Hang Seng Bank : Insurance Introduces FortuneLife Deferred Annuity Life Insurance Plan with Enhanced Benefit to Support Stable Retirement (3 May 2024)

3 May 2024

Hang Seng Insurance Introduces FortuneLife Deferred Annuity Life Insurance Plan with Enhanced Benefit to Support Stable Retirement

Hang Seng Insurance announced the launch of the enhanced version of the FortuneLife Deferred Annuity Life Insurance Plan1 ('FortuneLife'), a Qualifying Deferred Annuity Policy ('QDAP'). This updated plan features a projected Total Internal Rate of Returns ('IRR') ranging from 3.79% to 4.35%2 for HKD and USD policies, and from 2.60% to 3.19%2 for RMB policy, designed to help individuals secure a stable passive income for a comfortable retirement.

In a recent survey conducted among 550 working professionals in Hong Kong aged 18-65, only about 22% expressed confidence in the adequacy of their retirement funds. Among those feeling confident, about 70% had begun their saving plans early for retirement, and about 61% had incorporated passive income strategies into their retirement plans. Among the total number of respondents, less than one third had purchased QDAP, but about 50% of respondents are now considering or planning to invest in QDAP to ensure a steady income in retirement, with interest particularly strong among the younger demographic, where nearly 60% are keen on these policies.

This survey result confirms a significant trend observed by Hang Seng Insurance: Increasing number of young people are investing in QDAP in recent years, with a 150% increase in QDAP adoption among customers aged 31-40 in 2023 compared to the first year of its launch in 2019. Joe Lam, Chief Executive at Hang Seng Insurance, said, "With Hong Kong residents enjoying the world's second-highest life expectancy according to the latest United Nations statistics, it's crucial to prioritise early retirement planning. QDAP has been instrumental in providing a reliable passive income to support retirement needs."

Additionally, the enhanced FortuneLife plan offers flexible premium payment terms of 5 or 10 years and policy options in HKD, RMB and USD. It also includes multiple accumulation and annuity period choices, application for tax deductions of up to HKD60,0003 per tax assessment year and annual tax savings of up to HKD10,2003. Policyholders of FortuneLife also benefit from life protection, Accidental Death Benefit, Accelerated Death Benefit, and Unemployment Benefits. For details of the enhanced FortuneLife plan, please refer to hangseng.com/annuity.

An exclusive promotional offer is available until 30 June 2024, providing new enrolees with up to 34% off for their first-year premium^. Please note that only the premium paid net of any marketing offers (e.g. discount, premium waiver, etc) might be eligible for tax concession.

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Photo Caption

Photo 1

Hang Seng Insurance launches an enhanced version of the FortuneLife Deferred Annuity Life Insurance Plan, a Qualifying Deferred Annuity Policy. This updated plan features a projected Total Internal Rate of Returns ranging from 3.79% to 4.35% for HKD and USD policies, and from 2.60% to 3.19% for RMB policy, designed to help individuals secure a stable passive income for a comfortable retirement.

Hang Seng Insurance Introduces FortuneLife Deferred Annuity Life Insurance Plan with Enhanced Benefit to Support Stable Retirement/ 3

Remarks:

1. FortuneLife Deferred Annuity Life Insurance Plan ("the Plan") is a life insurance plan and is not equivalent or similar to any kind of bank deposit. It is underwritten by Hang Seng Insurance Company Limited ("Hang Seng Insurance"). The policyholder is subject to the credit risk of Hang Seng Insurance and early surrender loss. The information of this press release does not contain the full terms of the policy and the full terms can be found in the relevant policy document.
2. Internal Rate of Returns for HKD/USD/RMB Policy:

The above is the Internal Rate of Returns (IRR) reference for a 45-year-old male non-smoker. Under the assumption that the Annuity Income and Annual Dividends payable during the Annuity Period are all withdrawn, at policy maturity, the Projected Total IRR is 3.79% - 4.35% while the Guaranteed IRR is 1.90%- 2.65% for HKD/USD policy; the Projected Total IRR is 2.60% - 3.19% while the Guaranteed IRR is 0.44% -1.27% for RMB policy. The Total Rate of Returns is non-guaranteed, and IRR is subject to the selected premium payment mode, payment term, accumulation period, annuity period and annuity income option. The IRR covers both monthly payment and annual payment. The examples are provided only for reference and should not be regarded as a substitute for professional advice. The actual coverage is subject to the terms and conditions of the policy. Customers should take into account their own actual circumstances and insurance needs and affordability before considering enrolling in this Plan. Figures are subject to rounding differences. For more details about the Internal Rate of Returns, please refer to the product brochure.

1. Apply for up to HKD60,000 total tax deduction per assessment year with the qualifying annuity premiums. The tax saved within each assessment year can be up to HKD10,200 per taxpayer per tax year. Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. Please note that only the premium paid net of any marketing offers (e.g. discount, premium waiver, etc) might be eligible for tax concession and the actual tax benefits of this Policy would depends on personal tax position (e.g. salaries income and assessable profits) and you should always consult with a professional tax advisor if you have any doubts. The Life insurance plan is underwritten by Hang Seng Insurance. Subject to terms and conditions; please be aware of the associated product risks and credit risks. Surrender may result in loss.
2. The above information is intended as a general summary of information for reference only. For details, please visit https://www.hangseng.com/en-hk/personal/insurance-mpf/retirement-wealth-education/fortunelife-deferred-annuity/.

^The promotion period of the premium offer of the plan (USD/HKD policy) is from 1 May 2024 to 30 June 2024 (both days inclusive) ("Promotion Period"). For the Terms and Conditions relating to the first-yearpremium discount, please visit https://www.hangseng.com/content/dam/hase/emkt/lifeins_offer.pdf

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Important Information about QDAP

Certification of QDAP - "The Plan" has been certified by the Insurance Authority ("IA") as a Qualifying Deferred Annuity Policy ("QDAP"). The IA certification of this plan is not a recommendation or endorsement of the policy nor does it guarantee the commercial merits of the policy or its performance. It does not mean the policy is suitable for all policyholders nor is it an endorsement of its suitability for any particular policyholder or class of policyholders. The policy has been certified by the IA but such certification does not imply official recommendation. The IA does not take any responsibility for the contents of the product, makes no representation as to its accuracy or completeness, expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the product.

Tax Implication on QDAP - Please note that the QDAP status of this product does not necessarily mean you are eligible for tax deduction available for QDAP premiums paid. This product's QDAP status is based on the features of the product as well as certification by the IA and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of HKSAR before you can claim these tax deductions. Please note that the Plan may be sold to the person(s) aged 65 or above, who may have plan to retire or retired during the premium payment period of the Plan. In this case, you may wish to further visit your eligibility of tax deduction for your premiums paid during the premium payment period and seek your independent tax advice as appropriate. Policyholders who are not subject to salaries tax or tax under personal assessment in HKSAR might not be eligible for tax deduction benefits. Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. Please note that only the premium paid net of any marketing offers (e.g. discount, premium waiver, etc.) might be eligible for tax concession and the actual tax benefits of this policy would depends on personal tax position (e.g. salaries income and assessable profits) and you should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws and regulations or interpretations, and how they may affect you. Further information on tax concessions applicable to QDAP may be found at the website of IA.

About Hang Seng Insurance

Hang Seng Insurance Company Limited ('Hang Seng Insurance'), established in 1965, is a wholly-owned subsidiary of Hang Seng Bank. Leveraging Hang Seng Bank's local extensive network of online and offline banking channels, Hang Seng Insurance is one of the top players in Hong Kong insurance market, offering a diverse range of personal insurance and corporate employee benefit products and services that meet the needs of customers from all walks of life and at all life stages.

Appendix 1

The enhanced version of Hang Seng Insurance's FortuneLife Deferred Annuity Life Insurance Plan offers a projected Total Rate of Returns ranging from 3.79% to 4.35% for HKD and USD policies, and from 2.60% to 3.19%, for RMB policy.

• Apply for up to HKD60,000 of total tax deduction per assessment year
  with the qualifying annuity premiums. The tax saved within each assessment year can be up to HKD10,200 per taxpayer per tax year2*
• Annual Dividends3 to enhance wealth
• Extended various supplementary benefits, including life protection, Accidental Death Benefit, Accelerated Death Benefit, and Unemployment Benefits
• Easy application with guaranteed acceptance6
• For details, please refer to hangseng.com/annuity.

• The above is the Internal Rate of Returns (IRR) reference for a 45-year-old male non-smoker. Under the assumption that the Annuity Income5 and Annual Dividends payable3 during the Annuity Period4 are all withdrawn, at policy maturity, the projected total IRR is 3.79% - 4.35% while the guaranteed IRR is 1.90%- 2.65% for HKD/USD policy; the projected total IRR is 2.60% - 3.19% while the guaranteed IRR is 0.44% -1.27% for RMB policy. The Total Rate of Returns is non- guaranteed, and IRR is subject to the selected premium payment mode, payment term, accumulation period, annuity period4 and annuity income5 option. The IRR are covered both monthly payment and annual payment. The above content is based on the illustration summary of the Plan for the assumed scenario and may differ from the actual circumstances. The examples are provided only for reference and should not be regarded as a substitute for professional advice. The actual coverage is subject to the terms and conditions of the policy. Customers should take into account their own actual circumstances and insurance needs and affordability before considering enrolling in this Plan. Figures are subject to rounding differences. For more details about the Internal Rate of Returns, please refer to the product brochure.

• Please note that only the premium paid net of any marketing offers (e.g. discount, premium waiver, etc) might be eligible for tax concession.