Press release
Press release
FWD’s New Journey Deferred Annuity Policy Offers Flexible Savings Opportunities for Life’s Next Steps
11 December 2019
available-for Community Care
Hong Kong, 11 December 2019 – FWD Hong Kong (‘FWD’) has introduced the Journey Deferred Annuity Plan, a Qualifying Deferred Annuity Policy (QDAP) that enables annuitants to receive monthly annuity payments for a period of 10 years under a 5-year premium payment term and allows a breakeven period of as short as eight years1. The new plan enables customers to plan for their retirement early by accumulating the savings and wealth needed to enjoy retirement to the full. Customers also enjoy the option of receiving their annuity payment as monthly cash payments or accumulating payments to earn interest2 if that better suits their financial situation.
“Hong Kong people generally look for more diversified retirement products to accumulate and boost savings as Hong Kong is one of the cities which enjoys long life expectancy and retirement living,” said Kelvin Yu, Chief Actuary of FWD Hong Kong & Macau. “According to Insurance Authority market statistics for Q3 2019, the case count of annuities has increased by close to 380% since the launch of QDAPs as compared with same period last year. That reflects the launch of QDAPs with tax benefits has enhanced public awareness on early retirement planning. In view of market needs, FWD is ideally positioned to offer a variety of annuity plans, including this new Journey Deferred Annuity Plan.”
Those enrolling in the Journey Deferred Annuity Plan will also find that the plan complements FWD’s existing Journey 120 Annuity Plan (J120), offering one of the favourable options for retirement planning. While the Journey Deferred Annuity Plan supports customers in the early years of retirement by growing wealth and savings, the J120 supports customers in the years beyond that by providing a steady stream of annuity payments.
The Journey Deferred Annuity Plan is certified by the Hong Kong Insurance Authority3, which enables the insured to claim a tax deduction on premiums paid up to the amount of HK$60,000 per tax assessment year4. At the same time, the plan provides a death benefit for the insured for extra protection in addition to steady annuity payments.
FWD’s Journey Deferred Annuity Plan accepts applicants aged 19 to 615. If the insured joins the plan prior to age 465, they can begin receiving monthly annuity payments for a period of 10 years beginning at age 515; those joining the plan at or after age 465 can begin receiving payments at the end of the five-year premium payment term. The plan’s monthly annuity payments consist of guaranteed and non-guaranteed types, which secures those insured with stable retirement income while delivering a potential extra boost to retirement income6.
Applying for the annuity plan is simple and hassle free. No medical exam is required if the policy’s total annualised premium amount does not exceed the aggregate per insured limit of US$875,000 (approx. HK$6.83 million). Within the promotion period, FWD offers an up to 8% first year premium discount for the Journey Deferred Annuity Plan7.
*Please refer to the product brochure and policy provisions for relevant terms, details and key product risks. Please also refer to the terms and conditions of the premium discount offer for details.
1The total breakeven period of the policy refers to number of years after policy inception such that the total cash value of the policy is equal to the total premium paid. As the total cash value is non-guaranteed, the total breakeven period is non-guaranteed.
2The interest earned is non-guaranteed.
3Certification of a qualifying deferred annuity policy by the Insurance Authority does not imply official recommendation or endorsement of the policy, nor does it guarantee the commercial merits of the policy or its performance.
4The tax deductible limit is an aggregate of qualifying deferred annuity premiums and MPF tax-deductible voluntary contributions paid. Tax deduction is subject to the latest rules and regulation of Inland Revenue Department of Hong Kong Special Administrative Region.
5Age is based on the Insured’s age next birthday.
6The Monthly Non-guaranteed Annuity Payment is not guaranteed and is based on the current dividend scales, which are not guaranteed, of FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) “FWD” and are determined at least annually and may be adjusted more frequently than annually based on a series of factors including but not limited to market conditions, investment outlook, expenses, policy persistency, claims experience, and FWD’s investment return. The actual amount payable may change anytime, with the values being higher or lower than those illustrated. Under some circumstances, the non-guaranteed benefits may be zero.
7Terms and conditions apply.
“Hong Kong people generally look for more diversified retirement products to accumulate and boost savings as Hong Kong is one of the cities which enjoys long life expectancy and retirement living,” said Kelvin Yu, Chief Actuary of FWD Hong Kong & Macau. “According to Insurance Authority market statistics for Q3 2019, the case count of annuities has increased by close to 380% since the launch of QDAPs as compared with same period last year. That reflects the launch of QDAPs with tax benefits has enhanced public awareness on early retirement planning. In view of market needs, FWD is ideally positioned to offer a variety of annuity plans, including this new Journey Deferred Annuity Plan.”
Those enrolling in the Journey Deferred Annuity Plan will also find that the plan complements FWD’s existing Journey 120 Annuity Plan (J120), offering one of the favourable options for retirement planning. While the Journey Deferred Annuity Plan supports customers in the early years of retirement by growing wealth and savings, the J120 supports customers in the years beyond that by providing a steady stream of annuity payments.
The Journey Deferred Annuity Plan is certified by the Hong Kong Insurance Authority3, which enables the insured to claim a tax deduction on premiums paid up to the amount of HK$60,000 per tax assessment year4. At the same time, the plan provides a death benefit for the insured for extra protection in addition to steady annuity payments.
FWD’s Journey Deferred Annuity Plan accepts applicants aged 19 to 615. If the insured joins the plan prior to age 465, they can begin receiving monthly annuity payments for a period of 10 years beginning at age 515; those joining the plan at or after age 465 can begin receiving payments at the end of the five-year premium payment term. The plan’s monthly annuity payments consist of guaranteed and non-guaranteed types, which secures those insured with stable retirement income while delivering a potential extra boost to retirement income6.
Applying for the annuity plan is simple and hassle free. No medical exam is required if the policy’s total annualised premium amount does not exceed the aggregate per insured limit of US$875,000 (approx. HK$6.83 million). Within the promotion period, FWD offers an up to 8% first year premium discount for the Journey Deferred Annuity Plan7.
*Please refer to the product brochure and policy provisions for relevant terms, details and key product risks. Please also refer to the terms and conditions of the premium discount offer for details.
- Ends -
2The interest earned is non-guaranteed.
3Certification of a qualifying deferred annuity policy by the Insurance Authority does not imply official recommendation or endorsement of the policy, nor does it guarantee the commercial merits of the policy or its performance.
4The tax deductible limit is an aggregate of qualifying deferred annuity premiums and MPF tax-deductible voluntary contributions paid. Tax deduction is subject to the latest rules and regulation of Inland Revenue Department of Hong Kong Special Administrative Region.
5Age is based on the Insured’s age next birthday.
6The Monthly Non-guaranteed Annuity Payment is not guaranteed and is based on the current dividend scales, which are not guaranteed, of FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) “FWD” and are determined at least annually and may be adjusted more frequently than annually based on a series of factors including but not limited to market conditions, investment outlook, expenses, policy persistency, claims experience, and FWD’s investment return. The actual amount payable may change anytime, with the values being higher or lower than those illustrated. Under some circumstances, the non-guaranteed benefits may be zero.
7Terms and conditions apply.
About FWD Hong Kong & Macau
FWD Hong Kong offers life and medical insurance, general insurance, employee benefits, and financial planning. Its life insurance and general insurance operating entities have been assigned strong financial strength ratings by international rating agencies — FWD Life Insurance Company (Bermuda) Limited is rated “A3” by Moody’s and “A” by Fitch; and FWD General Insurance Company Limited is rated “A” by Fitch. FWD Macau provides a suite of life and medical insurance.
FWD Hong Kong & Macau is a part of the FWD Group, the insurance business of investment group, Pacific Century Group. FWD Group spans Hong Kong & Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia.
By creating fresh customer experiences with easy-to-understand products supported by digital technology, FWD aims to become a leading pan-Asian insurer that changes the way people feel about insurance.
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(Incorporated in Bermuda with limited liability). All rights reserved.
(Incorporated in Bermuda with limited liability). All rights reserved.