eIncomePro Deferred Annuity Plan (100% Guaranteed)

Please note the relevant product risks. The above life insurance plan is underwritten by Hang Seng Insurance Company Limited

Plan overview

eIncomePro Deferred Annuity Plan (100% Guaranteed) (“eIncomePro” or “the Plan”) is a life insurance plan with saving elements and is not equivalent or similar to any kind of bank deposit. It is underwritten by Hang Seng Insurance Company Limited (“HSIC”). eIncomePro has been certified by the Insurance Authority (“IA”) as Qualifying Deferred Annuity Policy (“QDAP”) in Hong Kong. Taxpayers are allowed to claim a tax deduction for their qualifying deferred annuity premiums up to a maximum limit of HKD60,000 per assessment year. For more information about QDAP, please visit www.ia.org.hk/qdap. This plan is only available for online application.

Only 3 simple steps to apply online – Quote > Apply > Payment

Key features

Depending on your plan options (5/10/15 years of deferred annuity accumulation period, annual or monthly premium payment mode), the deferred annuity Internal Rate of Return ("IRR") of your Monthly Guaranteed Annuity Income could be up to 2%, safeguarding your retirement life.

Accumulation period (Year)
Payment mode IRR
5
Monthly
1.85% 
Annual 2.00%
10
Monthly
1.91% 
Annual
2.00%
15 Monthly
1.73%
Annual
1.80%

eIncomePro is a QDAP. Enjoy up to HKD60,000 total tax deduction[1] per assessment year for the premiums you pay for this QDAP if you are a taxpayer in Hong Kong. The tax saved within each assessment year can be up to HKD10,200 per taxpayer (assuming an applicable tax rate is 17%).

A married couple can jointly claim the tax deductions[1] for the premiums paid for up to HKD120,000 per each tax assessment year, provided that the couple are both taxpayers that have income chargeable to tax, and each deduction claimed by the taxpayer does not exceed the individual limit of HKD60,000.

eIncomePro will pay Monthly Guaranteed Annuity Income for 10 years. The annuity income payments of each month are guaranteed. Get your monthly retirement annuity income from the Deferred Annuity Plan with ease by direct deposit to your designated Hang Seng Bank Savings Account, which gives a regular stream of passive income to support your future daily expense.

Policy currency is available in HKD and USD. A short premium payment period of 5 years with your preferred payment mode (monthly or annual payment mode) to enjoy annuity period of 10 years. You can also select an accumulation period of 5 years, 10 years or 15 years to fit your retirement planning and financial goal.

There are 4 choices of premium option[2] to suit your financial needs.

  • Annual mode: HKD38,000 / 60,000 / 120,000 / 180,000
  • Annual mode: USD4,760 / 7,500 / 15,000 / 22,500
  • Monthly mode: HKD3,230 / 5,100 / 10,200 / 15,300
  • Monthly mode: USD405 / 638 / 1,275 / 1,913

This policy offers short breakeven year at the end of 8th policy year which the Guaranteed Cash Value is more than the Total Premiums Paid. For the details of Guaranteed Cash Value across the policy years, please refer to the Illustration Summary.

If the Life Insured passes away while the Deferred Annuity Insurance policy is in force, the Beneficiary(ies) will receive a Death Benefit to help relieve the financial burden. The Beneficiary(ies) will receive the Death Benefit in a lump-sum payment.

If the Life Insured passes away in an accident before the insurance age of 80 while the Deferred Annuity Insurance policy is in force, in addition to the above Death Benefit, the Beneficiary(ies) designated in the Policy will receive an Accidental Death Benefit that equals to 100% of the Total Premiums Paid for the Basic Plan.

As long as you are eligible to apply for eIncomePro Deferred Annuity Plan (100% Guaranteed), regardless of your underwriting history occupation, health and financial status, you will enjoy guaranteed acceptance without any requirement for medical examination.

The above information is intended as a general summary of information for reference only. Please refer to actual policy for the exact terms, conditions and exclusions of the Plan. If you wish to know more, please read the Product Brochure for details.

Title

Easy retirement planning with deferred annuity for working class

Meet John, aged 40, an accounting firm manager who wants to start preparing for his retirement while enjoying tax deduction benefits at the same time.

John wants to enjoy tax benefits[3]  introduced by the Hong Kong SAR government now while saving for his retirement. So he decides to apply for eIncomePro Deferred Annuity Plan (100% Guaranteed) to secure a steady stream of monthly annuity income for preparing his retirement. He selected Accumulation Period of 15 Years with Annual Mode payment. Total Premiums Paid in 5 years payment period is HKD189,976. This policy offers short breakeven year[4] on the 8th policy year which the Guaranteed Cash Value will reach HKD189,985.

Annual premium during age 40-44

HKD 37,995.20

Potential tax savings per year during premium payment period

HKD 6,459

Monthly Guaranteed Annuity Income during age 55-64

HKD 2,182

Tax deduction benefits with one Qualifying Deferred Annuity Plan for a couple

Meet Peter and Alice, aged 50 and 45, a married couple of 20 years who wants to save up for retirement while enjoying tax deduction benefits from QDAP at the same time.

Peter and Alice wish to choose a QDAP with tax deduction benefits[5] introduced by the Hong Kong SAR government which could help in their retirement savings as well. Peter applies for eIncomePro Deferred Annuity Plan (100% Guaranteed) with a 10-year accumulation period in annual payment mode. Total Premiums Paid in 5 years payment period is HKD899,974.50. This policy offers short breakeven year[6] on the 8th policy year which the Guaranteed Cash Value will reach HKD903,572.

As they are both taxpayers that have income chargeable to tax and Alice does not apply for any products that are eligible for tax deductions[5], Peter can allocate the qualifying deferred annuity premiums to Alice for tax deduction so they could claim a maximum deduction amount of HKD120,000 (HKD60,000 per individual) per year together.

Annual premium during age 50-54

HKD 179,994.90

Potential tax savings for Peter and Alice per year during premium payment period

HKD 20,400

Monthly Guaranteed Annuity Income during age 60-69

HKD 9,698

Eligibility

  • eIncomePro Deferred Annuity Plan (100% Guaranteed) is only available to tax residents of Hong Kong aged between 35-64, the applicant also needs to possess valid Hong Kong Identity Card and Hang Seng bank account
  • Premium payment will be debited from customer’s Hang Seng Bank account or credit card account
  • To comply with relevant regulatory requirement and protect your rights, we are required to conduct audio-recording for this application and you have the right to choose to opt out. If you choose audio recording, please visit our branch to explore other product alternative. By proceeding with this online application, you declare that you agreed and confirmed to conduct this application without audio recording

FAQs

An annuity is a long-term insurance product. The purpose of an annuity is to help policyholders convert their money into a steady stream of income over the long term. It helps policyholders spend their retirement savings in a disciplined way to address the financial risks brought about by longevity. The policyholder pays the premium to an insurance company which will provide regular annuity income to the policyholder immediately or after a designated period of time or after a certain age of the policyholder, for the period specified in the contract. 

QDAP is a deferred annuity product complying with the guidelines issued by the Insurance Authority (IA) and certified by the IA.  Taxpayers are allowed to claim a tax deduction for their qualifying deferred annuity premiums. QDAP must comply with a number of requirement including: the minimum total premiums of HKD180,000, a minimum payment period of 5 years, annuitisation at the age of 50 or above etc. For details, please visit IA’s website.

Lifetime annuity means that annuity income will be distributed to the policyholder till the designated age (aged 100 to 120) or even death. Term annuity means there is a designated annuity period, usually 10 to 20 years.  In theory, for the same amount of total premium paid, the longer the annuity period, the less the amount of annuity income, and vice versa. Therefore, applicant should choose the appropriate plan type based on your financial needs.

The Internal Rate of Return is a way to calculate the return. “Internal” means only the relevant cash flows are calculated, including the invested capital (e.g. premiums), withdrawn amounts (e.g. annuity income) and the time factor. External factors (e.g. inflation rate) are not considered.

The income payout of many deferred annuity products in the market is usually divided into two parts, namely “guaranteed” and “non-guaranteed”. “Non-guaranteed” return is often affected by other factors such as the investment return, claims and profits of the insurance company. In an extreme case, the “non-guaranteed” return could be zero.

On the other hand, the annuity income payout of eIncomePro Deferred Annuity Plan (100% Guaranteed) is 100% guaranteed, without any “non-guaranteed” part.

Accumulation period refers to the period before the start of the annuity period. It includes the premium payment period, which allows the policy value to grow through investment by the insurer.

A QDAP must satisfy the criteria set out in the guideline issued by the Insurance Authority (IA). One of criteria is that annuitant must be at the age of 50 or above when receiving the annuity income. Hence, options of accumulation period available might vary subject to the life insured’s age.

Premium Payment Term (Year)
5
Accumulation Period (Year)
5 10 15
Annuity Period (Year)
10
Insurance Age at Issue 45 – 64
40 – 64 35 – 60

Yes, you may apply online for more than one eIncomePro Deferred Annuity Plan (100% Guaranteed) policy.

If you would like to apply for more than one policy of eIncomePro Deferred Annuity Plan (100% Guaranteed), please note that your total premiums paidIncluding the total premiums paid for following plans (including application in progress and in-forced policies): (1) Income Step-up Life Insurance Plan, (2) Income-Select Life Insurance Plan, (3) Smart Income Life Insurance Plan, (4) Step-Up Income Life Insurance Plan, (5) Target Income Life Insurance Plan, (6) RewardYou Life Insurance Plan, (7) SavourLife Annuity Life Insurance Plan, (8) SavourLife II Annuity Life Insurance Plan, (9) SavourLife II (RMB) Annuity Life Insurance Plan, (10) HarvestLife (RMB) Life Insurance Plan, (11) The Choice 5-YearLife Insurance Plan, (12) FutureEnrich Life Insurance Plan, (13) MaxiAnnuity Life Insurance Plan, (14) PrimeLife Deferred Annuity Life Insurance Plan, (15) MaxiPlus Annuity Life Insurance Plan, (16) FortuneLife Deferred Annuity Life Insurance Plan and (17) eIncomePro Deferred Annuity Plan (100% Guaranteed)for all life insurance plans in HSIC cannot exceed HKD40,000,000.

eIncomePro Deferred Annuity Plan (100% Guaranteed) only has one annuity income option. Monthly guaranteed annuity income will be distributed on each monthiversary starting from the commencement date of the Annuity Period. The monthly guaranteed annuity income will be deposited into the payment account by default unless change request is received in the future.

Currently, we only accept customer to pay premium in HKD for this online application plan. The currency conversion is subject to market-based prevailing exchange rate as determined by HSIC when processing the premium payment to USD, whereas this exchange rate is subject to market fluctuation and will have a direct impact on the amount of the premium payment in HKD.

eIncomePro Deferred Annuity Plan (100% Guaranteed) offers a grace period of 30 days for payment of any premium when due. If a premium is not paid by the end of the grace period and the Non-forfeiture Value is sufficient to cover the amount of the relevant unpaid premium, the terms of Automatic Premium Loan will immediately take effect to pay the relevant unpaid premium. If the Non-forfeiture Value is insufficient to cover the amount of the relevant unpaid premium, the policy will immediately lapse. 

eIncomePro Deferred Annuity Plan (100% Guaranteed) can only be applied via online platform. 

Once you complete the online eIncomePro Deferred Annuity Plan (100% Guaranteed) application form, you will be asked to confirm and verify your details on a preview page. The same day, a confirmation email will be sent to the email address you provided in your application, assuring you that your application of this deferred annuity plan has been received. We will notify you regarding the outcome by sending a SMS to your default mobile number on record at Hang Seng Bank after five to seven working days, and the policy will be delivered to your default postal address on record at Hang Seng Bank once your application is approved. This simplified process frees you from the hassle of typical insurance applications. You can also call our hotline at (852 )2198 7838 for queries.

If you are a Hang Seng Bank Personal e-Banking customer, you can manage your policy(ies), check policy information 24/7 via Personal e-Banking (Insurance Overview Desktop version). You may also call our hotline at (852) 2596 6262 for queries about your policy.

Hang Seng Insurance Company will issue an Annual Summary to you within 40 days after the end of the year of assessment (i.e. 31 March), listing the total amount of qualifying deferred annuity premiums you paid during the year of assessment.

Guaranteed income calculator

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at the guaranteed Internal Rate of Return (“IRR”) of
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Claim procedures

Find details on how to submit your claim and more.
 

Download form

You can find all the forms and documents here for our insurance products.
 

Need more help?

Call us (General enquiry)

(852) 2198 7838

Service hours:

Mon to Fri: 9:00am to 5:30pm

Sat: 9:00am to 1:00pm

Call us (Policy enquiry)

(852) 2596 6262

Service hours:

Mon to Fri: 9:00am to 5:45pm

Sat: 9:00am to 1:15pm

Closed on Sunday and Public Holidays

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Footnote

Other points to note

  1. eIncomePro Deferred Annuity Plan (100% Guaranteed) is underwritten by Hang Seng Insurance. HSIC is authorised and regulated by the Insurance Authority of the HKSAR. Hang Seng Bank Limited (“Hang Seng Bank”) is an insurance agent authorised by HSIC and the insurance products are products of HSIC but not Hang Seng Bank. 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 Hang Seng Bank and you out of the selling process or processing of the related insurance product transaction, Hang Seng Bank will enter into a Financial Dispute Resolution Scheme process with you; however any dispute over the contractual terms of the insurance products should be resolved between HSIC and you directly.
  2. eIncomePro Deferred Annuity Plan (100% Guaranteed) is firstly launched till 30 Jun 2021 under Phase Two of the Insurance Authority's Temporary Facilitative Measures Related to the COVID-19 Outbreak for non-face-to-face selling and application for designated insurance products.
  3. The above information is intended as a general summary of information for reference only. It shall not be construed as an offer to sell or solicitation of an offer or recommendation to purchase or sale or provision of any products of HSIC outside Hong Kong. Please refer to the actual policy for the exact terms, conditions and exclusions of the Plan.
  4. The actual tax savings amount depends on the personal circumstances, which may be different from the amount illustrated in the above example. If you are in doubt about your own tax status, you should obtain independent professional advice.

Remark(s)

  1. The actual tax savings amount depends on the personal circumstances, which may be different from the amount illustrated in the above example. If you are in doubt about your own tax status, you should obtain independent professional advice.
  2. There will be within 0.5% difference between the actual premium figures and the premium options selection due to rounding up of the system setting.
  3. Calculation based on the assumptions that the highest rate of the progressive tax rates applicable to the taxpayer is 17%, which remains the same throughout the premium payment period and the taxpayer has applied one eIncomePro Deferred Annuity Plan (100% Guaranteed) policy only with no tax deductible MPF voluntary contributions nor other QDAP policies during the 5 years premium payment period.
  4. The breakeven year of this policy is at the end of 8th policy year which the Guaranteed Cash Value is more than the Total Premiums Paid. For the details of Guaranteed Cash Value across the policy years, please refer to the Illustration Summary.
  5. Calculation based on the assumptions that the highest rate of the progressive tax rates applicable to both taxpayers is 17%, which remains the same throughout the premium payment period and Peter has applied one eIncomePro Deferred Annuity Plan (100% Guaranteed)  policy only and both of taxpayers in this example do not have any tax deductible MPF voluntary contributions account nor other QDAP policies during the 5 years premium payment period.
  6. The breakeven year of this policy is at the end of 8th policy year which the Guaranteed Cash Value is more than the Total Premiums Paid. For the details of Guaranteed Cash Value across the policy years, please refer to the Illustration Summary.