FAQ - HKMC Annuity

Question 1: What is HKMC Annuity Plan?

HKMC Annuity Plan is an insurance product underwritten by HKMC Annuity Limited. After paying a single premium, the Policyowner will receive the guaranteed monthly annuity payments for life as long as his/her policy remains in force. The amount of the Guaranteed Monthly Annuity Payments will be determined at the outset and will remain unchanged throughout the whole life of the Policyowner.

Question 2: Who is eligible to apply for the HKMC Annuity Plan?

In general, a person who is holding a valid Hong Kong Permanent Identity Card and has reached 60 years old or above is eligible to apply for the HKMC Annuity Plan, but approval result of the application (including but not limited to rejection of the application) is subject to HKMC Annuity Limited's final decision.

Question 3: If I have other citizenship/right of abode or I am living abroad, can I apply for the HKMC Annuity Plan?

In general, a person who is holding a valid Hong Kong Permanent Identity Card and has reached 60 years old or above is eligible to apply for the HKMC Annuity Plan. For other individual special case regarding eligibility, please contact HKMC Annuity Limited Customer Service Hotline (852) 2512-5000 or email to Customer Relations Department at [email protected].

Question 4: What is the Premium limit of the HKMC Annuity Plan?

Currently, the minimum premium amount per application is HK$50,000 and the maximum premium amount per person is HK$5,000,000.

Question 5: Should I participate in the HKMC Annuity Plan?

Everyone has different financial needs and expectation on the quality of retirement. Whether you plan for a wealthy or simple retirement life, you need to identify what kind of financial products and retirement life you want, consider your life expectancy, your current financial situation, and the risks that you can afford. You are suggested to fully understand the function of the HKMC Annuity Plan and the relevant policy provision and coverage first; and think thoroughly on whether the HKMC Annuity Plan is suitable for your own needs. Please contact HKMC Annuity Limited Customer Service Hotline (852) 2512-5000 or visit our website (www.hkmca.hk/hkmcaphp/php/eng/appointment_form.html) to make a sales appointment or enquiry if you would like to know more about the HKMC Annuity Plan and whether it is suitable for your retirement needs.

In addition, 2 calculator tools are available at HKMC Annuity Limited website for your reference.

"Never dried-up Calculator"; it is designed to assist you to understand longevity risks and the possibility of running out of savings during your life time;

"Life Expectancy Calculator"; it is designed to provide an estimation of life expectancy based on the statistical data of age and gender.

Question 6: How to calculate the amount of Guaranteed Monthly Annuity Payments?

For the amount of Guaranteed Monthly Annuity Payments, please refer to the Guaranteed Monthly Annuity Payments Table in the Product Brochure or the HKMC Annuity Plan Calculator at HKMC Annuity Limited website (www.hkmca.hk/hkmcaphp/php/calculator_web.php) to obtain such estimation.

Question 7: What is the Guaranteed Period of Guaranteed Monthly Annuity Payments?

It means the period determined as at the Policy Issue Date and stated in the Policy Schedule during which the Guaranteed Monthly Annuity Payments will be paid subject to the terms and conditions of the Policy, which period shall commence on the Premium Start Date and continue until the total amount of the Guaranteed Monthly Annuity Payments paid reaches 105% of the Premium paid.

Question 8: Is the HKMC Annuity Plan qualified for tax deductions?

HKMC Annuity Plan is an immediate annuity product. It is not a qualified deferred annuity policy for tax deductions.

Question 9: How to apply for the HKMC Annuity Plan? Can I apply online?

All appointments for application of the Plan must be made through one of the following methods:

Online reservation

Please choose your preferred Customer Service Centre, date and time in our company webpage. We will confirm your appointment with you by phone or email within two weeks according to the latest appointment availability.

Phone reservation

Please call our Customer Service Hotline at 2512-5000 for the reservation of Customer Service Centre, date and time of the appointment.

Please visit your appointed Customer Service Centre on the scheduled date and time. Our designated staff will explain the HKMC Annuity Plan details, conduct financial needs analysis and arrange the application process (if applicable) for you.

Addresses of Customer Service Centre

Suites 3202-05, 32/F, Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong
19/F, Two Harbour Square, 180 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
22/F, 909 Cheung Sha Wan Road, Lai Chi Kok, Kowloon, Hong Kong

Question 10: Does the applicant need to bring along a witness to the sales meeting?

HKMC Annuity Limited recommends applicant to bring along a witness for the sales meeting. However, applicant must be accompanied by a witness during the sales meeting if he / she is:

(1) visually impaired; or

(2) serious hearing impaired; or

(3) unable to read and understand both Chinese and English.

Question 11: What kind of documents and information are required during the application meeting?

Please bring along the following documents and information:

Hong Kong Permanent Identity Card.
The proof of personal bank account for receiving guaranteed monthly annuity payment e.g. a copy of the bank passbook or bank statements issued in the last 3 months or other supporting documents containing the English name of the bank account holder and the bank account number.
Full name and Hong Kong Permanent Identity Card Number of the designated Beneficiary (if applicable).
If you choose to settle premium by cheque, please bring along your personal cheque book (only Hong Kong Dollar cheque issued by local bank is acceptable).
If you choose to settle premium by Bank Transfer or Cashier’s Order, our designated staff will provide the required information to you at the time of application.

Attention: Settlement of premium by cash or post-dated cheque will not be accepted.

Question 12: Do I have to pay premium regularly (monthly/yearly) for HKMC Annuity Plan?

HKMC Annuity Plan's premium term is single premium which means the premium is paid in full during application. In other words, you do not have to pay premium regularly for HKMC Annuity Plan.

Question 13: How to settle the premium?

Please settle the premium in full within 10 calendar days from the application sign date. Payment options are as follows:

Personal Cheque (only Hong Kong Dollar cheque issued by local bank is acceptable)
- In case the bank account holder’s name and/or the account number is/are not pre-printed on the cheque, please submit a copy of the bank statement indicating the bank account holder’s name and the relevant account number with statement date within the last 3 months from the sign date of the cheque.
Bank Transfer (only bank transfer from a Hong Kong Dollar bank account is acceptable)
- You could settle premium via bank transfer at any of the 4 banks : Bank of China (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Hang Seng Bank Limited and Standard Chartered Bank (HK) Limited. Please submit a copy of the bank deposit slip and ensure application number, name of the Proposed Policyowner, payment amount and name of the account holder (if the account holder is other than the Proposed Policyowner) are provided on the bank deposit slip.
Cashier's Order
- Please purchase the Cashier's Order after the required premium amount is confirmed with our designated staff in the application meeting.
- Please submit a copy of the official receipt of the issuing bank indicating the name of the Payor and write the following information at the back:
  - Application Number
  - Name of the Proposed Policyowner
  - Contact number of the Proposed Policyowner

Attention:

Settlement of premium by cash or post-dated cheque will not be accepted.
If the premium payment is made after 10 calendars days from the application signing date, the premium start date will be determined according to the administrative rules of HKMC Annuity Limited.

Question 14: Can the premium be paid by the proposed Policyowner's family member?

The premium can be paid by the proposed Policyowner's direct relatives (i.e. parents, spouse, children (18 years old or above) or siblings) along with a “Third Party Payment Declaration Form” and a copy of the identification document of the third party payor.

Question 15: After the application, when will I receive the Guaranteed Monthly Annuity Payments?

The Guaranteed Monthly Annuity Payments will be paid after the policy is issued and commencing from the month after the premium start date of the policy.

Question 16: Which types of bank accounts can the policyowner designate to receive the Guaranteed Monthly Annuity Payment?

The policyowner may designate the following bank accounts to receive the Guaranteed Monthly Annuity Payments:

Applicable to Local Hong Kong Bank Account

- Only personal Hong Kong Dollar (HKD) accounts opened with a Hong Kong bank are accepted.

Applicable to Chinese Mainland Bank Account

- At this stage, it must be a Type I personal Renminbi (RMB) account, opened in person by the policyowner at a designated bank (i.e. Bank of China) in the Chinese Mainland.

- The receiving bank account must be held in the policyowner's sole name, joint accounts are not accepted.

- The receiving bank account records must include the policyowner's English name.

Regardless of whether the policyowner chooses to receive the guaranteed monthly annuity payments through a local Hong Kong bank account or an eligible Chinese Mainland RMB bank account, the annuity payment dates remain the same as specified in the policy contract. If the payment date falls on a Saturday, Sunday or Hong Kong public holiday, the guaranteed monthly annuity payments will be paid one business day in advance.

Question 17: Does the Cross-Boundary Annuity Disbursement Service apply to all Chinese Mainland banks?

At this stage, it must be a Type I personal Renminbi account, opened in person by the policyowner at a designated bank (i.e. Bank of China) in the Chinese Mainland.

Question 18:If the policyowner chooses to receive the Guaranteed Monthly Annuity Payments via a bank account in the Chinese Mainland, will the payment be made in Hong Kong Dollars or in Renminbi?

The HKMC Annuity Limited's servicing bank (i.e. Bank of China (Hong Kong)) will convert the Hong Kong dollar-denominated guaranteed monthly annuity payments into RMB, and remit funds via “Payment Connect” to policyowners' eligible RMB bank accounts opened in the Chinese Mainland.

The actual RMB amount^* deposited into policyowners' eligible RMB bank accounts opened in the Chinese Mainland depends on the prevailing exchange rate applied by the servicing bank at the time of transaction.

^*The actual received amount would be subject to exchange rate fluctuation.

Question 19: Are there any fees associated with the Cross-Boundary Annuity Disbursement Service?

HKMC Annuity Limited does not levy any charges for this service.

Question 20: What channels are available for policyowners to enquire about the Cross-Boundary Annuity Disbursement Service?

For enquiries about opening a Bank of China account in the Chinese Mainland, or remittance-related matters, please call Bank of China’s Mainland customer service hotline at (86) 95566. If you are in Hong Kong, you may call Bank of China (Hong Kong) at (852) 3988 2388 and request transfer to Bank of China’s Mainland customer service for assistance.

For enquiries about HKMC Annuity Limited’s products or applications for the Cross-boundary Annuity Disbursement Service, please call HKMC Annuity Limited customer service hotline at (852) 2512 5000.

Question 21: Can the Policyowner change the bank account for receiving the Guaranteed Monthly Annuity Payments?

Yes. The Policyowner can obtain the "Request Form for Change of Bank Account for Receiving Guaranteed Monthly Annuity Payments" from the HKMC Annuity Limited. Please complete and sign the form, then submit to our company together with the relevant copy of bank account passbook or the bank statement indicating the bank account holder’s name and the relevant account number with statement date within the last 3 months for follow up.

Question 22: Can the Policyowner surrender the policy?

HKMC Annuity Plan is a lifelong insurance product. The Policyowner may surrender the policy as long as your policy remains in force and within the Guaranteed Period. The surrender value is equivalent to the guaranteed cash value of your policy as at the time of the surrender. There is no surrender value after the Guaranteed Period.

Question 23: How to determine the available value of Special Withdrawal for Medical and Dental Expenses?

The Special Withdrawal for Medical and Dental Expenses is a special mean for the Insured to meet unexpected medical and dental expenses^ during the Guaranteed Period. The Special Withdrawal Value available for withdrawal will be determined as at the date of acceptance of the special withdrawal application. The date of acceptance will be the date on which the Insured’s application is accepted by HKMC Annuity Limited. Special withdrawal is only allowed within the Guaranteed Period.

Special withdrawal can only be made once under a single application in the Insured’s lifetime for all policies issued by HKMC Annuity Limited in respect of the same Insured up to an amount equivalent to 100% of the remaining balance of the premium paid (i.e. the amount of the premium paid deducting the total annuity payments received by the Insured). The maximum lifetime withdrawal limit for each insured is HK$1,000,000.

If a single application has been made and accepted by HKMC Annuity Limited for special withdrawal in respect of the same Insured, no further application for special withdrawal will be accepted.

^ Medical and Dental Expenses include the actual or estimated amount of Medical and Dental Expenses incurred or to be incurred from Medical and Dental treatment or examination carried out or to be carried out in Hong Kong.

Question 24: What kind of Medical and Dental Expenses shall be included in the Special Withdrawal for Medical and Dental Expenses?

The Special Withdrawal for Medical and Dental Expenses shall only be payable for the actual or estimated amount of Medical and Dental Expenses incurred or to be incurred directly from any of the following:

Medical and Dental Treatment provided and/or performed in a Medical and Dental Institution that is Medically and Dentally Necessary and recommended by a Registered Medical and Dental Practitioner; and
Medical and Dental Examination that is considered Medically and Dentally Necessary by a Registered Medical and Dental Practitioner to establish a diagnosis of a Sickness.

Medical and Dental Expenses shall include: Hospital Room and Board Charges, Physician Fees, Specialist Fees, Surgeon Fees, Anaesthetist Fees and Operating Theatre Fees, Intensive Care Charges, Medical and Dental Examination Charges, Miscellaneous and Medical and Dental Services.

Question 25: Is annual body check included in the Special Withdrawal for Medical and Dental Expenses?

Medical and Dental Examinations, such as annual body check, routine oral examination, scale and polish and prophylaxis which are not considered Medically and Dentally Necessary by a Registered Medical and Dental Practitioner to establish a diagnosis of a Sickness are excluded.

Question 26: After the Special Withdrawal for Medical and Dental Expenses, will the Guaranteed Period be affected?

After the special withdrawal, the Guaranteed Period will not be affected. The amount of the Guaranteed Monthly Annuity Payments, the Guaranteed Cash Value, the Death Benefit (if applicable) and the total amount of benefits payable of the policy will be reduced accordingly.

Question 27: Is there any product enhancement for “Special Withdrawal for Medical and Dental Expenses”?

Special Withdrawal for Medical and Dental Expenses is one of the HKMC Annuity Plan features. Policyowner may apply for the special withdrawal with relevant medical proof. This arrangement provides flexibility to customer to meet related expenses in a more adaptable manner.

With effect from 29 April, 2024, the maximum withdrawal limit has been exempted from 50% of the premium paid and increased to 100% of the premium paid, less the cumulative guaranteed monthly annuity payments paid. Other terms and conditions of this arrangement will remain unchanged and such enhancement applies to all existing inforce policies and newly enrolled policies.

Question 28: How should the designated beneficiary(ies) apply for death claim if the Insured dies due to illness/natural death?

The designated beneficiary(ies) may call HKMC Annuity Limited (HKMCA) Customer Service Hotline (852) 2512-5000 for enquiry, obtaining the Death Claim Form and making appointment for death claim application at our Customer Service Centre in Kowloon (Address: 19/F, Two Harbour Square, 180 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong or 22/F, 909 Cheung Sha Wan Road, Lai Chi Kok, Kowloon, Hong Kong) ; or Customer Service Centre in Hong Kong (Address: Suites 3202-5, 32/F, Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong). For designated beneficiary(ies) at overseas, please contact us via e-mail ([email protected]).

If the Insured dies due to illness / natural death, the following documents are required:

The designated beneficiary(ies) is required to complete 1) the Death Claim Form* and 2) the Individual Self-Certification Form to be completed by Beneficiary*, and bring along 3) the Original Policy Contract or the Declaration of Policy Lost stated on the Death Claim Form; 4) the Original or Certified True Copy^ of Death Certificate / Notarial Certificate / Court Order for Presumptive Death / Proof of Death issued by authorized authorities; 5) the Original or Certified True Copy^ of the Deceased's Identification Document; and 6) the Original or Certified True Copy^ of the designated beneficiary(ies)'s Identification Document to the HKMCA Customer Service Centre in Hong Kong or Kowloon for the death claim application.

* If there is more than one designated beneficiary, each designated beneficiary is required to fill in the Death Claim Form and the Individual Self-Certification Form separately.

^ Must be certified by the HKMCA (except the designated beneficiary(ies) is at overseas, he/she may contact a professional third party in the relevant jurisdiction). Should there is any query, the designated beneficiary(ies) can call HKMCA Customer Service Hotline or e-mail us for enquiry.

Question 29: How should be the designated beneficiary(ies) apply for death claim if the Insured dies due to accidental death or unnatural cause of death?

If the Insured dies due to accidental death or unnatural cause of death, the following documents are required:

The designated beneficiary(ies) is required to complete 1) the Death Claim Form* and 2) the Individual Self-Certification Form to be completed by Beneficiary*, and bring along 3) the Original Policy Contract or the Declaration of Policy Lost stated on the Death Claim Form; 4) the Original or Certified True Copy^ of Death Certificate / Notarial Certificate / Court Order for Presumptive Death / Proof of Death issued by authorized authorities; 5) the Original or Certified True Copy^ of the Deceased's Identification Document; and 6) the Original or Certified True Copy^ of the designated beneficiary(ies)'s Identification Document; 7) the Police and / or Traffic Accident Report; 8) the Post-mortem / Coroner's Report (upon request); 9) the Certificate of Cremation / Funeral; and 10) the Newspaper Clippings, to the HKMC Annuity Limited (HKMCA) Customer Service Centre in Hong Kong or Kowloon for the death claim application.

* If there is more than one designated beneficiary, each designated beneficiary is required to fill in the Death Claim Form and the Individual Self-Certification Form separately.

Question 30: If there is no designated beneficiary(ies) stated in the Policy, how to apply for the death claim?

If there is no designated beneficiary(ies) stated in the Policy, a person who is lawfully and rightfully entitled to the estate of the Policyowner is required to present: 1) the Letter of Administration or Grant of Probate; and 2) the Copy of Administrator's or Executor's Identification Document as an identity proof, fill in the death claim form and prepare the respective documents stated in Question 28 or 29 for applying a death claim. Estate of the Policyowner can call HKMC Annuity Limited Customer Service Hotline or e-mail to us for enquiry.

Question 31: When will HKMC Annuity Limited stop paying the Guaranteed Monthly Annuity Payments into the Policyowner's bank account after the death of the Insured?

Upon the receipt of the Death Claim Form and relevant proof of death documents as stated in Question 28 or 29 from the designated beneficiary(ies), (such as Original or Certified True Copy^ of Death Certificate / Notarial Certificate / Court Order for Presumptive Death / Proof of Death issued by authorized authorities), HKMC Annuity Limited (HKMCA) will arrange to stop paying the Guaranteed Monthly Annuity Payments into the Policyowner's bank account.

Question 32: How to determine the Death Benefit?

Death Benefit will be determined as at the date when the death claim application is received by HKMC Annuity Limited. As a result, if the submission of the death claim application was delayed, it may reduce the Death Benefit amount payable to the designated beneficiary(ies). Designated beneficiary(ies) may not receive any death benefit if the death claim application is received after the Guaranteed Period.

Question 33: If the beneficiary(ies) choose(s) to receive the Lump Sum Death Benefit Payment, is there any financial loss?

After the implementation of enhancement measures on 12 December 2018, there will be no financial loss when designated beneficiary(ies) choose the option of receiving a Lump Sum Death Benefit Payment for all existing and new client's policy.

Lump Sum Death Benefit Payment is receiving the benefit equivalent to the higher of:

the Guaranteed Cash Value of your policy as at the date on which the death claim application is received by HKMC Annuity Limited (HKMCA); and
100% of the Premium paid less the cumulative Guaranteed Monthly Annuity Payments paid as at the date on which the death claim application is received by HKMCA.

There is no Death Benefit after the Guaranteed Period.

Question 34: How will the Death Benefit be paid if the designated beneficiary(ies) opts for Lump Sum Death Benefit Payment?

A Lump Sum Death Benefit amount will be paid to the designated beneficiary(ies) by cheque. The designated beneficiary(ies) need to collect the cheque in person at HKMC Annuity Limited Customer Service Centre in Kwun Tong (Address: 19/F, Two Harbour Square, 180 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong).

Question 35: How will the Death Benefit be paid if the designated beneficiary(ies) opts for Monthly Death Benefit Payment?

Monthly Death Benefit Payment will be paid to the designated beneficiary(ies)'s designated Hong Kong Dollar personal bank account maintained with a bank in Hong Kong. Thus, the designated beneficiary(ies) is required to provide bank account proof when submitting the death claim application.

Question 36: If the designated beneficiary(ies) chooses to receive the Monthly Death Benefit Payments until the end of the Guaranteed Period, what will happen to the remaining unpaid Death Benefit Payments if the designated beneficiary(ies) dies before the end of Guaranteed Period?

The remaining unpaid Death Benefit Payments will be paid to the person who is lawfully and rightfully entitled to the estate of the designated beneficiary(ies) on a monthly basis until the end of the Guaranteed Period.

Question 37: How long does it take to complete the death claim application?

After HKMC Annuity Limited receives and confirms the acceptance of the death claim application form and other relevant documents from the designated beneficiary(ies), the Death Benefit will be paid in approximately 14 working days by cheque (applicable to Lump Sum Death Benefit Payment); or by bank transfer (at the next payment date) (applicable to Monthly Death Benefit Payment).