1. Nature of the Plan
The Plan is a whole life guaranteed annuity insurance product. It is a long-term insurance plan and is underwritten by HKMC Annuity Limited. The Plan is NEITHER a bank deposit NOR a bank savings plan. The objectives of the Plan are to provide regular and guaranteed income in the future and to address your longevity risk. The actual return of the policy depends on your lifespan. The longer you live, the higher cumulative guaranteed monthly annuity payments you will receive. Please refer to your illustration document for details.
2. Premium Term and Benefit Term of the Plan
This is a single premium product and the benefit term (protection period) is whole of your life. We will pay the guaranteed monthly annuity payments as long as you are alive and the policy remains in force. Proof of your survival satisfactory to HKMC Annuity Limited will be required for the continuation of guaranteed monthly annuity payments.
3. Cooling-off Period
If you are not satisfied with the policy or its terms and conditions, you have the right to cancel the policy within the cooling-off period and obtain a refund of any premiums paid by giving written notice to us, subject to a deduction of the guaranteed monthly annuity payment that we have already made (if any). Such notice must be signed by you and submitted to the Customer Service Centre of HKMC Annuity Limited at 35/F, Cosco Tower (High Block), Grand Millennium Plaza, 183 Queen’s Road Central, Hong Kong within 21 days after the delivery of the policy or issue of the notice to you or your representative (informing you that the policy is available and the expiry date of the cooling-off period), whichever is earlier.
4. Liquidity and Partial Surrender Risk, Surrender within Guaranteed Period, and Death or Surrender after the Guaranteed Period
This is a lifetime insurance product. You should therefore ensure that (1) purchase of HKMC Annuity Plan will improve or at least not adversely affect your ability to pay your regular expenses, including living expenses, housing expenses, medical expenses (including long term medical care and drugs), etc., and (2) you have reserved sufficient funds for emergency purposes to meet any financial contingencies (such as emergency medical expenses, transitional living expenses pending government’s approval of living allowance, and other sudden expenses) that may occur after purchase of the Plan.
You are advised not to surrender the full value of the policy which will result in early termination of the policy. Should you surrender the policy within the Guaranteed Period (i.e. the period commencing from the premium start date of the policy during which guaranteed monthly annuity payments will be paid subject to the policy terms until the cumulative guaranteed monthly annuity payments paid reaches 105% of the premium paid), the sum of the amount of the cumulative guaranteed monthly annuity payment(s) already paid to you and the surrender value to be paid to you may be significantly less than the total premium paid by you. After the Guaranteed Period, in the unfortunate event that the insured passes away or if the policy is surrendered, the policy has no guaranteed cash value and no death benefit or surrender value is payable and the policy will be terminated. Please refer to your illustration document for more information.
If you surrender the policy (whether during or after the Guaranteed Period), the policy will be terminated. Subsequent to that, NO lifetime guaranteed monthly annuity payments will be payable to you under the Plan.
While the policy is in force and during the Guaranteed Period, you may withdraw money from the policy by way of partial surrender of the guaranteed cash value of the policy (subject to the minimum surrender amount and the minimum guaranteed cash value of the policy after partial surrender. You can call our Customer Service Hotline for details of the minimum surrender amount and the minimum guaranteed cash value of the policy). The guaranteed cash value of the policy after the partial surrender shall not be less than the minimum amount which we set from time to time.
You are also advised not to partially surrender the policy which will result in reduction of the subsequent amounts of the guaranteed monthly annuity payment, guaranteed cash value, death benefit (if applicable), special withdrawal value and the total amount of benefits paid and payable of the policy. Please refer to the policy provisions for details.
5. Risk of Making Special Withdrawal for Medical and Dental Expenses
Subject to the terms and conditions of the policy, if there are medical and dental expenses incurred or to be incurred in respect of the insured, you can only make one single special withdrawal application for all policies issued by HKMC Annuity Limited in respect of the insured during his/her lifetime and the subsequent guaranteed monthly annuity payments, guaranteed cash values, death benefit (if applicable) and the total amount of benefits paid and payable of the policy will be reduced after the special withdrawal is made. Making special withdrawal will also cause the policy to terminate if the amount of the guaranteed monthly annuity payments payable under the policy becomes zero after the special withdrawal.
In respect of any estimated medical and dental expenses to be incurred, if medical and dental treatment or medical and dental examination is scheduled to be carried out on a date but is not carried out on or within a reasonable period of time from the scheduled date, any payment made by HKMC Annuity Limited for the estimated amount of medical and dental expenses may, at HKMC Annuity Limited’s discretion, be deemed as payment made for partial surrender. In such case, if partial surrender is less favourable than special withdrawal, you may be placed in a less favourable position.
6. Credit Risk
HKMC Annuity Limited underwrites the Plan and you are subject to our credit risk. If HKMC Annuity Limited is unable to satisfy the financial obligations of the policy, you may lose your premium paid and benefits under the Plan.
7. Inflation Risk
Your current planned benefit may not be sufficient to meet your future needs since the future cost of living may become higher due to inflation. Please note that the amount of the guaranteed monthly annuity payment is determined at the outset and will remain unchanged throughout the whole of your life, and if the actual rate of inflation is higher than expected, you may receive less in real terms.
The policy will be terminated upon the earlier of the following dates:
a. The date of surrender, if you submit a written request to fully surrender the policy before the end of the Guaranteed Period, and such written request is approved by HKMC Annuity Limited; or
b. The date on which the insured dies; or
c. The date on which the amount of the guaranteed monthly annuity payments payable under the policy becomes zero upon special withdrawal for medical and dental expenses under the policy.
The above content should be read together with your Illustration Document and other marketing materials, which include additional information and important considerations about the Plan.
Under the webpage of “HKMC Annuity Plan”, ‘you’ and ‘your’ refer to the policyowner and the policyowner shall also be the insured. ‘We’, ‘us’ and ‘our’ refer to HKMC Annuity Limited.
HKMC Annuity Plan is underwritten by HKMC Annuity Limited. Apart from the sales representatives of HKMC Annuity Limited, HKMC Annuity Limited may appoint Agent Bank(s) as the authorised intermediaries of HKMC Annuity Limited from time to time for referring interested customer to HKMC Annuity Limited to conduct a Financial Needs Analysis to ascertain the customer's suitability in subscribing to the Plan. You can call our Customer Service Hotline for details of our authorised intermediaries.
The Plan is a product of HKMC Annuity Limited but not the Agent Banks’. In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between you and an Agent Bank out of the selling process or processing of the related transaction, the Agent Bank is required to enter into a Financial Dispute Resolution Scheme process with you; however any dispute over the contractual terms of the Plan should be resolved between you and HKMC Annuity Limited directly.
HKMC Annuity Limited is a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited which, in turn, is wholly-owned by the Hong Kong Special Administrative Region Government through the Exchange Fund.
HKMC Annuity Limited is authorised and regulated by the Insurance Authority to carry on long term insurance business in or from the Hong Kong Special Administrative Region of the People’s Republic of China.
HKMC Annuity Limited reserves the right to decide at its sole discretion to accept or decline application for the Plan. HKMC Annuity Limited will refund any premiums paid (without any interest) for unsuccessful applications.
You should not apply for the Plan unless you fully understand the product features and risks. For more information or if you have any doubts, please call our Customer Service Hotline.