Opinions on HSBC Life Variable Annuity plan

Hi, recently I got to know about this product through a financial advisor, i.e. HSBC Life Variable Annuity plan.

https://www.hsbc.com.sg/insurance/products/savi...

Was wondering if anyone here have signed up for this?

Would it be good considering the gains are locked in during down market, and further increased during up market, with the fact that the premium charge is 8% and expenses fee is 2.45% per annum? Feels to me the charges are quite high and might have an impact on the gains earned.

Otherwise, any kind souls who can help intro something similar with lesser expense fee?

Thanks!

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Choon Yuan Chan

01 Feb 2023

Not good

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Benjamin Low

25 Jan 2023

Associate Director of Sales at Manulife Financial Advisers

One major disadvantage of the HSBC Life Variable Annuity plan is that it has relatively high charges and expenses fee (8% premium charge and 2.45% per annum expenses fee). These charges can eat into your potential gains and may negatively impact your overall returns. Additionally, the plan may not be suitable for those with a shorter investment horizon, as it typically requires a longer-term commitment.

The plan also limits your flexibility to make changes to your investment strategy, as you are locked into the plan during both market upswings and downswings. Another thing to consider is the fact that in a down market, the gains are locked in, which means that you may miss out on potential recovery.

Can you walk me through your investment strategy? What key features are important to you when investing?

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