Joyous Life Deferred Annuity Plan
Enjoy a joyous retirement with guaranteed monthly annuity income
Will a stable income stream alone be enough for a joyous retirement? We understand you would also want to enjoy tax benefits1, extra protection and even plan ahead for your family. Therefore, we have prepared “Joyous Life Deferred Annuity Plan” (the “Plan”), which provides you with a comprehensive solution for a true worry-free retirement!
Enjoy 10-year guaranteed monthly annuity income with 5-year premium2
By paying just 5 years of premiums, we will provide the annuitant (as the insured) with a guaranteed monthly annuity income2 at each policy monthiversary starting from the 8th policy anniversary (as the “annuity income start date”) for up to 10 years while the policy is in force. The amount of the guaranteed monthly annuity income2 is fixed during the annuity income period, giving stable returns for better retirement planning.
Flexible monthly annuity income payout options
The annuitant can enjoy their retirement with flexibility. He/she can cash out the guaranteed monthly annuity income2 from the annuity income start date for settling the daily expenses, or choose to accumulate that in the policy for earning non-guaranteed interest4.
Tax benefits1 on premium
The Plan is certified by the Insurance Authority as a qualifying deferred annuity policy. The maximum premium that can apply for tax deduction is up to HKD60,000 for an individual 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.
Life protection for your loved ones
In the unfortunate event that the insured passes away while the policy is in force, the beneficiary will receive a death benefit whereby the amount will be calculated according to the table below:
|Death benefit amount|
|If the insured passes away before the annuity start date||
|If the insured passes away on or after the annuity start date||
While the insured is alive, you can choose how the death benefit is to be paid to safeguard your family’s financial future. You can opt for settling the benefits in a lump sum or by annual instalments with a fixed amount over a fixed payment term of 10 or 20 years. For the instalment option, the remaining balance of death benefit will be deposited in the policy to accumulate interest4 until the end of the payment term. The interest will be calculated on an annual basis and it is non-guaranteed which will be determined by us from time to time. The accumulated interest will be paid together with the last instalment of death benefit. If the beneficiary dies during the settlement period of the death benefit, we will pay the remaining balance of the death benefit with interest (if any) in a lump sum payment to the estate of the deceased beneficiary.
If the death benefit amount on the date of death of the insured is less than USD50,000, or the policyholder has not indicated any settlement option, we will pay out the benefit amount to the beneficiary in a lump sum.
Terminal illness benefit
In case the insured is diagnosed as suffering from a terminal illness by a specialist and it is confirmed by a registered medical practitioner designated by us that the insured is expected to pass away within 12 months, we will pay the death benefit in advance as terminal illness benefit to release your financial burden, and the policy will be terminated thereafter.
Worldwide emergency assistance service3
If the insured is diagnosed with an illness or is injured in an accident outside Hong Kong, he/she will access comprehensive coverage under the free 24-hour worldwide emergency assistance service3.
Simplified underwriting procedure
The Plan offers you simplified underwriting with no medical examination is required which makes application easier and more convenient.
Joyous Life Deferred Annuity Plan
|Issue age||Age 42 to 75|
|Premium payment term||5 years|
|Annuity income start date||Starting from the 8th policy anniversary|
|Annuity income period||10 years|
|Benefit term||18 years|
|Premium payment mode||1) Annual; or
|Minimum premium (USD)||
|Surrender value of the policy at the end of the first policy year (USD)||
Depends on premium payment mode, the range of the surrender value of the policy at the end of the first policy year are as below:
|Internal rate of return (“IRR”)||
Depends on premium payment mode, the range of guaranteed IRR at maturity for a policy with an age 45 male insured are as below:
The figures of above IRR are adjusted to one decimal place and are for illustrative purpose only, and it is assumed that (1) all premiums are paid in full when due with no partial surrender is made; (2) the customer withdraws all monthly annuity incomes2 immediately after they are paid; (3) premium levy is not included; and (4) there is no indebtedness throughout the benefit term.
Case: Regular withdrawal of guaranteed monthly annuity income2 during annuity income period
Vincent (non-smoker) wants to have a relaxing life after retirement. In order to secure a stable stream of income and provide financial security for his family, he enrolls in “Joyous Life Deferred Annuity Plan” at age 45, with a premium payment term of 5 years and annual premium at USD8,000. Vincent can apply for a tax reduction of HKD60,000 per year of assessment during the premium payment term. At age 53, Vincent starts to receive a guaranteed monthly annuity income of USD 455 for up to 10 years.
In the above case, the figure of IRR is adjusted to one decimal place while other figures are rounded to the nearest whole numbers, and all figures are for illustrative purpose only.
The above example is based on the following assumptions:
- the customer settles the premiums in annual mode and all premiums are paid in full when due;
- premium levy is not included; and
- there is no indebtedness throughout the benefit term.
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.
- 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 premium paid without interest for declined cases.
- The Plan is a non-participating life insurance plan and therefore dividends are not available to the Plan.
- 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) onset of symptoms or conditions of or first diagnosis of any terminal illness within the first 90 days from the issue date of this policy or the latest date of reinstatement of this policy, whichever is later; (2) any pre-existing or congenital conditions before the issue date of this policy or the latest 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 General Provisions for the exact terms and conditions and limitations such as incontestability, suicide and fraud etc. or 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.
- Investment policy and strategy and philosophy in deciding interest rate for accumulation - China Life (Overseas) aims to strive for minimizing volatility of the investment return and provides stable return as our investment philosophy. Assets are 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. 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.
The Interest Rate for Accumulation is determined based on market conditions and expected investment return of China Life (Overseas). In light of the above factors, Interest Rate for Accumulation is not guaranteed and may be higher or lower than the values illustrated in the benefit illustration provided at point of sale.
- 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 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.
- 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 Authority www.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.
|What are the key product risks?|
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 before deciding which policy currency you should take.
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).
This Plan consists of non-guaranteed accumulation interest rate. 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.
The policy will be terminated if (a) the policy is lapsed or surrendered; or (b) this policy reaches the policy maturity date; (c) the company has paid the death benefit in full; (d) the company has paid the terminal illness benefit; (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 the policy is equal to or exceeds the guaranteed cash value 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.
This product brochure is for distribution in Hong Kong only and shall not be construed as any provision of or offer to sell or solicitation to buy any insurance product outside Hong Kong. China Life Insurance (Overseas) Company Limited ("China Life (Overseas)") does not provide or offer to sell any insurance product outside Hong Kong. The above information is for reference only. The detailed terms, conditions and exclusions of the Plan are subject to the terms and conditions of the policy document of the Plan. For a copy of the terms and conditions of the policy contract, please contact China Life (Overseas) for enquiry.