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FAQs about HKMC Annuity Plan

Annuity Classroom

2023-04-14

Many senior citizens who are interested in the HKMC Annuity Plan1 may have some questions about it. Hence, we have consolidated the following information for your easy reference.

1. How much Guaranteed Monthly Annuity Payments can I receive?

Use the HKMC Annuity Plan Calculator to find out how much annuity income you can receive!

Example: Guaranteed Monthly Annuity Payment of the HKMC Annuity Plan2

Based on a HK$1,000,000 Single Premium
Age at application3
Male
Female
Guaranteed Monthly Annuity Payment (HK$)
Annuity Rate (%)
Guaranteed Monthly Annuity Payment (HK$)
Annuity Rate (%)
60
5,100
6.1%
4,700
5.6%
65
5,800
6.9%
5,300
6.3%
70
6,560
7.8%
5,840
7.0%

2. What happens if I encounter unexpected medical expenses after my policy goes into effect?  

Some may worry that applying for the HKMC Annuity Plan could result in a loss of financial flexibility, particularly as the possibility of encountering unexpected medical expenses may increase with age. Therefore, the HKMC Annuity Plan offers special withdrawal arrangement for medical and dental expenses4 to give you the financial flexibility and peace of mind.

3. Many annuity products on the market promise "high return", aren't they better options?

While some annuity products claim to offer attractive returns, their annuity payments may be divided into "guaranteed" and "non-guaranteed" portions. "Non-guaranteed" payments can be affected by various factors, such as investment returns, profits, and claims statistics of insurance companies. This means that if the payment is "non-guaranteed", your annuity income may be higher or lower than your expectations. In addition, if the "non-guaranteed" payments fail to be paid, your overall retirement income could be significantly affected. Therefore, when applying for an annuity product, it's important to be aware of the amounts of the guaranteed and non-guaranteed portions, especially for annuity products that claim to offer "high returns".

The HKMC Annuity Plan is not designed to deliver high returns. Instead, it offers a lifelong monthly annuity income that remains unchanged for life2. Many senior citizens desire a stable retirement life, and having a guaranteed income helps them plan a monthly budget effectively. Additionally, many insurance products only offer annuity payments for a duration of 10 or 20 years. In contrast, the HKMC Annuity Plan offers lifelong annuity payments.  

Therefore, it's important to thoroughly understand your own needs when comparing different annuity products.

 

Team Up with HKMC Annuity for Your New Chapters

Longevity is indeed a blessing but without a comprehensive retirement financial plan, the fear of outliving your savings can loom large and prompt you to be cautious with your spending.

Are you looking for a worry-free retirement? A lifelong, stable monthly income is essential. The HKMC Annuity Plan can transform your savings into a lifelong income stream. Upon successful application, you will receive the monthly annuity payments starting from the following month. As long as your policy remains effective, the guaranteed monthly annuity payments will continue for life, and the payment amount will remain unchanged2. A steady income stream makes managing your retirement finances easier, allowing you to enjoy your new life chapter with peace of mind!

Book an appointment now to understand your retirement financial needs. 

  

1 The product subjects to terms and conditions and involves risks.

2 If partial surrender or special withdrawal has been made, the subsequent amounts of the guaranteed monthly annuity payment will be reduced.

3 Age last birthday of insured at application.

4 Please refer to the product brochure for details and applicable terms and conditions regarding special withdrawals for medical and dental expenses.

Disclaimer: The HKMC Annuity Plan is a life insurance product subject to terms and conditions and involves risks. It is for reference only and intended for use in Hong Kong only. It shall not be construed as an offer to sell, solicitation to purchase or provision of any products outside Hong Kong by the Annuity Limited.

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