Want to generate passive income with ease? Online tax deductible annuity plan provides 10 years of guaranteed fixed income and a HKD100,000 lump-sum Additional COVID-19 Benefit for free.
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
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.
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 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 on the 8th policy year which the Guaranteed Cash Value will reach HKD189,985.
Annual premium during age 40-44
Potential tax savings per year during premium payment period
Monthly Guaranteed Annuity Income during age 55-64
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 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 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, 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
Potential tax savings for Peter and Alice per year during premium payment period
Monthly Guaranteed Annuity Income during age 60-69
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)
|Accumulation Period (Year)
|Annuity Period (Year)
|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.
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.
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