Maybank launches new investment-linked product

Published: Tuesday April 9, 2013 MYT 4:40:00 PM
From http://biz.thestar.com.my

KUALA LUMPUR: To tap into potential of the luxury goods market, Malayan Banking Bhd (Maybank) has launched Luxury Edition, a single premium closed-ended investment-linked insurance plan in Malaysia.

Maybank Luxury Edition offers a combination of insurance protection and investment for potentially higher returns, all within one single plan. It is the first such investment-linked plan in Malaysia which is tied to the luxury market.

The largest financial group in the country targets to achieve its cap of RM275 million in sales by the time the fund closes on 7 May 2013.

Luxury Edition is a 3-year single premium closed-ended investment-linked insurance plan that invests part of the collected premium in an option linked to a basket of six stocks within the luxury theme listed at various stock exchanges. The plan is tailored with potentially higher returns riding on the constant rise of the luxury goods market.

Maybank deputy president & head of community financial services, Datuk Lim Hong Tat said this new plan was designed to meet the increasing demand for attractive investment products that will fit the varying risk profiles of customer segments.

“Luxury Edition is capital guaranteed and has a number of other attractive features that will interest customers who believe in the growth potential of the luxury market,” he said in statement today.

Datuk Lim added that based on research, the luxury market has outgrown global GDP by more than two-fold over the last 10 years and this trend is expected to continue.

“In fact, growth statistics from emerging markets has clearly shown the increasing prominence of luxury spending in these markets,” he explained. “This positive growth has given us the opportunity to tap into the affluent market providing our customers with an insurance plan which offers exclusive advantages,” he said.

Datuk Lim also said that emerging markets are expected to make up over 70% of the global luxury goods market size by the year 2020, with growth expected to be driven by countries such as Macau, China and Russia.

“All these factors highlight Luxury Edition's unique features which we believe will drive demand for this new investment plan. It is risk-free as customers could enjoy potentially higher investment gains apart from the capital guarantee, while being protected at the same time,” he said.

The Luxury Edition plan, underwritten by Etiqa, requires a minimum investment of RM15,000, with additional investments in multiples of RM1,000.

With a short tenure of three years, the plan offers a potential gross cash payout of 8% at the end of the second and third policy year. Apart from the cash payout, the plan offers 100% capital back, 10% of the Single Premium at the end of the first policy year and the remaining 90% at maturity while giving customers life coverage of up to 130% of the capital during investment period.

Published: Tuesday April 9, 2013 MYT 4:40:00 PM
From http://biz.thestar.com.my

What you need know before buying an Investment-Linked Insurance Plan

by AIA Singapore
http://www.sias.org.sg/

Many people generally view Investment-Linked Insurance Plans (ILPs) as simply ‘investment’. However few are aware that ILPs also provides insurance protection. In other words, ILPs can help meet your protection and savings or investment needs.

There are broadly two types of ILPs:

Single premium ILPs - Generally provide a lower level of insurance coverage as compared to regular premium ILPs and tend to be more investment focused.

Regular premium ILPs – Allows you to vary the level of insurance coverage to meet your protection needs. You can choose to enhance your protection by adding on additional benefits for disability or critical illness coverage.

If you have just started a family and insurance protection is your priority, you may opt for a regular premium ILP to enjoy a higher protection cover while a smaller portion of your premium is channeled to fund your investments in the initial years.

If you are retiring and have no dependents relying on you for financial support, you may then adjust your policy to provide for a lower protection cover and thus allowing your retirement funds to accumulate faster.

However, do note that investment returns are not guaranteed. It depends on the performance of the investment-linked funds which is not guaranteed and the price of the units can rise or fall.

Here are three quick tips on what you need to know before buying an ILP:

Think long term

Ensure that you have sufficient liquidity before purchasing an ILP because ILPs need a long term investment horizon to potentially grow and accumulate the funds. It is not suitable for you if you are just investing for short term needs.

Use dollar cost averaging

This is a strategy where regular investment is made over specified periods regardless of market conditions. This can help to eliminate a common investment mistake that most investors make of trying to time the market. In the long term, dollar cost averaging can help mitigate the impact of market volatility to your investment.

Know your risk appetite

Performance of the investment in an ILP is not guaranteed and hence the entire risk of the investment value is borne by you. You should know your own risk tolerance level before purchasing an ILP.

Ultimately, ILPs can be a tool for personal protection and wealth creation. Before purchasing one, you should review your financial goals, protection needs and risk profile, among other things. A qualified insurance advisor will be able to advise and recommend you a suitable plan.

by AIA Singapore
http://www.sias.org.sg/

Manulife confident of better year

Thursday April 12, 2012

By DALJIT DHESI 

daljit@thestar.com.my

Article from The Star Online

It expects investment-linked funds to boost premiums

KUALA LUMPUR: Despite the current uncertainties and the volatile global economic environment Manulife Holdings Bhd is confident it will be able to perform better this year.

One of reasons for this bullish outlook is due to its investment-linked business.

Group chief executive officer Michael Chan said this year it expected its investment-linked products to contribute close to 80% of its new business premiums compared with 70% last year.

Last year, new business premiums stood at about RM62mil. Currently, he said the company was on track to meet its target for its new business premiums growth.

He said investment-linked plans were very transparent and offer customers the flexibility to manage their insurance plan according to their needs.

Customers were informed on all the fees and charges and the choice of investment-linked funds was made based on the customer's risk-reward appetite, he added.

Manulife has a range of investment-linked funds that caters to a diverse range of risk profiles. If a customer is inclined towards low risk, they could choose bond or fixed income funds such as the Manulife Income Fund.

Chan said its Manulife Managed and Equity Funds had been consistently strong performers in the local equity market.

The latest fund that Manulife launched was the Manulife FlexiInvest Fund, a fund ideal for investors who want to leave the asset allocation decision to the fund manager, he said adding that there would be more funds in the pipeline.

Chan added that the newly granted private retirement scheme (PRS) licence to Manulife Unit Trusts Bhd would help to grow the company's business in the coming years. The PRS would form another important line of business to the company, he noted.

Manulife Unit Trust Bhd, a wholly-owned subsidiary of Manulife Holdings Bhd, is one of the eight intermediaries which was recently selected by the Securities Commission as the country's provider of PRS.

As accuracy in the relevant processes for a PRS business is critical, he added Manulife would be investing substantially in its imaging workflow and dual entry systems. “Manulife globally has the expertise in pension and retirement schemes and we will capitalise on this expertise to boost our PRS business. We will also have a sophisticated customer website to enable investors to switch funds, analyse future and past contribution of various funds, among others,'' he said in an interview with StarBiz.

Meanwhile, Manulife Insurance Bhd senior vice-president and chief agency officer Jeffrie Teh Cheng Keat said it would intensify training to its agency force and teach its agents on how a product works as well as train them to become financial planners.

“Manulife has developed a comprehensive training system that will help agents become successful. We want to develop a professional agency force where customers can trust our agents to help them make key financial decisions,” Teh added.

Manulife has nine branches or regional support centres and 70 agency offices.

Article from The Star Online