68% interest is much lower than what was offered, nearly as low as NTUC’s Capital Plus which last offered 1.4% interest for 2 years in 2011.
It is worth watching how the market will react to this offer. It is still too early to jump into conclusion.
In 2010, when AIA launched A$ Wealth Accumulator and offered 4.7% interest for 4.5 years, many have criticized that the interest rate was not attractive. Today, with the Reserve Bank of Australia cut its policy interest rate to an all-time low of 2.5%, people who hold A$ cannot find a better place to put their money.
This plan is available on a limited tranche basis. The offer period is till 30 August 2013 (Friday), 5pm or when tranche size is met, whichever is earlier.
You can contact me for more information of such products.