The AXA Wealth Accelerate is now known as the HSBC Life Wealth Accelerate.
The HSBC Life Wealth Accelerate is a regular premium, investment-linked policy (ILP) that speeds up your wealth build-up through several bonuses.
Here’s our review of the HSBC Life Wealth Accelerate to help you decide if it is the right option for you.
Read on.
My Review of the HSBC Life Wealth Accelerate
The HSBC Life Wealth Accelerate is a great policy that allows you to accumulate wealth over a period of time and receive funds, including interest earned during your golden years.
The risks are less because it’s a long-term investment, and you can exercise financial discipline through savings.
Without a doubt, this policy will empower you to cater to your financial expenses in the future and live a better tomorrow.
I particularly like the 30-day grace period when it comes to regular premium payment options.
I feel that this allows you, as the policyholder, to plan and avoid overdue payments.
The unlimited premium holiday option after the MIP is an excellent feature because you can continue accumulating your wealth without the additional pressure of making sure you’re consistently investing.
At the same time, you can also start receiving your accumulated wealth after the MIP.
Unlike some policies that may have a longer MIP, the HSBC Life Wealth Accelerate offers flexible MIP options of 10, 15, 20, 25, or 30.
Therefore, you don’t have to worry about the funds being held for long.
Another thing I like about this policy is the bonus feature which lets you enjoy interest on invested funds.
With the Start-Up Bonus, you can start reaping benefits early in the policy.
While I appreciate the benefits offered by the AXA Wealth Accelerate, it lacks optional riders, which help enhance your coverage.
For instance, you may not enjoy premium waivers in case of an accident.
In addition, the minimum investment amount is S$300 per month which is higher than other policies on the market.
For example, Manulife InvestReady III and Singlife’s Savvy Invest start their minimum investment amount at S$200 – which is way more manageable for most.
The Manulife InvestReady III and Singlife Savvy Invest were also ranked in our list of the best investment plans in Singapore multiple times, and for a good reason.
Another drawback of the HSBC Life Wealth Accelerate is the 3.4% compulsory fee, which is a bit steep when you compare it to other options.
Given that you’ll be investing $300/month and for the next 10 years minimally, it’s best to research any market alternatives that might suit your goals better.
The last thing you want is to realise that the HSBC Life Wealth Accelerate might not be for you or that there are better options you could’ve chosen after years of making payments.
I recommend starting off your research by reading our post on the best investment plans in Singapore – easily one of the most popular posts loved by many of our readers.
After understanding your choices, you should get a second opinion from an unbiased financial advisor to understand whether the HSBC Life Wealth Accelerate is the best option for you.
This way, you get an objective analysis of your needs and potentially compare plans in the market.
If this interests you, we partner with MAS-licensed financial advisors who can help you with this. They’ve helped thousands of our readers in similar situations as you are in now, and will definitely be able to guide you to make better financial decisions.
Click here for a free, non-obligatory second opinion.
Let’s dive into the HSBC Life Wealth Accelerate in detail:
Criteria
- Life Assured: One month to 70 years
- Policyholder: 18 to 99 years.
- Minimum investment of $300
Coverage Period
The coverage lasts as long as the policy is still in force. In other words, it covers life up to 99 years.
General Features
Premium Allocation
Before we share with you the premium allocations, you’ll need to understand the initial contribution period (ICP) based on the Minimum Investment Period (MIP) you’ll be choosing.
| Minimum Investment Period | Initial Contribution Period |
| 10, 15, 20 years | First 36 months |
| 25 years | First 48 months |
| 30 years | First 60 months |
AXA Wealth Accelerate comprises 2 accounts for premium allocation as shown in the table below;
| Initial Units Account (IUA) | Accumulation Units Account (AUA) | |
| Regular Premium | Regular Premium during ICP | Regular Premium after ICP |
| Other Premiums | N/A | Top-Up Premium and Recurring Single
Premium (RSP) (if any) |
The following allocations are held in the AUA account:
- Power-up bonuses
- Loyalty bonuses
- Top-up premiums
- Recurring single premiums
- Regular premiums after the ICP period.
In contrast, the IUA accounts hold the following allocations;
- Start-up bonuses
- Regular premiums
Premium Payment Terms & Options
You can choose to pay;
- Month
- Semi-annually
- Quarterly
- Annually
The table below shows the minimum amount that you should pay depending on the payment frequency.
| Payment frequency | Minimum Investment Amount |
| Monthly | S$300 |
| Semi-annually | S$1800 |
| Quarterly | S$900 |
| Annually | S$3600 |
Notably, AXA can change the minimum investment amount anytime during the policy.
Also, you cannot reduce the premium during the ICP.
Minimum Investment Period
AXA offers a flexible choice of the minimum investment period (MIP) which ranges from 10, 15, 20, 25, or 30 years.
| Minimum Investment Period (Years) | Maximum Entry Age |
| 10 | 70 |
| 15 | 65 |
| 20 | 60 |
| 25 | 55 |
| 30 | 50 |
Plan Flexibility
Top-ups and Recurring Single Premium
Top-ups and Recurring Single Premium (RSP) are allowed during the policy.
Tops ups are allowed in multiples of S$100 and the minimum top-up amount is S$5,000.
On the other hand, an RSP is allowed from S$100 per month. However, you can only exercise this in multiples of S$100.
Grace Period
AXA Wealth Accelerate allows a 30 day grace period from the regular premium due date. However, this excludes Top-up premiums and RSP.
In addition, dividends are not paid during the grace period.
Premium Holiday
Another feature of the AXA Wealth Accelerate plan is the Premium Holiday.
This allows you to stop making your payments while it’s still running should you want or need to temporarily do so.
Notably, the premium holiday is not allowed during the ICP if you fail to pay your regular premiums immediately after the grace period.
After the ICP to the end of the MIP, you can get a premium holiday for a maximum of 60 months.
However, you’ll have to forfeit your Power-Up bonuses.
After the end of the MIP, you will be able to get unlimited Premium Holidays.
Life Replacement Option
The Life Replacement Option allows you to replace the assured with their spouse or a child below 18 years old.
Therefore, your dependents can take over the policy and continue with the premium payments in case of demise during the MIP.
Partial Withdrawal
Partial withdrawals are allowed, with a minimum of $1,000 per withdrawal.
During the Minimum Investment Period, you may withdraw from the Accumulation Units Account at a charge.
From the end of the ICP to the end of the MIP, you will not be charged for partial withdrawals, at least for up to the first 5 withdrawals.
Subsequent requests, however, will incur a fee.
Withdrawals from the AUA and IUA are free after the MIP.
The maximum amount you can withdraw for each withdrawal is capped at 2 times the annualised regular premium.
Therefore, if you reduce your annual regular premium, this too will be capped at two times the revised amount.
As earlier mentioned, you’ll not receive Power-up and Loyalty bonuses in the next 12 months after a partial withdrawal.
Additionally, every partial withdrawal differs depending on your MIP period selected, as highlighted in the table below;
| MIP | 10 | 15 | 20 | 25 | 30 |
| Maximum partial withdrawals allowed | 2 | 2 | 2 | 3 | 5 |
To understand how this works, have a look at the Partial Withdrawal charges table below.
| Partial withdrawal during the policy year | Partial withdrawal rate | |
| IUA | AUA | |
| During the ICP | Not allowed | 7% |
| After the ICP up to the end of the MIP | Not allowed | 7% |
| After the MIP | There is no partial withdrawal fee | There is no partial withdrawal fee |
Regular Withdrawals
Regular Withdrawals are allowed after the end of the MIP as shown on the table below.
| Frequency of the withdrawal | Minimum amount allowed |
| Annual | S$1200 |
| Semi-annually | S$600 |
| Quarterly | S$300 |
| Monthly | S$100 |
Protection
AXA Wealth Accelerate has multiple benefits including Death and Terminal Illness
Death Benefit
AXA Wealth Accelerate will pay the Death Benefit if death occurs before the policy anniversary close to the assured 60th birthday.
In this case, they will pay;
- 101% of the total value
- 15% of the total account value minus Top-ups and RSPs. As well, this amount is capped at S$500,000 minus any outstanding charges.
If death occurs on or after the policy anniversary to the insured’s 66th birthday, you will receive 101% of the Total Account Value minus any charges and outstanding fees.
Terminal Illness Benefit
The Terminal Illness Benefit applies upon diagnosis with a terminal illness while the policy is still running.
In this case, you will receive a lump sum amount of S$3 million in value or the Death Benefit, whichever is lower.
Having said that, the maximum TI Benefits on the life assured is capped at S$3 million.
Upon paying the entire Death Benefit, the policy comes to an end.
Key Features
AXA Wealth Accelerate offers rewards or bonuses throughout your investment journey.
Start-up Bonus
You can receive a Start-up Bonus of up to 200% of your annual premium throughout the ICP.
This will help you to get started on your investment journey.
The Start-up bonus is equal to the prevailing rate multiplied by the regular premium for the first policy year.
Here is a table to illustrate the Start-up bonus during the MIP.
| Minimum Investment Period (MIP) | 10 | 15 | 20 | 25 | 30 |
| First-year rate | 2% | 15% | 20% | 25% | 30% |
| Second-year rate | 1% | 25% | 40% | 40% | 40% |
| Third-year rate | 1% | 25% | 40% | 40% | 40% |
| Fourth-year rate | – | – | – | 40% | 40% |
| Fifth-year rate | – | – | – | – | 50% |
| Sum | 4% | 65% | 100% | 145% | 200% |
Power-up Bonus
There is a Power-up Bonus of 1.3% of the Account Value from the 15th policy year up to the end of the MIP.
Power-up Bonus is equal to the prevailing rate per month multiplied by the current Total Account Value.
Notably, the rates are only for 20, 25, and 30-year MIPs, as shown in the table below.
| Minimum Investment Period (MIP) |
10 |
15 |
20 |
25 |
30 |
| Premium tier less than S$9,600 | – | – | 0.65% | 1.00% | 1.25% |
| Premium tier more than or equal to S$9,600 | – | – | 0.70% | 1.05% | 1.30% |
Notably, you will not receive the power-up bonus for 12 months under the following circumstances;
- When you partially withdraw from the policy
- During premium reduction
- During premium holiday
Loyalty Bonus
You can receive a Loyalty Bonus of up to 1.1% of the Account Value through the term of the policy beginning after the end of the MIP.
The Loyalty Bonus is calculated by multiplying the applicable rate per month by the current total account value.
Like the other bonuses, the applicable rate is based on the MIP, as shown below.
| Minimum Investment Period (MIP) |
10 |
15 |
20 |
25 |
30 |
| Premium tier less than S$9,600 | 0.00% | 0.20% | 0.60% | 0.90% | 1.10% |
Like the power-up bonus, you will not receive the Loyalty Bonus for 12 months if you decide to partially withdraw.
Fund Offerings
The AXA Wealth Accelerate has over 90 unique funds from you to choose from and invests them directly into the fund.
AXA Wealth Accelerate Top 10 Performing Funds
The AXA Wealth Accelerate invests in unit trusts.
| Name of Fund | 5-Year Historical Average (%) |
| BlackRock GF World Technology A2 USD | 29.46 |
| Franklin Technology A Acc USD | 26.34 |
| AB FCP I – Sustainable US Thematic Portfolio AH SGD | 20.01 |
| Threadneedle Global Smaller Companies AE USD | 17.82 |
| Robeco Global Consumer Trends Equities D USD | 17.68 |
| Pictet Premium Brands HP SGD | 17.33 |
| Schroder ISF Taiwanese Equity A Acc NAV | 16.81 |
| Amundi Pioneer US Equity Fundamental Growth A USD | 16.64 |
| JPM Greater China A Acc NAV USD | 16.13 |
| Fundsmith Equity R Acc EUR | 15.99 |
| Pictet Security P USD | 14.04 |
It is crucial to note that historical performance does not guarantee future returns. Furthermore, these are 5-year annualised returns. Always do your analysis or talk to a trusted financial advisor if you’re unsure.
Fees Involved
Besides the regular premiums, the policy attracts other charges or fees.
Account Maintenance Fee (AMF)
The AMF will be deducted from your IUA during the Minimum Investment Period.
However, this charge ceases to exist after the end of the MIP.
The monthly AMF equals 3.4% divided by 12 and then multiplied by the IUA Account Value as per the AMF due date.
Investment Management Fee (IMF)
The IMF is payable as long as the policy is still in force.
The monthly IMF is calculated as 1% divided by 12 months and then multiplied by the AUA value at the IMF due date.
Switching Fee
The company can impose a Switching Fee any time during the tenure of the notice through a one-month notice.
Currently, the charge is waived.
Redemption Fee
A Redemption Fee can be imposed by the company at any time during the notice period by giving one month’s notice. At present, this fee is waived.
Early Encashment Charge (EEC)
During the MIP, an Early Encashment Charge (ECC) can be applied on the IUA in certain events.
- During the policy’s surrender
- During policy’s termination due to other reasons other than terminal illness or death.
- If you exceed the premium holiday period and your regular premiums are due even after the grace period.
- If you fail to pay the regular premiums after the grace period from the policy commencement date for the following circumstances;
- The initial 36 months for MIP 10,15,20.
- Initial 48 months for MIP 25
- Initial 60 months for MIP 30
In all the above cases, the EEC is equal to the prevailing EEC rate multiplied by the IUA’s Account Value at the point where the EEC is applied.
Bonus Recovery Charge (BRC)
The Bonus Recovery Charge is imposed on every regular premium reduction that occurs during the MIP.
In other words, it’s charged from your IUA when the reduced regular premium is formally applied.
Premium Charge
There are no fees charged for Top-up, regular single premium, and regular premium.
Fund Management Charge
This charge depends on the funds in your policy.
Compulsory Fees
Like most financial products, investment-linked policies (ILPs) come with costs. Typically these are commissions and fees which can add up and reduce the future investment value.
AXA Wealth Accelerate charges a compulsory fee of 3.4% on your IUA and 1% on your AUA.
How much will I receive upon maturity of the AXA Wealth Accelerate?
I involved a financial advisor from AXA to help with the calculation.
In this case, assume you invest the minimum amount of S$300 monthly for 30 years and let it compound for that period. In addition, the funds perform at 10% p.a with no partial withdrawals or premium holidays.
Here is a table and graph to illustrate what you will expect.
| Year | IUA Opening Balance | Account Maintenance Fees | IUA Closing Balance | AUA Opening Balance | Investment Management Fees | AUA Closing Balance | Total Account Value |
| 1 | $ 3,600.00 | $ 122.40 | $ 3,825.36 | $ – | $ – | $ – | $ 3,825.36 |
| 2 | $ 7,425.36 | $ 252.46 | $ 7,890.19 | $ – | $ – | $ – | $ 7,890.19 |
| 3 | $ 11,025.36 | $ 374.86 | $ 11,715.55 | $ – | $ – | $ – | $ 11,715.55 |
| 4 | $ 14,625.36 | $ 497.26 | $ 15,540.91 | $ – | $ – | $ – | $ 15,540.91 |
| 5 | $ 18,225.36 | $ 619.66 | $ 19,366.27 | $ – | $ – | $ – | $ 19,366.27 |
| 6 | $ 19,366.27 | $ 658.45 | $ 20,578.60 | $ 3,600.00 | $ 36.00 | $ 3,920.40 | $ 24,499.00 |
| 7 | $ 20,578.60 | $ 699.67 | $ 21,866.82 | $ 7,520.40 | $ 75.20 | $ 8,189.72 | $ 30,056.53 |
| 8 | $ 21,866.82 | $ 743.47 | $ 23,235.68 | $ 11,789.72 | $ 117.90 | $ 12,839.00 | $ 36,074.68 |
| 9 | $ 23,235.68 | $ 790.01 | $ 24,690.23 | $ 16,439.00 | $ 164.39 | $ 17,902.07 | $ 42,592.30 |
| 10 | $ 24,690.23 | $ 839.47 | $ 26,235.84 | $ 21,502.07 | $ 215.02 | $ 23,415.76 | $ 49,651.60 |
| 11 | $ 26,235.84 | $ 892.02 | $ 27,878.20 | $ 27,015.76 | $ 270.16 | $ 29,420.16 | $ 57,298.36 |
| 12 | $ 27,878.20 | $ 947.86 | $ 29,623.38 | $ 33,020.16 | $ 330.20 | $ 35,958.95 | $ 65,582.33 |
| 13 | $ 29,623.38 | $ 1,007.19 | $ 31,477.80 | $ 39,558.95 | $ 395.59 | $ 43,079.70 | $ 74,557.50 |
| 14 | $ 31,477.80 | $ 1,070.25 | $ 33,448.31 | $ 46,679.70 | $ 466.80 | $ 50,834.19 | $ 84,282.51 |
| 15 | $ 33,448.31 | $ 1,137.24 | $ 35,542.18 | $ 54,434.19 | $ 544.34 | $ 59,278.83 | $ 94,821.01 |
| 16 | $ 35,542.18 | $ 1,208.43 | $ 37,767.12 | $ 62,878.83 | $ 628.79 | $ 68,475.05 | $ 106,242.17 |
| 17 | $ 37,767.12 | $ 1,284.08 | $ 40,131.34 | $ 72,075.05 | $ 720.75 | $ 78,489.73 | $ 118,621.07 |
| 18 | $ 40,131.34 | $ 1,364.47 | $ 42,643.56 | $ 82,089.73 | $ 820.90 | $ 89,395.72 | $ 132,039.28 |
| 19 | $ 42,643.56 | $ 1,449.88 | $ 45,313.05 | $ 92,995.72 | $ 929.96 | $ 101,272.34 | $ 146,585.39 |
| 20 | $ 45,313.05 | $ 1,540.64 | $ 48,149.65 | $ 104,872.34 | $ 1,048.72 | $ 114,205.97 | $ 162,355.62 |
| 21 | $ 48,149.65 | $ 1,637.09 | $ 51,163.81 | $ 117,805.97 | $ 1,178.06 | $ 128,290.71 | $ 179,454.52 |
| 22 | $ 51,163.81 | $ 1,739.57 | $ 54,366.67 | $ 131,890.71 | $ 1,318.91 | $ 143,628.98 | $ 197,995.65 |
| 23 | $ 54,366.67 | $ 1,848.47 | $ 57,770.02 | $ 147,228.98 | $ 1,472.29 | $ 160,332.36 | $ 218,102.38 |
| 24 | $ 57,770.02 | $ 1,964.18 | $ 61,386.43 | $ 163,932.36 | $ 1,639.32 | $ 178,522.34 | $ 239,908.76 |
| 25 | $ 61,386.43 | $ 2,087.14 | $ 65,229.22 | $ 182,122.34 | $ 1,821.22 | $ 198,331.22 | $ 263,560.44 |
| 26 | $ 65,229.22 | $ 2,217.79 | $ 69,312.56 | $ 201,931.22 | $ 2,019.31 | $ 219,903.10 | $ 289,215.67 |
| 27 | $ 69,312.56 | $ 2,356.63 | $ 73,651.53 | $ 223,503.10 | $ 2,235.03 | $ 243,394.88 | $ 317,046.41 |
| 28 | $ 73,651.53 | $ 2,504.15 | $ 78,262.12 | $ 246,994.88 | $ 2,469.95 | $ 268,977.42 | $ 347,239.54 |
| 29 | $ 78,262.12 | $ 2,660.91 | $ 83,161.33 | $ 272,577.42 | $ 2,725.77 | $ 296,836.82 | $ 379,998.14 |
| 30 | $ 83,161.33 | $ 2,827.49 | $ 88,367.22 | $ 300,436.82 | $ 3,004.37 | $ 327,175.69 | $ 415,542.92 |
| Total Invested | $ 108,000.00 |
| Total Fees Paid | $ 65,992.16 |
| Total Investment Value after 30 years | $ 415,542.92 |
| Interest Earned | $ 307,542.92 |
| ROI | 285% |
Note that bonuses are not included in calculations, meaning the returns you see here are understated.
We also calculated the fees after 12 months, which understates the total fees you incur as the AXA Wealth Accelerate charges these fees monthly.
When comparing with other Investment Linked Policies (ILPs), it’s important to take note of the amount you want to invest, MIP, and payment frequency for a balanced opinion.
Because fund performances are hard to predict, you’ll find that different ILPs have varying returns.
Therefore, the rate of returns and fees charged are important aspects to consider when choosing an ILP.
