AXA Insurance announced today the launch of AXA Private Wealth VUL, a jumbo whole-of-life plan designed for the high net worth market. Featuring greater flexibility than Universal Life plans, and a “Joint Life Last-to-Die” feature, AXA Private Wealth VUL is an effective wealth management tool to support strategies to maximize wealth accumulation, provide instant liquidity, meet personal liabilities, support business continuity and facilitate additional wealth and security for individuals and families.
Similar to Universal Life plans, AXA Private Wealth VUL is first and foremost a whole-of-life protection product, providing death benefit and terminal illness protection, along with policy fund growth potential as well as a transparent fee structure. Through strong reinsurance partnerships, AXA has the ability to underwrite large amounts of life coverage through the VUL solution. AXA Private Wealth VUL also offers flexible access to the policy fund for liquidity. Policy owners will have access to investment profits via cash withdrawals without incurring Surrender Charges.
One of the key features of AXA Private Wealth VUL is that premium can be paid using cash and/or client assets held by a selected custodian bank, reducing the need to liquidate investments for the premium payment. As client assets are treated as premium-in-kind, the solution complements a bank or asset manager’s service offering by allowing for the investment portfolio to remain invested with Assets Under Management (AUM) intact, supporting more holistic financial planning. Similarly, insurance benefits are payable in cash/or by transfer of assets.
Beyond premium payment flexibility, AXA Private Wealth VUL boasts a unique feature that supports legacy and estate planning, as well as to open up the possibility of high life coverage to uninsurable risks – “Joint Life Last-to-Die”, also known “Second-to-Die” or “Survivorship” life insurance. It is a special policy configuration that allows two lives to be jointly insured, where the death benefit will not be paid to the beneficiary until the death of the last insured. Beside lowering the cost of insurance rates initially and ensuring a smoother progression of premium rates, this feature will result in premium savings especially in situations where one of the insureds has been medically rated as carrying greater health risks. As long as one life is insurable at standard or substandard rates, an uninsurable life can be added onto the policy at an affordable rate of premium. AXA is one of the first providers in Singapore to offer Joint Life Last-to-Die with high insurance coverage for life.
“While Universal Life is an attractive wealth management tool for high net worth individuals, savvy investors with higher risk appetites are looking beyond Universal Life to unlock greater growth potential of their policy fund values,” said Neil Frith, Managing Director, Life Insurance, AXA Insurance. “With AXA Private Wealth VUL, we have demonstrated once again our ability to provide innovative solutions that address our clients’ wealth enhancement and legacy planning needs.”
Leveraging AXA’s unique position as a composite insurer in Singapore, AXA Private Wealth VUL integrates complementary solutions from AXA Art and AXA Assistance to help clients address their business continuity and succession planning needs. Offshore clients will also be accorded additional benefits as a result of Singapore’s extensive network of double tax treaties.
Individuals interested in AXA Private Wealth VUL must undergo detailed medical and financial underwriting, including a review of insurable interest, justification for coverage and source of wealth.
At this time, AXA Private Wealth VUL is available to HNW individuals (Accredited Investors) only. The policy is available in multiple currencies and the minimum initial premium is USD 1 million.