MANILA, Philippines - Insurer AXA Philippines has launched an innovative variable life insurance product called 3G-Xceed or 3G-X, which officials say is ‘built for the crisis.’
3G-X gives policyholders three guarantees—guaranteed 100-percent capital protection, guaranteed returns of as high as 136-percent of their lump sum investment, and guaranteed life insurance coverage of at least 125 percent of their single premium. It also offers policyholders unlimited earning potential by giving them the chance to invest in the stock market.
“It’s a very powerful investment tool—it’s what investors are looking for right now. That’s why we think it’s the investment product that’s ‘built for the crisis,’” Rien Hermans, president and chief executive officer of AXA Philippines, said in a press release.
“What was clear was that investors were looking for guarantees on their investments—guarantees that their principal won’t incur a loss, guaranteed capital protection, and a reasonable guaranteed rate of return on their investment,” he continued.
Hermans said investors would rather give up the stock market in exchange for an acceptable but guaranteed rate of return on their investment, and they get this with the 3G-X.
Furthermore, 3G-X provides guaranteed life insurance coverage. “This feature is something that other investment products such as mutual funds or UITFs cannot offer but 3G-X can,” he said. “Every policy owner of 3G-X automatically gets coverage of at least 125 percent of their lump sum investment starting day one.”
He gave an example: “If an investor places P1 million in 3G-X, and just a day or a few days later he unfortunately passes away, his beneficiaries automatically get P1.25 million, tax-free! Unlike mutual funds and UITFs where the entire account value is made part of the estate of the departed and is therefore taxed, proceeds from a life insurance claim are all tax-free.”
“Lastly, it gives investors the chance to invest in the equities market and enjoy its exceedingly unlimited upside earning potential. This is on top of all the three guarantees we just mentioned,” he added.
AXA Philippines is a joint venture between the AXA Group, global expert in insurance and investments and one of the world’s largest corporations, and the Metrobank Group, one of the country’s largest financial conglomerates.