The plan provides incremental annuity income, helping Mr. Cheung to counteracts inflation. The plan also provides Annual Guaranteed Bonus and Special Guaranteed Bonus; Mr. Cheung may choose to receive Annuity Income in cash or to retain it in the Policy for accumulating interest, and reaping potential upside returns over a period of time.
During the Annuity Period, the plan expects to pay a non-guaranteed Annual Dividend to your policy at each policy anniversary, Mr. Cheung may accumulate these dividends in the policy account to earn interest for future use or withdraw them according to his needs. In the event of policy termination, a lump-sum non-guaranteed Terminal Dividend (if any) may become payable to Mr. Cheung or the Beneficiary(ies), providing extra potential returns.
As Mr. Cheung is a Hong Kong taxpayer having income chargeable to tax, he could potentially enjoy tax deduction of up to HKD60,000 for the premium paid. Potential tax savings can be up to HKD10,200 per taxpayer in a tax assessment year (assuming the maximum total tax deductions for qualifying annuity premiums and MPF tax deductible voluntary contributions for the applicable tax assessment year is HKD60,000 and the applicable tax rate is 17%).
Annual Premium: HKD60,000
Potential tax savings in a tax assessment year: HKD10,200