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AXA launches IncomeBliss Qualifying Deferred Annuity Policy

Empowering retirement planning with dementia advance benefits and the flexibility to choose between cash payouts or reinvestment of annuities
Successful applicants can enjoy exclusive subscription to the 5-Year GoalSaver with up to 4.8% p.a. guaranteed returns upon maturity[1]

AXA Hong Kong and Macau (“AXA”) announced the new qualifying deferred annuity policy IncomeBliss Deferred Annuity Plan (“IncomeBliss”) has been launched. By offering policy currency options of Hong Kong dollars and US dollars, premium payment terms and annuity payment options, along with "Dementia Advance Benefit" and death benefit and many other considerate features, we aim to support our customers side by side in planning a blissful and worry-free retirement life.

IncomeBliss offers premium payment term choices of 5 and 10 years, as well as policy currency options of US dollars and Hong Kong dollars. Additionally, customers can enjoy a tax-deductible limit of up to HKD60,000 per tax year for eligible annuity premiums paid[2] and have a chance to enjoy a 5% annual premium discount[3] during the premium payment term. Policyholders can start withdrawing guaranteed monthly annuity payments as early as age 50[4] for 10 or 20 years[5], along with the opportunity to receive potential additional returns from "monthly non-guaranteed annuity payments"[6]. They can choose to receive monthly annuity payments in cash or accumulate for interests[7] according to personal needs. IncomeBliss also includes a "Dementia Advance Benefit"[8], if the annuitant is first diagnosed as suffering from severe dementias after the end of waiting period[9], a lump sum death benefit[8] will be paid in advance, allowing the patient and his or her family members to reduce the financial stress related to medical expenses and to focus on caring for the condition.

As a lifelong partner to our customers, AXA has always been closely attuned to their needs. Since the launch of our first immediate annuity product “JoyAhead Immediate Annuity Plan” last year, we have been providing stable and reliable lifetime annuity income for both pre-retirees and retirees, as well as further enriching AXA’s product range of retirement solutions. With the launch of this brand-new IncomeBliss Deferred Annuity Plan, AXA now offers the most suitable retirement protection plans for both retirees and working individuals, enabling them to enjoy a fulfilling and worry-free retirement life.

Janet Lee

Chief Life and Health Insurance Officer, AXA Hong Kong and Macau

"The problem of aging population is becoming increasingly serious, and AXA has been committed to filling the protection gap in the market, while actively encouraging the public to engage in comprehensive financial planning early to meet their retirement needs. This year marks the 5th anniversary of Qualifying Deferred Annuity Policy (QDAP), we are pleased to officially launch the IncomeBliss Deferred Annuity Plan. We listen to customer needs, not only provide different policy currency options but also ‘Dementia Advance Benefit’ and death benefit. This Plan not only provides tax deductions for taxpayers, but also holistically take care of their financial and protection needs after retirement, allowing customers to flexibly and autonomously plan for retirement and accumulate wealth effortlessly, as well as enjoying their blissful new stage of life.

Looking ahead, we look forward to working together with the industry to raise public awareness on retirement planning and promise to continue to closely follow the market and customer needs, to develop and launch the most suitable protection plans."

Main features of the IncomeBliss Deferred Annuity Plan include:

  1. Providing potential returns to achieve retirement goals with different premium payment terms to cater to customers’ needs

    AXA understands that working individuals still face different life stages and challenges. IncomeBliss is committed to providing stable returns, enabling customers to enjoy a steady annuity income after retirement. IncomeBliss offers various options, including policy currency options in Hong Kong dollars and US dollars, premium payment terms of 5 years and 10 years, and annuity periods of 10 years or 20 years[5].

    IncomeBliss also provides customers with Accident Premium Waiver Benefit[10]. If the insured suffers total disability caused directly by an accident before the age of 65, for a continuous period of at least 6 months, all premiums under IncomeBliss attributable to the period total of disability will be waived. The Plan also offers an Extended Grace Period Benefit[11]. Starting from the second policy year or one year after any date of reinstatement of the policy (whichever is later), if the policyholder is unfortunately laid off or made redundant, they can apply for an extended premium grace period of up to 365 days to tide over the crisis.
  2. Enhancing family protection during unforeseen circumstances with death benefit and "Dementia Advance Benefit"

    In addition to providing steady and reliable annuity income, IncomeBliss also includes life insurance coverage. In the unfortunate event of the insured passing away, the designated beneficiary will receive a death benefit, providing immediate financial relief during a difficult time. Policyholders can choose the pay out method for the death benefit in advance – in a lump sum payment or by regular instalments. If the policyholder opts for payment by instalments, the death benefit will be paid at regular intervals over a specified period, as agreed upon by the Company. The balance of death proceeds yet to be paid will be accumulated with interest[12] until the total amount of the death benefit and its accumulated interest is paid.

    Furthermore, considering the issue of aging population, dementia, which is closely associated with age, has become one of the most concerning illnesses among seniors. Therefore, the IncomeBliss includes the "Dementia Advance Benefit"[8]. If the insured is first diagnosed with severe dementias after the end of waiting period[9], they will be eligible for an advance payment of the death benefit in a lump sum[8].

    In addition, policyholders can add additional protections such as critical illness, medical, or accident coverage according to their individual needs, providing the most suitable protection plan for themselves and their families.
  3. Flexible annuity withdrawal options to meet the evolving needs of customers

    To assist customers in retirement planning more effectively, the insured of IncomeBliss can choose to start receiving monthly annuity payments as early as age 50[4], and have the option to accumulate the annuity to earn higher potential returns through non-guaranteed interest[7]. Customers can change annuity payment option without additional charges[13] according to their personal needs and goals in their different life stages, in accordance with their preferences and retirement objectives.

Furthermore, eligible customers who apply for IncomeBliss successfully can enjoy a 5% discount off for premium throughout the year[3]. With a premium payment period of 5 years, the total premium discount can be up to 25% of the annual premium[14].

To celebrate the launch of IncomeBliss, from now until June 30 2024, customers who successfully apply for IncomeBliss or other designated basic plans will have the exclusive opportunity to apply for the limited offer of the 5-Year GoalSaver[15]. The 5-Year GoalSaver[15] features a 2-year premium payment period, if customers choose to pay the premium in a lump sum at the time of application, they can enjoy a 19.75%[16] premium discount on the annual premium of the second policy year, with a guaranteed return at maturity of up to 4.8% per annum[1]. By locking in guaranteed return for 5 years, customers can secure their financial plans against changes in interest rates, as well as improving the stability and guaranteed returns of customers' overall investment portfolios. Availability is limited, so do not miss out—apply now on a first-come, first-served basis.


To know more details about the IncomeBliss Deferred Annuity Plan, please visit: https://www.axa.com.hk/en/income-bliss-deferred-annuity-campaign

To know more details about the AXA “IncomeBliss Deferred Annuity Plan Premium Discount” Programme, please visit: Promotion Leaflet

To know more details about the 5-Year GoalSaver, please visit: https://www.axa.com.hk/en/5-year-goal-saver-savings-plan

To know more details about the AXA “5-Year GoalSaver Maturity Bonus” Programme, please visit: Promotion Leaflet

The above information is for reference only. For details of promotional offers and product features, contents, terms and exclusions, please refer to the relevant product instructions, policy terms and promotional leaflets.

Remarks:

[1] It is projected based on the following assumptions (i) lump sum payment with levies (if applicable) is paid in full as planned; (ii) neither death benefit nor surrender value has been or will become payable at policy maturity; (iii) levy (if applicable) is not included in the calculation; (iv) throughout the policy term, the notional amount of 5-Year GoalSaver remains unchanged; and (v) requirements of AXA “5-Year GoalSaver Maturity Bonus” Programme are fulfilled.

[2] Qualifying deferred annuity policies (QDAP) refers to a deferred annuity product that comply with the criteria set out by the Insurance Authority and the relevant premiums are qualify for tax deductions. The tax deductions, allowable under salaries tax or personal assessment, is subject to a cap of HKD60,000 per year. It is an aggregate limit for both qualifying deferred annuity premiums and TVC.

[3] AXA “IncomeBliss Deferred Annuity Plan Premium Discount” Programme only available from 2 April 2024 to 30 June 2024, both dates inclusive (the “Promotion Period”). Successful applicants who choose annual premium payment and the annual premium reaches USD6,000/HKD48,000 or above. For details, please refer to the terms and conditions stated in the campaign leaflet.

[4] Only applicable to policies with issue age of 18 - 40.

[5] The annuity period of 10 years is applicable to policies with issue age of 18 - 65 while the annuity period of 20 years is applicable to policies with issue age of 18 - 55. The issue age for different annuity periods may vary.

[6] We may review and adjust the monthly non-guaranteed annuity payment and terminal dividend from time to time at our absolute discretion. Under some circumstances, the monthly non-guaranteed annuity payment and terminal dividend can be zero. The actual amount of monthly non-guaranteed annuity payment may increase or decrease during the annuity period.

[7] The monthly annuity payment will be left with us to accumulate for interest. The interest rate is not guaranteed and shall be determined by the Company from time to time. Withdrawal from the balance of monthly annuity payment accumulated is free of charge.

[8] Eligibility for the Dementia Advance Benefit is subject to certain criteria and exceptions. The benefit payable under this Dementia Advance Benefit is equivalent to the amount of death benefit payable under IncomeBliss as if the annuitant died on the date of first diagnosis of Severe Dementias. Once this Dementia Advance Benefit becomes payable, the policy will automatically terminate. Please refer to the policy contract for further details.

[9] Waiting period means a period of 5 years for basic plan with a premium payment term of 5 years; or 10 years for basic plan with a premium payment term of 10 years, following the policy date or any date of reinstatement of the policy, whichever is later. Please refer to the policy contract for further details.

[10] Eligibility for the accident premium waiver benefit is subject to certain criteria and exceptions. The Company will waive all premiums under IncomeBliss attributable to the period of total disability if the annuitant suffers from total disability for a continuous period of not less than 6 months and the accidental bodily injury which causes such total disability occurs on or after the annuitant’s 18th birthday and before the policy anniversary on or immediately following the annuitant’s 65th birthday. This Accident Premium Wavier Benefit can be claimed once only among all policies of IncomeBliss on the annuitant. Once this Accident Premium Waiver Benefit is claimed under any one of the policies of IncomeBliss issued by the Company on the annuitant, this benefit under all of such IncomeBliss policies will automatically cease and no longer be available. Please refer to the policy contract for further details.

[11] Eligibility for the Extended Grace Period Benefit is subject to certain criteria and exceptions. The policy owner is required to provide the relevant evidence to the Company. The Extended Grace Period Benefit can be claimed once only under the policy. Please refer to the policy contract for further details.

[12] The interest rate is not guaranteed and will be determined by the Company from time to time at our sole discretion.

[13] Policyholder may request to change annuity payment option by sending written notice to the Company. The change of annuity payment option is free of charge. Any approved change to the annuity payment option will take effect from the next policy monthiversary.

[14] 25% discount of the annual premium refers to within the designated promotion period, successful applicants of the basic plan of the IncomeBliss and meet the designated requirements, who can enjoy the total premium discount of 5% per year within the 5 year payment period.

[15] 5-Year GoalSaver is a limited offer and acceptance of your policy application is subject to product availability at the time of application. AXA reserve the right to decline the application of 5-Year GoalSaver at any time. Effective 2 April 2024, each person can apply for one policy only, either as a policy owner or insured.

[16] The premium discount is equal to 19.75% on the annual premium of the second policy year, where the discount percentage as shown is subject to rounding difference. In the event that the Company is to refund premiums paid under the policy, the balance of the annual premium of the second policy year paid by the Company to your policy under the premium discount will not be included in the amount to be refunded.