The result is a product that compares favourably with the other offerings in the market regardless of premium size, as can be seen from the graph below.
Source: www.lifebase.co.uk
In our chosen comparison, the Wealth Management Plan ranks second, with all projected figures coming in at similar levels. This is a common theme when making most comparisons of the different types of products available in specific regions. With regards to the projected figures, there are only certain occasions when there is a product head and shoulders above the rest, or way off the pace of their competitors. Other finer details need to be taken into consideration before a decision is made by a prospective client.
A component of the WMP that may appeal to clients is the fact that it is has the flexibility to accept a regular premium after the initial set up of the policy. This is at a relatively low level of $750 per month and could be attractive to potential clients as it gives them a regular savings option without the requirement to buy another type of contract, which other investment bonds of this type do not offer.
The fact that the WMP can have a surrender penalty period of only one year could also be the deciding factor for a client when making their final choice. These types of product are designed for long term investment and most have a surrender penalty period of five years, but having that extra adaptability in the event that life does throw something unexpected your way could be seen as beneficial.
Overall the WMP is keenly priced for the market it is operating in. The availability of online functionality coupled with some of the other product features outlined here have made it a popular choice in the Hong Kong market. Along with the fact that Old Mutual International have a local presence and that they are well established having operated there for 25 years, the Wealth Management Plan should continue its impressive sales figures in Hong Kong.
Boal & Co launched the product comparison software LifeBase in 1997. It provides analysis of offshore life products and has been used extensively by life companies.
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