AIA yesterday launched their new A$ Wealth Accumulator product.
AIA A$ Wealth Accumulator is a 4.5-year, non-participating single premium endowment plan. The guaranteed yields are as follows:
Single Premium Amount (A$)
$10,000 – $29,000 : 4.50% p.a.
$30,000 – $74,000 : 4.60% p.a.
$75,000 and above : 4.70% p.a.
As an example, a single premium of A$88k will give a guaranteed amount of A$108,204.80 on maturity.
On the other hand, if you already plan to hold on to A$ long term or intend to use A$ for future needs (eg education funding or retirement), then the currency risk would be less of an issue.
This product is available for a limited period only.
As a comparison, current foreign currency fixed deposit rates for A$ is about 3-4% (depending on amount) for a 12-month duration.
So the AIA (A$) Wealth Accumulator gives a slightly higher yield but a longer lock in period. If there is an early surrender of the plan, then there will also be a slight loss in capital.
Surrender value based on A$1000 invested
End of Policy Year, Cash Value (A$)
1, 888.30
2, 982.80
3, 1,084.10
4, 1,162.70
4.5 ,1,219.10