Comfort Life Deferred Annuity Plan
Comfort Life Deferred Annuity Plan (“Comfort Life” or the “Plan”) is a qualifying deferred annuity policy (QDAP) certified by the Insurance Authority, building retirement reserves. The Plan integrates savings and life insurance functions, securing a 10-year of monthly annuity income1 with just 5 or 10 years of premium payment. Additionally, the premiums are tax deductible2 (if eligible).
Comfort Life also features flexible financial arrangements to cater financial needs, achieving a comfortable and abundant retirement lifestyle.
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10 years of monthly annuity income
You can choose to pay premiums over a period of 5 or 10 years to build retirement reserves. The Plan will provide monthly annuity income1 starting from the annuity income start date3 on a monthly basis, after the 20 years accumulation period, for a total of 10 years, allowing the insured to enjoy a stable stream of annuity income every month during retirement.
Reference Table:
| Premium payment term | Issue age of the insured | Accumulation period | Monthly annuity income start age of the insured3 | Annuity income period |
|---|---|---|---|---|
| 5 years/ 10 years | age 30 | 20 years | age 50 | 10 years |
| age 40 | age 60 | |||
| age 50 | age 70 |
The monthly annuity income1 consists of 2 components:
Guaranteed monthly annuity income1– the amount is fixed during the annuity income period, giving stable returns for better retirement planning.
Non-guaranteed monthly annuity income1,4– the amount is non-guaranteed which provides the insured with potential return to boost up retirement reserve.
Self-selected annuity payout options
The insured can opt to withdraw monthly annuity income1 (including the guaranteed monthly annuity income and non-guaranteed monthly annuity income) as cash payment (default option) to pay daily expenses. Alternatively, the insured can accumulate that in the policy to earn interest4, and cash out any accumulated monthly annuity incomes and interest4 at anytime without additional charges to suits his/her needs.
If the insured would like to change the payout option5 of monthly annuity income1, he/she can simply complete a designated form and no fee will be applied.
Maturity benefit to support retirement needs
Upon policy maturity3, the Plan will provide a maturity benefit, which is equivalent to guaranteed cash value, any accumulated guaranteed and non-guaranteed monthly annuity incomes and interest1,4 (if applicable) and non-guaranteed terminal dividend6, less any indebtedness. The policy will be terminated after the maturity benefit is paid.
Internal rate of return upon policy maturity
The following table shows the internal rate of return (“IRR”) upon policy maturity. The IRR of the Plan is subject to different factors, including but not limited to policy currency, premium payment term and premium payment mode. The IRR table assumes the insured is a 45-year-old non-smoking male, which also applies to all eligible issue age of the insured, and the range of IRR of the following table is subject to premium payment mode.
| Premium payment term | Premium payment mode | Annuity income period | Policy currency | |||
|---|---|---|---|---|---|---|
| HKD | USD | |||||
| Guaranteed IRR | Total IRR (including non-guaranteed4, 6) | Guaranteed IRR | Total IRR (including non-guaranteed4, 6) | |||
| 5 years | Annual, semi-annual, quarterly, monthly | 10 years | 1.10%-1.27% | 3.37%-3.50% | 1.19%-1.35% | 3.47%-3.60% |
| 10 years | 0.88%-1.08% | 3.41%-3.55% | 0.99%-1.17% | 3.54%-3.68% | ||
The calculation of guaranteed IRR includes guaranteed cash value and guaranteed monthly annuity income1, while the calculation of total IRR includes guaranteed cash value, guaranteed monthly annuity income1, non-guaranteed monthly annuity income1,4 and non-guaranteed terminal dividend6.
The figures of above IRR are adjusted to 2 decimal places and are for reference purposes only, and it is assumed that:
(1) there is no partial surrender, no premium holiday applied or any indebtedness throughout the benefit term;
(2) all premiums are paid in full when due;
(3) the insured chooses to receive all monthly annuity income1 paid as cash payment immediately; and
(4) premium levy is not included.
Tax benefits on premium (if eligible)
The Plan is certified by the Insurance Authority as a qualifying deferred annuity policy (QDAP). You can enjoy a tax deduction2(if eligible) on your qualifying premiums of up to HKD60,000 per taxpayer each year, or HKD120,000 for a married couple provided that the husband and the wife are both taxpayers, and the deductions claimed by each taxpayer does not exceed the individual limit.
For details of tax deduction, please refer to clause 8 – “tax deduction” under “important information”.
Life protection for the loved ones
Death benefit
In the unfortunate event that the insured passes away while the policy is in force, the beneficiary will receive a death benefit which is equivalent to:
1) The higher of:
● 108% of the accumulated premium due and paid after deducting any total amount of guaranteed monthly annuity income1 paid at the date of death of the insured ; or
● the guaranteed cash value at the date of death of the insured；
2) plus any accumulated guaranteed and non-guaranteed monthly annuity income and interest1,4(if applicable)；
3) plus non-guaranteed terminal dividend6；and
4) less any indebtedness.
Flexible death benefit settlement options
The Plan offers flexible death benefit settlement options to help you safeguard your family’s financial future. While the insured is alive, you can choose to pay the death benefit to the beneficiary according to any one of the following options.
| Option 1: |
| Lump sum payment. |
| Option 27: |
| Death benefit will be paid at annual or monthly intervals over your selected payment term of 10, 20, 30, 40 or 50 years by instalment. |
| Option 3 7: |
| A designated percentage of death benefit (which must be 5% or above) will be paid in a lump sum as the first instalment.After paying the first instalment, the remaining balance will be paid at annual or monthly intervals over your selected payment term of 10, 20, 30, 40 or 50 years by instalment. |
| Option 4 7: |
| Death benefit will be paid at annual or monthly intervals over your selected payment term of 10, 20, 30, 40 or 50 years by instalment. After paying the instalments, a designated percentage of death benefit (which must be 5% or above) will be paid in a lump sum as the last instalment of death benefit. |
| Option 5 7: |
| Death benefit will be paid at annual or monthly intervals over your selected payment term of 10, 20, 30, 40 or 50 years by instalment. The instalment amount will increase 5% annually until the total amount of death benefit have been paid. |
Premium holiday offers extra flexibility
In case of unexpected incident or immediate financial need, you can exercise a premium holiday8 of up to 2 years starting from the 2nd policy anniversary to suspend premium payment while the policy will remain in force, the exercise of premium holiday8 is subject to the applicable terms and conditions determined by us from time to time.
Simplified underwriting procedure
The Plan offers simplified underwriting with no medical examination required which makes application easier and more convenient.
Comfort Life Deferred Annuity Plan
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Issue age of the insured |
Age 30 to 60 |
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Premium payment term |
5 years/ 10 years |
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Benefit term3 |
30 years |
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Accumulation period |
20 years (i.e. premium payment term plus deferral period before the annuity income period) |
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Annuity income period |
10 years, providing monthly annuity income1 starting from the annuity income start date3 on a monthly basis after the 20 years accumulation period | ||||||||||||||||||||||||||||
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Premium structure |
Fixed and guaranteed |
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Premium payment mode9 |
Annual, semi-annual, quarterly, monthly |
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Policy currency and minimum premium |
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Monthly annuity income1 |
Guaranteed monthly annuity income1: Steady and fixed monthly income during annuity income period Non-guaranteed monthly annuity income1,4: Potential monthly income during annuity income period and it’s non-guaranteed |
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Monthly annuity income payout option5 |
● Cash withdrawal (default option); or ● Accumulate in the policy to earn interest 4 If no payout option is selected, we will pay in cash |
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Guaranteed cash value |
Payable upon policy surrender and policy maturity3 |
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Non-guaranteed terminal dividend 6 |
One-time and non-guaranteed. Provided that no premium holiday8 has been applied, starting from the 6th policy anniversary (start date of terminal dividend3), the non-guaranteed terminal dividend will be payable at the earliest of below: ● when the Company pays the death benefit; ● when the policy is surrendered by the policyholder; or ● when the policy reaches the policy maturity date3 |
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Surrender value |
Guaranteed cash value + any accumulated guaranteed and non-guaranteed monthly annuity income and interest1,4 (if applicable) + non-guaranteed terminal dividend6 - any indebtedness |
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Total surrender value at the end of the first policy year (including the guaranteed and non-guaranteed amounts) |
Depends on the policy currency and premium payment term, the range of total surrender value at the end of the first policy year are as below:
The above table calculation is based on annual premium. |
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Maturity benefit |
Guaranteed cash value + any accumulated guaranteed and non-guaranteed monthly annuity income and interest1,4 (if applicable) + non-guaranteed terminal dividend6 - any indebtedness |
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Death benefit |
The higher of: ● 108% of the accumulated premium due and paid after deducting any total amount of guaranteed monthly annuity income paid1 at the date of death of the insured; or ● the guaranteed cash value at the date of death of the insured； + any accumulated guaranteed and non-guaranteed monthly annuity income and interest1,4 (if applicable) + non-guaranteed terminal dividend6 - any indebtedness |
Notes:
- While this policy is in force, provided that: (i) all due premiums have been fully paid; (ii) no premium holiday has been applied; and (iii) the insured still survives, the Company will pay to the insured the guaranteed and non-guaranteed monthly annuity income starting from the annuity income start date (or the succeeding business day if such day is not a business day) on a monthly basis until the earlier of either the policy maturity date or the date of death of the insured.
- HKD60,000 is the maximum tax deduction limit per taxpayer per year of assessment for “qualifying deferred annuity premiums” and “Mandatory Provident Fund tax deductible voluntary contributions”. HKD120,000 is the maximum tax deduction limit per a taxpaying and married couple per year of assessment for “qualifying deferred annuity premiums” and “Mandatory Provident Fund tax deductible voluntary contributions”, as long as the deductions claimed by each taxpayer do not exceed the individual limit, the actual deductible tax amount will depend on your tax rates. For details on tax deductions, please refer to clause 8 – “tax deduction” under “important information” and visit Inland Revenue Department (IRD) of HKSAR website and consult your tax and accounting advisors for tax advice.
- If premium holiday has been exercised under the policy, the Company will defer the premium due date, premium expiry date, policy maturity date, coverage cessation date, start date of terminal dividend and annuity income start date according to the premium holiday period as designated by the policyholder.
- The non-guaranteed monthly annuity income is non-guaranteed dividend, more information is available at clause 5 and clause 6 under “important information”.The non-guaranteed monthly annuity income and interest are not guaranteed and may become zero in some circumstances. The actual benefits and/or returns may be lower or higher than estimates and China Life (Overseas) reserves the right to revise the non-guaranteed monthly annuity income and/or interest from time to time. For more information, please refer to “non-guaranteed benefit” risk.
- If no payment option has been chosen by the annuitant (as the insured), China Life (Overseas) will assume that the annuitant chooses to receive monthly annuity incomes as cash payments.
- Terminal dividend is a non-guaranteed one-time dividend. Terminal dividend may become zero in some circumstances. For more information, please refer to clause 5 and clause 6 under “important information” and “non-guaranteed benefit” risk.
Provided that no premium holiday has been applied, starting from the 6th policy anniversary (start date of terminal dividend), the terminal dividend shall be paid upon the occurrence of the earliest of the following conditions:
a. when the death benefit is paid;
b. when the policy is surrendered by the policyholder; or
c. when the policy reaches the policy maturity date.
The amount of terminal dividend may be increased or decreased at the Company’s sole discretion when it is declared. If the policyholder has applied for premium holiday before the start date of terminal dividend, the Company will defer the start date of terminal dividend according to the premium holiday period as designated by the policyholder. - For the instalment option (i.e. option 2 to 5), starting from the payment date of the first instalment until the total amount of death benefit have been paid, any interest will be accrued monthly on the remaining balance of death benefit at a rate to be determined by the Company at its sole discretion from time to time. Any accumulated interest will be paid together with the last instalment of death benefit. If the beneficiary(ies) dies at any time before the Company has fully paid the death benefit, the Company shall pay the remaining balance of the death benefit with any accumulated interest in a lump sum payment to the respective personal representative for the estate of the deceased beneficiary(ies) (in accordance with their entitlement, where applicable). The policy shall terminate when the death benefit is paid in full.
Applicable to options 2 to 5 : (i) If the total amount of death benefit at the date of death of the insured is less than HKD400,000/USD50,000; or (ii) the annualized amount of instalment(s) of death benefit is less than HKD20,000/USD2,500; or (iii) the policyholder does not specify any settlement option; or (iv) any of the beneficiary(ies) of the policy is not a natural person, we will pay out the benefit amount to the beneficiary in a lump sum. - Between 60 days and 90 days (both days inclusive) before the 2ndpolicy anniversary and before every policy anniversary thereafter, the policyholder can apply premium holiday by suspending paying premiums for a specified period from the next policy anniversary. Such application must be approved by the Company within the aforesaid period. The application is subject to certain terms and conditions.
While premium holiday is in effect, the Company will defer the premium due date, premium expiry date, policy maturity date, coverage cessation date of the Plan and start date of terminal dividend and annuity income start date according to the premium holiday period as designated by the policyholder.
After the premium holiday, you should pay the required renewal premium within the grace period so that the policy shall continue to be in force. For more information, please refer to clause 4 under “Important Information”. - If the required renewal premium is paid by you within the grace period, the policy shall continue to be in force. For details, please refer to the policy provisions issued by China Life (Overseas). If the policy is lapsed or surrendered early, the policy cash value received by you may be considerably less than the total amount of the premium paid.
- The annuitant and the insured of the Plan must be the same person, but he/she can be different from the policyholder
Important Information
Important Information:
This product brochure is for reference only. Please refer to the policy documents for the complete definitions of the terms, as well as all the terms and conditions of this product. You are reminded to review all of the relevant product materials provided to you and to seek independent professional advice if necessary.
| What are the key product risks? | |
|---|---|
| Credit risk: | This product is a life insurance Policy issued by China Life (Overseas). Any Premium paid will become part of our assets and our financial strength will affect our ability to meet our contractual obligations to you under the Policy. Therefore this product is subject to our credit risk. |
| Early surrender risk: | The savings component of the Plan is subject to risks and possible losses. Should you surrender the Policy early, you may receive an amount considerably less than the total amount of Premiums paid. |
| Exchange rate and Currency risks: | Any Policy with foreign currencies involves risks, such as potential changes in political or economic conditions that may substantially affect the price or liquidity of a currency. The fluctuations in exchange rates may also cause financial losses to you during currency conversions. You should consider the potential currency and exchange rate risks. |
| Inflation risk: | The cost of living in the future may be higher than expected due to the effects of inflation. Therefore, your current planned benefits and/or returns may be insufficient to meet your future needs even if we fulfill all of our contractual terms and obligations. |
| Liquidity and Withdrawal risk: | You are obliged to hold the Policy and pay the Premium for the designated period of time. If you terminate the Policy prior to the Policy Maturity Date, you will suffer a financial loss. In case you make partial withdrawals from the Policy, your account value, death benefit and other Policy values will be reduced, and you may need to pay the relevant handling fee or charges (if any). |
| Non-guaranteed Benefit: | This Plan consists of non-guaranteed benefits and/or returns. The actual amounts of benefits and/or returns in the future may be different from the benefits and/or returns which project on the product materials. The product materials are for illustrative purposes only. |
| Policy Termination: | The Policy will be terminated if (a) the Policy has lapsed or is surrendered; (b) the Policy maturity benefit is paid; (c) the death benefit is fully paid, (d) the Terminal Illness Benefit is paid; (e) the due Premium has not been paid within 31 days after the Premium Due Date and the Policy has no remaining guaranteed Cash Value; or (f) the Indebtedness of this Policy is equal to or exceeds the guaranteed Cash Value of this Policy. |
Disclaimer:
The information and descriptions contained herein are not intended to be complete descriptions of all terms, exclusions and conditions applicable to the products and services, but are provided solely for general informational purposes. For complete details please refer to the actual policy or the relevant product or services agreement.
- The Policy is underwritten by China Life Insurance (Overseas) Company Limited (“China Life (Overseas)” or "us/we/our"). China Life (Overseas) is responsible for the features, underwriting and benefit payments under the Policy. You should fully understand all of the risks involved in this product and consider whether this product is affordable and suitable to you before making your application.
- China Life (Overseas) shall make the final decisions on the underwriting and claims. We shall rely on your submitted information to assess whether to accept or decline your application, and shall refund any premiums and levy (if any) paid without interest for declined cases.
- Exclusions and Limitations - Applicable to terminal illness benefit - the policy shall not cover any claims if the insured is involved in any of the following activities or the consequences directly or indirectly caused by any of the following events occur in respect of the Insured: (1) if the symptoms or conditions of or the diagnosis of any non-terminal illness or terminal illness first appeared or occurred within the first 90 days from the issue date of this policy or the last date of reinstatement of this policy, whichever is later; (2) any congenital or pre-existing conditions before the issue date of this policy or the last date of reinstatement of this policy, whichever is later; (3) where the diagnosis of the terminal illness of the insured was directly or indirectly due to acquired immune deficiency syndrome (AIDS) or infection by human immunodeficiency virus (HIV). Infection shall be deemed to have occurred where blood or other relevant tests indicate either presence of HIV or antibodies to HIV. Under this policy, the definition of AIDS shall be that used by the World Health Organization in 1987, as may be revised by the World Health Organization from time to time; (4) suicide or any deliberate self-induced behavior, whether sane or not and whether intoxicated or not; (5) congenital deformities or anomalies; or (6) taking of drugs without the direction of a registered medical practitioner, abuse of alcohol or taking of poison.
In addition, the information stated in this product brochure is for reference only. Please refer to the policy document for the exact terms and conditions and limitations such as incontestability, suicide and fraud etc. for all exclusions.
- Non-payment of premium / automatic premium loan - You should pay premium(s) on time according to the selected premium payment schedule. If the due premium remains unpaid upon the expiry of the grace period, an automatic premium loan will be taken out against the policy to settle the unpaid premium automatically. All policy loans are interest-bearing and calculated at a rate (as stated on our corporate website www.chinalife.com.hk) to be declared by us from time to time. Interest accrued shall become a part of the indebtedness. When the loan balance is equal to or exceeds the guaranteed cash value of the basic plan of the policy, the policy will be lapsed and you will lose the related insurance coverage and suffer a financial loss. Under these circumstances, the surrender value of the policy will be deducted to repay the outstanding loan balance (including interest), and the remaining value will be refunded to you.
- Dividend and/or crediting interest philosophy - This is a participating and/or providing interest on accumulation insurance plan. Premiums received from the policies will be invested to a variety of assets according to China Life (Overseas)’s investment strategy. The surplus from the invested assets will be shared with policyholder through declared dividends and/or interest rate on accumulation in accordance with the relevant clause in the benefit provision. China Life (Overseas) will ensure a fair sharing of profits among different groups of policyholders and also between policyholders and China Life (Overseas). China Life (Overseas) will review and determine the dividend and/or interest rate on accumulation at least once a year, the current projection on dividend and/or interest rate on accumulation are not guaranteed and subject to change with the entirfe performance of the relevant policies and the factor including but not limited to the investment returns, operating expense, claims experience, commission, persistency, past experience and future prospect. In addition, China Life (Overseas) will consider both past and future outlooks of all factors including but not limited to:
Claims – including the costs of providing death benefit as well as other benefits under the product(s).
Investment return – including the interest income, dividend income, outlook of interest rates and any changes in the market value of the product’s backing asset.
Expenses – including both direct expenses (e.g. commissions, underwriting, issue and premium collection expenses) and indirect expenses (e.g. general overhead expenses) related to the product.
Persistency – including policy lapse and partial surrender experience.
Note: The dividend or interest rate history is not an indicator of the future performance of this product.
- Investment Philosophy, Policy and Strategy - China Life (Overseas) aims to strive for minimizing volatility of the investment return and provides stable return as our investment philosophy. Assets are mainly invested in bonds and other fixed income instruments, such as government and corporate bonds and other fixed income instruments to support the guaranteed financial obligation. To enhance the performance of the investment portfolio, China Life (Overseas) invests in equity-type investments and other investment instruments such as mutual funds and direct / indirect investment in properties or commercial institutions.
The investment portfolio will be diversified across different geographic regions and /or industries. Investment strategy will be subject to change depending on the market conditions and the economic outlook. China Life (Overseas) will inform Policyholder the relevant changes in dividend and/or interest rate on accumulation and the impact to the policies when there is change in the investment strategy.
China Life (Overseas)’s current investment strategy on participating and/or providing interest on accumulation plans are as follow:
Please refer to China Life (Overseas) Company’s website www.chinalife.com.hk/products/dividendandinvestment for dividend history, Dividend and/or Crediting Interest Philosophy, Investment Philosophy, Policy and Strategy, as well as the fulfillment ratio of China Life (Overseas).Asset type Target Asset Mix (%) Bonds and other fixed income instruments 50% to 90% Equity-type investment and other investments 10% to 50%
- Cooling-off right - You have the right to cancel the policy within the cooling-off period and obtain a refund of any premiums and levy (if any) paid by giving written notice to us provided that you have not made any claims under the policy. Such notice must be signed by you and submitted to China Life (Overseas) at 22/F, CLI Building, 313 Hennessy Road, Wan Chai, Hong Kong within 21 days after the delivery of the policy or issue of a notice to you or your representative informing you that the policy is available, whichever is earlier.
- 24-hour Worldwide Emergency Assistance Service is provided by Inter Partner Assistance Hong Kong Limited. The provision of services is subject to the terms and conditions of the Inter Partner Assistance Hong Kong Limited. China Life (Overseas) reserves the right to amend the terms and conditions thereof from time to time without prior notice.
- Please note that the Qualifying Deferred Annuity Policy (“QDAP”) status of the Plan does not necessarily mean you are eligible for tax deduction available for QDAP premiums paid. The QDAP status of the Plan is based on the features of the Plan as well as certification by the Insurance Authority and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of HKSAR before you can claim these tax deductions. Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws and regulations or interpretations, and how they may affect you. Further information on tax concessions applicable to QDAP may be found at the website of Insurance Authoritywww.ia.org.hk.
Certification by Insurance Authority
The Insurance Authority’s certification is not a recommendation or endorsement of the policy nor does it guarantee the commercial merits of the policy or its performance. It does not mean the policy is suitable for all policyholders nor is it an endorsement of its suitability for any particular policyholder or class of policyholders. The policy has been certified by the Insurance Authority but such certification does not imply official recommendation. The Insurance Authority does not take any responsibility for the contents of the product brochure of the policy, makes no representation as to its accuracy or completeness, expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the product brochure of the policy.
This product brochure is for reference only and contains descriptions of the key features of this product. For all the terms and conditions and exclusions of this product, please refer to the policy documents of this product. In the event of any ambiguity or inconsistency between the terms of this brochure and the policy documents, the Chinese version of the policy documents shall prevail.
China Life Insurance (Overseas) Company Limited (incorporated in the People's Republic of China with limited liability)
