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: 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 3: 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 4: 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 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: 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

Note : Online application for HKMC Annuity Plan is not applicable.

Question 9: 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 10: 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 11: 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)
- 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 HKMCA.

Question 12: 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 13: 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 14: 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 15: 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 16: 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 bank account passbook or monthly bank statement for follow up.

Question 17: 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 18: 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 19: 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 20: 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 21: 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 Application Servicing and Customer Service Centre in Kowloon (Address: 19/F, Two Harbour Square, 180 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong) ; or Application Servicing and 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 Declaration of Policy Lost; 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) 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 Application Servicing and 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 our Customer Service Hotline or e-mail us for enquiry.

Question 22: How should the designated beneficiary(ies) apply for death claim if the Insured dies due to accidental death or unnatural cause of death?

The designated beneficiary(ies) may contact HKMC Annuity Limited (HKMCA) Customer Service Department as stated in Question 18.

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 Contractor Declaration of Policy Lost; 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) 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 Application Servicing and 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 23: 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 18 or Question 19 for applying a death claim. Estate of the Policyowner can call our Customer Service Hotline or e-mail to us for enquiry.

Question 24: 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 18 or Question 19 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 25: 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 26: 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 Guaranteed Monthly Annuity Payments if the designated beneficiary(ies) dies before the end of the Guaranteed Period?

The remaining unpaid Guaranteed Monthly Annuity 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 27: 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; 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 HKMC Annuity Limited.

There is no Death Benefit after the Guaranteed Period.

Question 28: 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 Kowloon Application Servicing and Customer Service Centre (Address: 19/F, Two Harbour Square, 180 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong)

Question 29: 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 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 30: 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).

Question 31: Will there be any impact on the eligibility for applying Old Age Living Allowance at the Social Welfare Department when receiving Guaranteed Monthly Annuity Payments from HKMC Annuity Plan?

The Premium paid and Guaranteed Cash Value of the HKMC Annuity Plan is not considered as assets for Old Age Living Allowance but the Guaranteed Monthly Annuity Payments received will be counted as monthly income and must be declared. In the case of partial surrender or full surrender, the amount received will be regarded as assets and must be declared. Please contact Social Welfare Department enquiry hotline when necessary.

Question 32: 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 33: Is there any new promotional offer currently in place by the HKMCA?

Upon successful application of the HKMC Annuity Plan during the promotional period, you will have the opportunities to enjoy the following two offers¹ .

Promotional Period : 29 April, 2024 to 31 December, 2024 (both dates inclusive)

Offer 1 : Lifelong Monthly Income Booster Promotional Offer²

For the first HK$300,000 premium of new applications per insured, insureds can enjoy a 25% increase in monthly annuity payouts for life.

Offer 2 : Premium Discount Promotional Offer²

If you are an existing / a former member of registered MPF scheme or ORSO scheme member or AMIGOS By HKMC member, each eligible new policy will be entitled to a 2% premium discount.

For the details of the above offers, please refer to : https://www.hkmca.hk/eng/information_centre/articles/13_Tips_for_Lifelong_Dual_Booster_offer.html

Note:
¹ Each policy cannot be entitled to more than one Offer at the same time.
² Subject to the terms and conditions of the Offer.

Question 34: Under Lifelong Monthly Income Booster Promotional Offer, how would the Extra Monthly Payment to be paid?

The Extra Monthly Payment together with the Guaranteed Monthly Annuity Payment will be credited to policyowner's designated bank account in one go.

Question 35: 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.