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FTLife launches new "IncomePro" Annuity Plan (Single Premium) for customers to enjoy monthly income immediately after 1 Year

2018-08-13 12:21 865

HONG KONG, Aug. 13, 2018 /PRNewswire/ -- After the launch of the new "IncomePro" Annuity Plan in mid-July, FTLife Insurance Company Limited ("FTLife") rolls out the "IncomePro" Annuity Plan with a single premium. This new plan offers another alternative to those who have enough capital at hand to start a flexible savings plan for retirement and enjoy monthly income immediately after the policy is in force for 1 year.

FTLife launches new "IncomePro" Annuity Plan (Single Premium) for customers to enjoy monthly income immediately after 1 year
FTLife launches new "IncomePro" Annuity Plan (Single Premium) for customers to enjoy monthly income immediately after 1 year

With the intensifying trends of ageing and fewer children in Hong Kong, the elderly dependency ratio continues to climb, indicating that the proportion of adults supporting retired elderly (either through direct support from working children or various forms of public welfare from the government) is decreasing[1]. Plan smart is the first step to a better retirement with total peace of mind. With this new plan, customers can pay a single premium, opt for a 1-year accumulation period and enjoy monthly income immediately after the policy is in force for 1 year. Together with the investment returns, customers can get back the principal within 4 years[2]. The new plan also pays 101% of total premium paid as Death Benefit to protect their beloved families. Moreover, the first-in-market[3] Policy Continuation Option and extra protection all help customers to live life to its fullest after retirement.

Gerard Yang, CEO of FTLife, said, "According to a report released by Japan's Ministry of Health, Labour and Welfare in 2017, the men and women in Hong Kong were expected to live to 82 years and 88 years respectively, edging out those of Japan and Switzerland and making the city on top of the life expectancy rankings worldwide. We are happy to see the launch of the public annuity scheme which provides extra protection for retirees reaching the age of 65 or above. FTLife seeks to satisfy our customers' needs from saving for retirement to handing down of wealth. The new 'IncomePro' Annuity Plan gives Hongkongers another annuity option in the private market, and the newly launched single premium plan offers those with sufficient capital a more flexible solution for savings and retirement planning."

Many accumulation periods and income periods options
The Plan offers different choices of accumulation period (1, 3 or 6 years) and income period (20, 25 or 30 years / till age 88 or 100) for clients with different retirement plans.

Case Studies[4]





Case 1

Case 2


Issue age

64

50


Planned age of retirement

65

56


Premium payment period

Single Premium

Single Premium


Premium

HK$1,560,622

HK$1,561,086


Accumulation period

1 year

6 years


Income period

25 years

Monthly Income approximately
HK$6,034 - HK$9,705 (Increasing
annually during Income Period)

Total income approximately

HK$2,319,248

i.e. receive approximately
HK$7,731 per month

Till age 88

Monthly Income approximately
HK$6,386 - HK$ 11,798
(Increasing annually during Income
Period)

Total income approximately
HK$3,389,091

i.e. receive approximately
HK$8,826 per month


Rate of return

Total income is 1.5 times of total
premium

Total income is 2.2 times of total
premium

Some figures of the above case illustrations are rounded up or down, which may result in some discrepancies in the total sum. Monthly income and rate of return are not guaranteed in the income period.

First-in-market[3] Policy Continuation Option
Instead of terminating the policy after the death of the insured like other existing plans in the market, the policyowner of this new annuity plan can apply for the first-in-market[3] "policy continuation option" during the lifetime of the insured and assign a beneficiary as the new insured and policyowner (where applicable) upon the death of the insured. The policy shall then remain effective with one's loved ones continuing to receive a monthly income[5] with all protections offered by the product also remain unchanged.

Four Areas of Comprehensive Protection and Flexible Arrangement
The plan provides all-round protection for clients to travel the world, complemented by advanced critical illness benefit, terminal illness benefit and loss of beloved benefit, enabling clients to enjoy life to the fullest worry-free. The innovative protection covers:

  1. Travel medical and accident benefit -- During the income period, the policyowner is entitled to reimbursement of travel medical expenses of up to 10% of the total premium paid per policy year[6]. Moreover, an additional one-off accidental death or disability benefit[6] of lump-sum up to 100% of total premiums paid is offered, allowing clients to travel the world and fully enjoy every journey.
  2. Advanced critical illness benefit -- On or after the 6th policy anniversary, if the insured is diagnosed with new cancer, stroke or heart attack, upto 50%[7] of the remaining future monthly income amount will be paid in advance so that that client can receive the required treatments timely.
  3. Terminal illness benefit -- If the insured is diagnosed with terminal illness[8] during the income period, a lump-sum death benefit will be paid in advance, and additional monthly income will be paid in the next 12 months to alleviate the financial burden of the client during such difficult times.
  4. Loss of beloved benefit -- During the income period, upon the death of the insured's spouse or any of his or her children, the policyowner shall receive an extra lump-sum benefit of 20% of the total premium paid[9] to take care of the needs of the client and his/her family.
  5. Flexible change of accumulation period / income period[10] -- Depending on his or her retirement needs, client may choose to advance or delay receipt of annuity, and also prolong or shorten the income period. The plan allows customers to plan their future life in retirement with flexibility and gives them full control on the date and time to start receiving annuity payment.

Christine Yeung, Chief Product Officer of FTLife, stressed, "Since the government's launch of the public annuity scheme, people are more interested in retirement products and annuity plans. FTLife always puts customers first and dedicates to innovation. The new 'IncomePro' (Single Premium) has various options for higher liquidity and financial flexibility. The time needed to get back principal is as short as 4 years, and the projected policy value[11] may be comparably higher than the cash value offered by the public annuity scheme. If unfortunately diagnosed with a critical illness, the insured will receive annuity in advance to mitigate financial burden. Apart from different options of accumulation period and income period, customers can flexibly advance, defer, prolong or shorten the income period to best suit their financial needs. They can also withdraw the monthly income in cash or keep the monthly income in the policy at an annual interest rate of 4.25%[12] to grow wealth. 'IncomePro' incorporates travel medical benefit, advanced critical illness benefit, loss of beloved benefit to create an all-encompassing solution, which is superior to the public annuity scheme. If the insured dies early and a lump-sum death benefit is chosen, 101% of total premiums paid will be paid to protect his/her family. This is another advantage over the public annuity scheme which only pays the guaranteed cash value."

Angela Yam, Chief Marketing Officer of FTLife, added, "We hope this flagship product can help customers plan for a better retirement so that they can enjoy every moment in the golden years. At FTLife, we strive to understand and stay abreast of the needs of retirees. To that end, FTLife launches an online questionnaire on retirement and a lucky draw[13] for those who filled out the questionnaire to help us collect relevant information. From now on until 31 August 2018, visit our online questionnaire webpage (social.ftlife.com.hk) and complete a simple questionnaire and a lucky draw form, one will be able to win the grand prize being HK$8,000 worth of travel coupons and another 100 lucky winners will receive a toy glider from FTLife."

Remarks:

  1. Source: "Analysis of Dependency Trends in Hong Kong" from Hong Kong Monthly Digest of Statistics, November 2014, Census and Statistics Department.
  2. Principal refers to the single premium amount. Based on the company's current assumed investment return, the sum of the total amount of Monthly Income paid (non-guaranteed) and surrender value (non-guaranteed) will be greater or equal to the principal at the 4th Policy Anniversary. However, withdrawal of Guaranteed Cash Value or early surrender will affect the future benefits of the policy and the policy may be terminated.
  3. "First-in-market" items are relative to the same type of annuity plans in the market as of June 2018.
  4. The rate of return may vary with age of the insured and with different plans. It is not a guaranteed return. Monthly income may be adjusted on each policy anniversary and the actual amount during the income period may vary.
  5. Upon the death of the insured during the accumulation period, and in the case which the beneficiary shall become the policyowner, the beneficiary may choose to receive a lump-sum death benefit. Application for such change is subject to the prevailing administrative rules of the Company.
  6. Maximum travel medical benefit is USD10,000 per insured per policy. Maximum accidental death or disability benefit is USD200,000 per insured per policy.
  7. A percentage of the remaining future Monthly Income will be paid based on the attained age of the insured when he/she is diagnosed with designated critical illneess: Attained age reaches 80 or below, the percentage is 50%; attained age reaches 81 or above, the percentage is 30%. After the critical illness claim payment, the guaranteed cash value, terminal dividend and future monthly income will be reduced accordingly.
  8. Terminal illness means the unequivocal diagnosis by a doctor of an illness that is expected to result in the death of the insured within 12 months. The terminal illness benefit will only be paid once. The policy will be terminated after the benefit is paid.
  9. Subject to the maximum of USD 10,000 per insured per policy, this loss of love benefit will only be paid once. Immediate coverage for death resulted from an accident, but a 2-year waiting period will be applied to death resulted from illness.
  10. Client can apply for this option starting from the 30th policy monthly anniversary. The period being changed should match any of the pre-set options of the plan. No application of such change will be accepted after the commencement of income period. Application for such change is subject to the prevailing administrative rules of the Company.
  11. Non-guaranteed monthly income and terminal dividend are not guaranteed.
  12. The interest rate is not guaranteed.
  13. The lucky draw winner list will be published on FTLife's online questionnaire webpage, Sing Tao Daily and The Standard on 14 September 2018. Trade promotion competition licence number: 050784. For the terms and conditions of the lucky draw and promotion, please visit the online questionnaire webpage.

Important notes: 

  • The information contained in this document is intended as a general summary of information for reference only. For details, please refer to relevant product brochure and client incentive leaflet. Please refer to the policy provision for details of full terms and conditions.
  • For further details, please contact FTLife's Customer Service Hotline on 2866 8898.
  • This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provision of any insurance product outside Hong Kong. FTLife does not offer or sell any insurance product in any jurisdictions outside Hong Kong, in which such offering or sale of the insurance product is illegal under the laws of such jurisdictions.

About FTLife Insurance Company Limited
FTLife Insurance Company Limited ("FTLife") is one of Hong Kong's largest life insurance companies. Capitalising on a heritage of professionalism and excellence in serving clients, FTLife seeks to become a leading insurance group in Asia. It serves individual and institutional clients from a diverse portfolio of financial protection and wealth management products. FTLife aims to excel by cultivating lasting relationships and dedicates itself to providing clients with best-of-breed financial services to help them lead fulfilling lives.

Media inquiries
FTLife Insurance Company Limited
Branding, Marketing & Communication 
Tel: +852-2591-8888 
Email: ftlhk.mkt@ftlife.com.hk 

Photo - https://photos.prnasia.com/prnh/20180813/2210165-1

Source: FTLife
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