With the US economy in a current tailspin and economic growth steadily being concentrated in the Greater China region, the shifts of investments from the West to the eastern markets are becoming more common. This trend is supported by JWT’s recent report in emerging market trends.

Insular Life’s I-Dollar Wealth Multiplier does just that. As the first and largest Filipino life insurance company celebrates its 100 years of business this 2010, Insular Life thanks its policyholders for their trust and confidence through this initial product offering.  I-Dollar Wealth Multiplier is a structured variable life insurance product that promises considerable returns for investors while providing enough safeguards to guarantee the client’s principal investments.
 
Insular Life’s I-Dollar Wealth Multiplier is a five-year, single premium, structured investment-linked life insurance product that combines life protection, exposure to prime market opportunities, and principal guarantee, if held to maturity.
 
According to Insular Life’s senior assistant vice president, Alijeffty C. Gonzales, Certified Investment Solicitor (CIS), Registered Financial Planner (RFP), the I-DWM is Insular Life’s response to the growing need of the market for insurance products with investment features. “Instead of just putting your dollars in a fixed-income instrument which pays very low in interest, shift it to something that will take advantage of favorable investment developments,” he said.

The I-Dollar Wealth Multiplier (I-DWM) has an asset diversification scheme that allocates investments in the Greater China market: Hang Seng Investment Index Fund Series, composed of Chinese companies doing business in China but are listed in Hong Kong, the Hong Kong Tracker Fund, and the MSCI Taiwan Index. “We’re offering a more pro-active approach in taking advantage of emerging market opportunities,” Gonzales explained.
 
Gonzales noted the inevitable effect of the weakening of the US Dollar.  “Any currency pegged on the USD will rise.  To take advantage of the situation, one should identify which of those currencies is bound to go up the most.  From current reports and data, the yuan’s value has the greatest potential to appreciate,” he said.  To support his statement, Gonzales recalled how in November of last year, the European Union and US President Barack Obama, in his state visit to China, called on the Chinese leaders “to allow the yuan to appreciate to help prevent trade imbalances that exacerbated the global crisis”. 

Added to that, is the fact that the prevailing low US Dollar interest rate environment resulting from the aftermath of the credit crisis, is favorable to businesses.  With lower operating costs, higher profit margins should be realized by corporations; thereby, translating to higher stock prices.  As low interest rates favor the stock markets, an equity position in the most dynamic market, i.e., Greater China, is the best dollar investment vehicle going forward.  Based on recent IMF forecast, China will lead the world to recovery by contributing the biggest GDP growth in the next three years.   
 
More importantly, with the I-DWM, the initial investment of investors is guaranteed. “This product provides a capital protection feature such that in a worst case scenario that Greater China will not perform, investors will get their principal back at maturity,” he said.

Moreover, I-DWM has a life insurance protection feature, with  insurance benefit equal to 125 percent of the single premium or the value of the fund, whichever is higher.  Interested investors can avail of I-DWM for a low minimum of $10,000, but if at least $100,000 is placed, bonus units will be earned.  “Unlike other financial products in the market, I-DWM doesn’t have any upfront fees; hence, yields you will earn will come from the full amount you placed in our product,” Gonzales explains. 
 
The I-Dollar Wealth Multiplier is the first retail-oriented China-centric investment fund in the market. Gonzales explained. “It is a vehicle that will allow you to capture the growth potential of China in the next five years.  Such investment opportunities do not come all the time.  We are fortunate that Insular Life came up with such an offer on its 100th year.  It’s a way of showing the company’s gratitude to the Filipinos‘100 years of trust and confidence   It’s also shows Insular Life’s commitment to continuously secure the financial future of Filipino families,” he said.
 
Insular Life is a provider of life and financial protection, savings and investment solutions backed by P60 billion in assets. In 2008, the company posted a net income of P2.1 billion.