Cardif Assurance Vie, Taiwan Branch is launching a new RMB-linked product, “People 100”, today through Taishin Bank to provide investors an alternative option for asset diversification.
As the Chinese New Year is around the corner, some people have already received the year-end bonus from their employers. Financial planning is an opportunity to maximize the hard-earned bonus but it is not easy to allocate sufficient amount of money out of the bonus to investment, savings, and insurance. To efficiently allocate money to cover investment and protection at the same time, Cardif Assurance Vie, Taiwan Branch, suggests unit-linked products as a good option to combine savings and risk protection.
People could be overwhelmed by wild selection of unit-inked products, including systematic investment plan, one time investment, A share/B share, and foreign currency-denominated insurance. As RMB had a strong performance in the second half of 2014, Cardif Assurance Vie, Taiwan Branch and Taishin Bank are co-launching the new RMB-linked product, “People 100”.
With as many as 50 underlying assets of investment, including mutual fund, ETF, and monetary account, “People 100” is a unit-linked insurance product in RMB that offers diverse underlying assets. Since July 2014, the regulator has removed the limitation on RMB assets, which allows investors to invest worldwide through RMB mutual funds.
Many RMB high yield bond funds, for example, those for global or emerging markets, are included. “People 100” offers fixed monthly payback and very competitive annual payback rate. The platforms include annuity (eligible for 0 to 70 years old) and life insurance (eligible for 0 to 80 years old). The minimum premium for new policies is RMB 20,000, and the maximum accumulated premium is RMB 60,000,000. Such RMB-based product enables more diversified and completed portfolio for the policyholder.
Meanwhile, the life insurance platform is an economic offer based on the fifth mortality table, which helps to optimize the effectiveness of asset security.
Lastly, all the transactions (including premium, benefit, and policy loan, etc) are based on RMB. Currency risk should be taken into consideration for policyholders as it may be affected by factors such as inflation and interest rate.
The customised product offers a stable asset allocation tool for people who already possess RMB assets or need to use RMB in the future as well as those who plan to allocate some assets in foreign currency.
Taishin Bank will serve as the exclusive channel to promote the product.