*Age means age of the Life Insured at the last birthday

^Both the minimum requirements for Guaranteed Monthly Annuity Payment and Total Premiums Paid must be fulfilled.

How does Retire-at-Ease II Deferred Annuity Plan provide you a blissful retirement?

 

Alan realizes that Hong Kong people are having longer lifespan and the risk of longevity should not be neglected. He wants to start his retirement planning as early as possible in order to have a fruitful retirement life and avoid becoming the family burden. He then insures for Up To Age 100 Option with Accumulation Period to age 70 of the Life Insured. With regular annual premium payments at his young age, his retirement reserve is accumulated during the Accumulation Period. Upon commencement of the Annuity Period (i.e. starting from the Policy Anniversary immediately following his 70^th birthday), Monthly Annuity Payment will be distributed by the Plan. The sustainable cash flow ensures him a worry-free retirement life.

Assuming that cash withdrawal is chosen for Guaranteed Bonus and Monthly Annuity Payment Option throughout the benefit term and all annual premiums are paid in full when due:

 

 

The above example is strictly for illustration purpose and the figures may differ slightly from the actual figures in the Policy due to rounding differences. Please refer to the Insurance Proposal of the Plan for actual premium and more details.

^ Monthly Annuity Payment includes Guaranteed Monthly Annuity Payment and Non-guaranteed Monthly Annuity Payment. Non-guaranteed Monthly Annuity Payment is not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount payable may be higher or lower than the illustrated example.

 

 

Betty is very busy at work and feels that the work pressure has increased in recent years. Then she decides to retire earlier to enjoy her own life. Betty and her husband have 2 sons. She wants to have a peaceful life after her retirement but she does not want to give financial burden to her sons. She therefore insures for Fixed Term Option with Accumulation Period of 10 years. With regular annual premium payments at her career peak, her retirement reserve is accumulated during the Accumulation Period. Upon commencement of the Annuity Period (i.e. starting from the 10^th Policy Anniversary), Monthly Annuity Payment will be distributed by the Plan until Policy maturity.

Assuming that cash withdrawal is chosen for Monthly Annuity Payment Option throughout the benefit term and all annual premiums are paid in full when due:

 

 

The above example is strictly for illustration purpose and the figures may differ slightly from the actual figures in the Policy due to rounding differences. Please refer to the Insurance Proposal of the Plan for actual premium and more details.

^ Monthly Annuity Payment includes Guaranteed Monthly Annuity Payment and Non-guaranteed Monthly Annuity Payment. Non-guaranteed Monthly Annuity Payment is not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount payable may be higher or lower than the illustrated example.

1. The Policy will be terminated if the Policyowner cannot settle the premium payment before the end of the Grace Period during the Premium Payment Term, subject to the Automatic Premium Loan, Non-forfeiture Option and other relevant provisions of the Policy. For detailed terms and conditions, please refer to the policy document issued by Hong Kong Life. If the Policy is terminated before the Policy Maturity, the Total Surrender Value (if applicable) received by the Policyowner may be less than the Total Premiums Paid.
2. Monthly Annuity Payment includes Guaranteed Monthly Annuity Payment and Non-guaranteed Monthly Annuity Payment.
3. Non-guaranteed Monthly Annuity Payment is not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount payable may be higher or lower than those illustrated in the Insurance Proposal.
4. The annual interest accumulation rate is not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount payable may be higher or lower than those illustrated in the Insurance Proposal.
5. The Guaranteed Bonus (only applicable to Up To Age 100 Option), Guaranteed Monthly Annuity Payment and Non-guaranteed Monthly Annuity Payment and Interest withdrawn will no longer be accumulated as part of the Total Surrender Value and the Total Death Benefit of the Policy. The Total Surrender Value and the Total Death Benefit of the Policy will be reduced accordingly.
6. Terminal Dividend is not guaranteed and may be changed from time to time. Past performance is not indicative of future performance. The actual amount payable may be higher or lower than those illustrated in the Insurance Proposal.
7. Accumulated Non-guaranteed Monthly Annuity Payment and Interest means the aggregate of (1) the total amount of distributed Non-guaranteed Monthly Annuity Payment left with Hong Kong Life (if any); and (2) the total amount of interest accumulated on any distributed Guaranteed Bonus (only applicable to Up To Age 100 Option), Guaranteed Monthly Annuity Payment and Non-guaranteed Monthly Annuity Payment left with Hong Kong Life.
8. Only applicable in the event of the death of the Life Insured after the Premium Payment Term and all premiums due have been paid, and subject to the terms and conditions, and the then administrative rules as determined by Hong Kong Life from time to time. For detailed terms and conditions, please refer to the policy document issued by Hong Kong Life.
9. The Accidental Death Benefit is only applicable to Life Insured who is Hong Kong resident of age 65 or below at the time of Policy application.
10. Please refer to the website of the Inland Revenue Department ("IRD") or contact the IRD directly for any tax related enquiries. You may also seek independent and professional advice from your tax and accounting advisors.
11. The Annuitant means an individual being entitled to receive the Monthly Annuity Payment and Guaranteed Bonus (only applicable to Up To Age 100 Option) payable under the Plan. The Annuitant, Policyowner and the Life Insured of the Plan must be the same individual.

The Accidental Death Benefit shall not cover any claims caused directly or indirectly, wholly or partly, by any one of the following occurrences:

1. suicide or self-inflicted injuries while sane or insane;
2. war whether declared or undeclared or any act thereof, invasion, civil commotion, riots or any warlike operations;
3. service in the armed forces in time of declared or undeclared war or while under orders for warlike operations or restoration of public order;
4. violation or attempted violation of the law or resisting arrest or participation in any brawl or affray;
5. engaging in or taking part in (a) driving or riding in any kind of race; (b) professional sports; (c) underwater activities involving the use of breathing apparatus; (d) flying or other aerial activity except as a fare-paying passenger in a commercial aircraft;
6. accident occurring while or because the Life Insured is affected by alcohol or any drug;
7. poison, gas or fumes whether voluntarily or involuntarily taken;
8. disease or infection (except infection which occurs through an accidental cut or wound), including infection with any Human Immunodeficiency Virus (HIV) and/or any HIV-related illness including Acquired Immunodeficiency Syndrome (AIDS) and/or any mutations, derivations or variations thereof;
9. childbirth, pregnancy, miscarriage or abortion.

• Basic Plan

Tax Implication on QDAP

Please note that the QDAP status of this product does not necessarily mean you are eligible for the tax deduction available for QDAP premiums paid. This product's QDAP status is based on the features of the product 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. In particular, there may not be tax deduction benefits for retired Policyowners who are not subject to salaries tax or tax under personal assessment.

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 tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. Hong Kong Life does 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 in Insurance Authority's website at www.ia.org.hk.

Certification of QDAP by Insurance Authority

The Insurance Authority 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 Policyowners nor is it an endorsement of its suitability for any particular Policyowner or class of Policyowners. 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 leaflet 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.

Cooling-off Period

If you are not satisfied with your Policy, you have a right to cancel it within the cooling-off period and obtain a refund of any premium(s) and levy(ies) paid (in the original payment currency) to Hong Kong Life without any interest. A written notice signed by you should be received directly by Hong Kong Life Insurance Limited at 15/F Cosco Tower, 183 Queen's Road Central, Hong Kong within the cooling-off period (that is, the period of 21 calendar days immediately following either the day of delivery of the Policy or the Cooling-off Notice to you or your nominated representative (whichever is the earlier)). After the expiration of the cooling-off period, if you cancel the Policy before the end of the term, the projected Total Surrender Value (if applicable) may be less than the Total Premiums Paid.

Risk

Exchange Rate Risk

You are subject to exchange rate risks for the Policy denominated in currencies other than the local currency. Exchange rates fluctuate from time to time. You may suffer a loss of your benefit values and the subsequent premium payments (if any) may be higher than your initial premium payment as a result of exchange rate fluctuations.

Liquidity Risk / Long Term Commitment

The Plan is designed to be held until the Maturity / Expiry Date. If you partially surrender (only applicable to Fixed Term Option) or terminate the Policy prior to the Maturity / Expiry Date, a loss of the premium paid may be resulted.

The premium of the Plan should be paid in full for the whole payment term. If you discontinue the payment, the Policy may lapse and a loss of the premium paid may be resulted.

Credit Risk of Issuer

The life insurance product is issued and underwritten by Hong Kong Life. The premium to be paid by you would become part of assets of Hong Kong Life and that you and your Policy are subject to the credit risk of Hong Kong Life. In the worst case, you may lose all the premium paid and benefit amount.

Market Risk

The amount of Non-guaranteed Monthly Annuity Payment and Terminal Dividend (if any) of the Plan depends principally on the factors including investment returns, claim payments, policy persistency rates, operation expenses and tax; while the annual interest accumulation rate principally depends on the factors including investment performance and market conditions. Hence the amount of Non-guaranteed Monthly Annuity Payment and Terminal Dividend (if any) and annual interest accumulation rate are not guaranteed and may be changed over time. The actual Non-guaranteed Monthly Annuity Payment and Terminal Dividend payable and annual interest accumulation rate may be higher or lower than the expected amount and value at the time when the Policy was issued.

Inflation Risk

When reviewing the values shown in the Insurance Proposal, please note that the cost of living in the future is likely to be higher than it is today due to inflation.

Important Policy Provisions

Suicide

If the Life Insured commits suicide, while sane or insane, within one (1) year from the Issue Date or date of any reinstatement, whichever is later, the liability of Hong Kong Life shall be limited to a refund of paid premiums to the Beneficiary without interest less any existing Indebtedness. In the case of reinstatement, such refund of premium shall be calculated from the date of reinstatement.

Incontestability

The validity of the Policy shall not be contestable except for (i) the non-payment of premiums, (ii) fraud or (iii) misstatement of age and/or sex as specified in the Misstatement of Age and/or Sex provisions, after it has been in force during the lifetime of the Life Insured for two (2) years from the Issue Date or date of any reinstatement, whichever is later. Premiums paid will not be refunded should the Policy be voided by Hong Kong Life.

Automatic Termination

The Plan shall terminate automatically:

1. upon the death of the Life Insured; or
2. if and when the Plan matures or is fully surrendered; or
3. if and when a premium remains unpaid at the end of the Grace Period as specified in the General Provisions unless Automatic Premium Loan applies; or
4. if and when the Indebtedness of the Policy equals to or exceeds the Guaranteed Cash Value; or
5. if and when the Guaranteed Cash Value less Indebtedness (if any) is less than the premium required to maintain the Policy up to the next premium due date as specified in the Automatic Premium Loan provisions.

Others

Insurance Costs

The Plan is an insurance plan with a savings element. Part of the premium pays for the insurance and related costs (if any).

Non-guaranteed Monthly Annuity Payment and Terminal Dividend

Hong Kong Life determines the amount of divisible surplus that will be distributed in the form of Non-guaranteed Monthly Annuity Payment and Terminal Dividend. Non-guaranteed Monthly Annuity Payment and Terminal Dividend will be determined and distributed according to the Policy's terms and conditions and in compliance with the relevant legislative and regulatory requirements as well as relevant actuarial standards, whereas Terminal Dividend is available for certain types of policies and payable at the termination of the policies.

The amount of divisible surplus depends principally on the factors including investment returns, claim payments, policy persistency rates, operation expenses and tax. Hence the amount of Non-guaranteed Monthly Annuity Payment and Terminal Dividend is not guaranteed and may be changed over time. The actual Non-guaranteed Monthly Annuity Payment and Terminal Dividend payable may be higher or lower than the expected amount at the time when the policies were issued.

Withdrawal of Cash Payments

The withdrawal of cash payments (including but not limited to guaranteed bonus (if any) (only applicable to Up To Age 100 Option) and monthly annuity payments (if any) etc.) will decrease the Total Surrender Value and Total Death Benefit of the Policy.

Partial Surrender (only applicable to Fixed Term Option)

In case of Partial Surrender, the Guaranteed Cash Value and Terminal Dividend of the Policy will be decreased accordingly. This will also decrease the Monthly Annuity Payment, Total Surrender Value and Total Death Benefit of the Policy.

Policy Loan

After the Plan has acquired a Guaranteed Cash Value and while the Policy is in force, the Policyowner may, upon the sole security and satisfactory assignment of the Policy to Hong Kong Life, apply for a Policy Loan from the Plan. Any loan on the Policy shall bear interest at a rate declared by Hong Kong Life from time to time. Interest on the loan shall accrue and compound daily from the date of loan. The Policy Loan Interest Rate is not guaranteed and will be changed from time to time. The loan and the interest accrued thereon shall constitute Indebtedness against the Policy. Interest shall be due on each Policy Anniversary subsequent to the date of loan. In the event that the Indebtedness of the Policy equals to or exceeds the Guaranteed Cash Value, the Policy will terminate. Any Policy Loan and accrued loan interest may reduce the Total Surrender Value and Total Death Benefit of the Policy.

Any application for Policy Loan is not allowed on or after the date of commencement of the Annuity Period.

Non-Protected Deposit

The Plan is not equivalent to, nor should it be treated as a substitute for, time deposit. The Plan is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.

Dispute on Selling Process and Product

Chong Hing Bank Limited, CMB Wing Lung Bank Limited, OCBC Bank (Hong Kong) Limited and Shanghai Commercial Bank Limited (collectively "Appointed Licensed Insurance Agencies" and each individually "Appointed Licensed Insurance Agency") are the Appointed Licensed Insurance Agencies of Hong Kong Life, and the life insurance product is a product of Hong Kong Life but not the Appointed Licensed Insurance Agencies. In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between the Appointed Licensed Insurance Agency and the customer out of the selling process or processing of the related transaction, Appointed Licensed Insurance Agency is required to enter into a Financial Dispute Resolution Scheme process with the customer; however any dispute over the contractual terms of the life insurance product should be resolved between Hong Kong Life and the customer directly.

• Supplementary Benefits

Accidental Death Benefit

Tax Implication on QDAP, Certification of QDAP by Insurance Authority, Cooling-off Period, Exchange Rate Risk, Credit Risk of Issuer, Inflation Risk and Dispute on Selling Process and Product in the above Basic Plan section and the below point(s) is/are applicable to the Accidental Death Benefit:

Important Policy Provisions

Automatic Termination

The Accidental Death Benefit shall terminate automatically:

1. if and when the Accidental Death Benefit expires; or
2. if and when the Basic Plan terminates.