In a low interest rate environment, the search for attractive returns can be a challenge. Nonetheless, not all investors are comfortable in taking high risks to chase better returns. In response to this challenge, HSBC Life has launched a new euro denominated product called INCA – Income with Capital Protection.

INCA is a unit linked, single premium life assurance policy that offers both capital protection and an attractive potential income stream that rises each year. The minimum investment is e5000.

The level of income receivable depends on which of the two options is chosen with maximum levels of income rising up to 5 per cent in year five and potentially rising up to 6.25 per cent in year 10. The income in years six to 10 is dependent on the performance of a leading European stock market index. INCA has been designed with this feature to capitalise on the long-term economic prosperity of Europe by having part of the investment dependent on this index.

INCA provides capital protection when keeping the policy up to maturity, so customers can be safe in the knowledge that their capital will be returned at the end of term. INCA also includes an automatic level of life cover.