AXA launches ‘IncomeEnrich Deferred Annuity Plan’

First in Hong Kong to provide dementia advance benefit plus
Up to 365 daysgrace period extension for premium payment

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^[1] 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.

Kevin Chor

Chief Life and Market Development Officer
AXA Hong Kong and Macau

“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^[2], 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 lifewithout fear of uncertainties.”

Offers accident premium waiver benefit^[3]& complimentary extended grace period benefit^[4]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^[3]. 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^[4], 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^[1] to relieve the financial burden

IncomeEnrich is Hong Kong's first QDAP with a dementia advance benefit^[1]. 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^[5] providing high flexibility
IncomeEnrich provides an annuity period of 10 or 20 years, starting at the age of 50^[5] 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^[6] 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^[6].

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^[6]
Offers 5- or 10-years premium payment term and 10- or 20-years annuity period options with financial flexibility
Offers accident premium waiver benefit^[3] – 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[1], paying a lump sum death benefit in advance to relieve financial pressure at difficult time

To know more about the ‘IncomeEnrich Deferred Annuity Plan’, please visit: www.axa.com.hk/en/income-enrich-deferred-annuity-plan.

The above information is for reference only. For details on product features, content, terms and exclusions, please refer to the relevant product brochure.

Remarks:
[1] 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 IncomeEnrich as if the annuitant died on the date of first diagnosis of severe dementias. Once this dementia advance benefit becomes payable, this policy shall be automatically terminated.

[2] According to AXA’s internal sales statistic, as of Feb 2020.

[3] Eligibility for the accident premium waiver benefit is subject to certain criteria and exceptions. The Company will waive all premiums under IncomeEnrich 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 IncomeEnrich on the annuitant. Once this accident premium waiver benefit is claimed under any one of the policies of IncomeEnrich issued by the Company on the annuitant, this benefit under all of such IncomeEnrich policies will automatically cease and no longer be available.

[4] Eligibility for the extended grace period benefit is subject to certain criteria and exceptions. The policy owner must provide the relevant evidence to the Company. The extended grace period benefit can be claimed once only under each policy.

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

[6] This maximum tax deduction limit is the aggregate limit for Mandatory Provident Fund Tax Deductible Voluntary Contribution and deferred annuity premiums. It is also based on the information on allowance published by the Inland Revenue Department and is subject to change from time to time. Only qualified annuity premiums paid in relation to the annuity payments can be tax deductible. Please note any premiums paid for any supplements attached to IncomeEnrich will not be qualified for tax deduction.