First in Hong Kong to provide dementia advance benefit plus up to 365 days grace period extension for premium payment
Image: AXA building in Milan, Italy. (Credit: Wikipedia.org/Kokky92.)
The current economic environment is uncertain and the cost of living continues to rise, leaving Hong Kong people increasingly concerned about their retirement savings. As a lifetime partner for its customers, AXA has launched its ‘IncomeEnrich Deferred Annuity Plan’ (‘IncomeEnrich’), the first Qualifying Deferred Annuity Policy (‘QDAP’) in the market to offer a dementia advance benefit and stable monthly annuity payments, to provide additional protection for customers’ retirement lives. Customers can also enjoy a premium waiver or extend the premium grace period under special circumstances. Even in the face of unexpected challenges, customers can still enjoy their golden years.
“Since AXA launched its first QDAP last year, the results have been encouraging. The proportion of the customers aged 31-40 has been raised from 9% to 20% of our total QDAP customers, showing that more young people start prepared for retirement, and QDAP becomes more popular among citizens. As life expectancy increases, we have deliberately added a dementia advance benefit to the new product, to alleviate the heavy financial burden that may derive from severe dementias. At the same time, we understand the financial pressures faced by customers given the current economic fluctuations. If the policy owner is laid off or made redundant, he or she can apply for an extension of the premium payment grace period up to 365 days, so that they can plan their ideal retirement life without fear of uncertainties,” said Mr. Kevin Chor, Chief Life and Market Development Officer, AXA Hong Kong and Macau.
Offers accident premium waiver benefit & complimentary extended grace period benefit to cope with unexpected challenges
In times of uncertainty, customers may be affected by unexpected incidents that will impede their future retirement planning. IncomeEnrich offers customers an accident premium waiver benefit. If the annuitant suffers from total disability caused solely and directly by an accident before age 65 for a continuous period of not less than 6 months, all premiums under IncomeEnrich attributable to the period of total disability will be waived. The plan also offers a complimentary extended grace period benefit, allowing the policy owners to enjoy an extended grace period for premium payments up to 365 days if they are laid off or made redundant, thereby providing support in difficult times.
Newly added dementia advance benefit to relieve the financial burden
IncomeEnrich is Hong Kong’s first QDAP with a dementia advance benefit. If the annuitant is first diagnosed with severe dementias after the end of the premium payment, they will be paid a lump sum death benefit in advance as a dementia advance benefit[1], helping those insured and their families to relieve the financial pressure of medical expenses and focus on the treatment.
Annuity start age can be as early as age 50 providing high flexibility
IncomeEnrich provides an annuity period of 10 or 20 years, starting at the age of 505 at the earliest. The plan also has a premium payment term of 5 or 10 years at the customer’s choice. This high flexibility allows customers to plan their retirement life more easily. IncomeEnrich is certified by the Insurance Authority as a Qualifying Deferred Annuity Policy. Individual applicants can enjoy a maximum tax deductible limit up to HKD60,000 annually for qualifying annuity premiums paid, while married couples can enjoy a maximum tax deductible limit up to HKD120,000[6], provided that the deduction claimed by each taxpayer does not exceed the individual limit of HKD60,000.
Main features of the ‘IncomeEnrich Deferred Annuity Plan’:
- Certified by the Insurance Authority as a Qualifying Deferred Annuity Policy, provides a maximum tax deductible limit up to HKD60,000
- Offers 5- or 10-years premium payment term and 10- or 20-years annuity period options with financial flexibility
- Offers accident premium waiver benefit — if the annuitant suffers from total disability caused solely and directly by an accident before age 65 for a continuous period of not less than 6 months, all premiums under basic plan attributable to the period of total disability will be waived
- Complimentarily extending the grace period for premium payments up to 365 days if the policy owner is laid off or made redundant
- Provides dementia advance benefit, paying a lump sum death benefit in advance to relieve financial pressure at difficult time
Source: Company Press Release