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EarlyIncome Annuity Plan1

Extra cash for your retirement

If you’ve turned 352 and are thinking about retirement, make sure you receive a regular income later by making a smart move now.

Our EarlyIncome Annuity Plan is a life insurance plan with a savings element which enables you to pay in to your early retirement plan for a short period while your earning power is at its peak. You can receive a monthly annuity payment as early as 1 year after your policy begins for the following 20 years or 3 years after your policy begins to age 992. Enjoy the peace of mind that comes with knowing your retirement plan allows you to do all the things you wanted to do in retirement.

This is an annuity insurance plan underwritten by HSBC Life (International) Limited.

Key features

  • You can select the accumulation period of one year, three years or five years to accumulate your wealth
  • Receive your first annuity payment after just 1 year for the next 20 years, or roll them over to boost the value of the policy6
  • Choose to fund your plan monthly, annually , or with aggregate premium8
  • Stay covered for life protection and with extra protection, at extra premium, against accidental death, terminal illness and unemployment3
  • Unless you have high levels of cover with us, approval of your application is generally guaranteed with no health questions asked4
EarlyIncome Annuity Plan

Product Discount Offer

Enjoy up to 3% discount off first year premium upon successful application for EarlyIncome Annuity Plan.

Promotional terms and conditions apply. Please visit branch for details.

Need to make a claim?

Fax us with the completed claim form.

Summary of cover

What’s included?

 

Your savings

Your savings is made up of:

  • Guaranteed cash value in your plan that builds up gradually throughout the accumulation period
  • Non-guaranteed annual dividends and interest rate (earned on any accumulated dividends and interest and any accumulated Monthly Annuity Payment6). The dividend scale for distributing any dividends is determined by the Company and may vary from time to time at the Company’s absolute discretion. If you withdraw any accumulated dividends and interest under your policy or if any adjustment affecting the dividends occurs during the policy term, the amount of future Monthly Non-guaranteed Annuity Payment may be adjusted accordingly

See more about our policy dividends. 

 

Accumulation period and annuity payment which suit your needs

You can choose how your annuity will be paid to you

  • Begin receiving your Monthly Annuity Payment6 for 20 years from month 13, 37 or 61 or to age 992 from month 37 or 61 of taking out the plan, depending on the accumulation period you choose
  • Leave your annuity income in the plan to rollover and grow with interest, if any

 

Life cover

Enjoy life cover with your total premiums paid9 fully protected. If you were to die, your beneficiary(ies) will be entitled to the death benefit.

 

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

 

You can choose in writing on how the death benefit will be paid7. The beneficiary(ies) will receive

  • the death benefit in one lump sum payment; or
  • any Monthly Annuity Payment6 accumulated before death of the life insured in one lump sum, plus any unpaid Monthly Annuity Payment6 until the end of the annuity period (this option is only available if it is elected during life insured’s lifetime and the death of the life insured occurs in or after the 4th year after the policy begins)

 

Flexible premium payment

You can choose the premium payment option that works for you. Pay monthly or annual premiums for 3 years or 5 years, or choose the aggregate premium8 option. The total amount you need to pay is fixed at the beginning of your policy so there are no surprises.

 

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

Eligibility

Am I eligible?

EarlyIncome Annuity Plan is available to the Proposed Insured who should be aged 352 to 752 (only applicable to 3-year payment policies) or 352 to 702 (only applicable to 5-year payment policies). To age 992 annuity period option is only available to the Proposed Insured who should be aged 552 to 702. The plan is subject to the relevant requirements on nationality and/or addresses of the policyholder and/or life insured as determined by the Company from time to time.

 

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

Additional benefits

More help when you need it

When life surprises you, additional benefits included in this policy can offer you more support at no extra premiums.

 

Additional accidental death cover15

This extra benefit cover you if you die as a result of an accident before the end of the policy term or the age of 8014(whichever is earlier). In this case, we’ll pay an additional sum equal to 30% of the Total Premiums Paid9 on top of the death benefit payable to your beneficiary(ies).

 

Terminal illness benefit15

If you are diagnosed with a terminal illness before the end of the policy term or the age of 8014(whichever is earlier) and are given a death prognosis of not more than one year, we will pay your plan’s life cover benefit in advance.

 

Unemployment benefit13

If you are unemployed for more than 30 consecutive days before the age of 652, you can defer payment of your premiums for up to 365 days. You will still enjoy the full protection of your policy throughout. Unemployment benefit is not applicable to policy with aggregate premium8 option.

 

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

Product brochure

All the information you need in one place

EarlyIncome Annuity Plan Product Brochure

See more details of your EarlyIncome Annuity Plan.

Policy dividend

Policy dividend for Participating Products

More about participating policy

 

We issue participating life insurance policies providing both guaranteed and non-guaranteed benefits. The guaranteed benefits may include the Death Benefit, Guaranteed Cash Value and other benefits that vary depending on your chosen plan. The non-guaranteed benefits comprise the policy dividends which allow policyholders to share in the financial performance of the life insurance operation. 

For EarlyIncome Annuity Plan, the policy dividends, if any, is in the form of:

Annual dividends, which are declared by us on an annual basis. Once declared, the amount of annual dividends for the year is guaranteed. 

 

Please refer to the “Product Summary” section of product brochure for more details.

 

What factors will affect your dividends?

The annual dividends, if any, is not guaranteed. The size of the dividends and whether it is payable depend on factors including but not limited to:

  • The investment performance of the assets supporting the policies;
  • Claims, lapses and expenses experiences; and
  • The long-term expected future performance of investment and other experiences mentioned above.

If the performance over the long term is better than expected, the dividends paid would increase. If the performance is below expectations, the dividends paid would decrease. 

 

Please refer to the “Key risks – Non-guaranteed benefit” section of product brochure for more details. 

 

What are the key benefits of participating policies?

The key feature of participating policies over other forms of insurance policies is that in addition to the guaranteed benefits, you will also benefit from an additional annual dividend payment if the investment performance is better than that required to support the guaranteed benefits. The better the performance, the greater the dividend payments, and, conversely, the worse the performance, the lower the dividend payments.

 

Dividend philosophy

 

Establishing a risk-sharing mechanism

We have a clear interest in the performance of your participating policy as our participating business operates on the principle of sharing risks between you and ourselves to achieve a reasonable balance. We regularly review the level of dividends payable to you. Both the past actual performance and management's expectation of the long-term future performance will be assessed against the assumed level. If variances arise, consideration will be taken for sharing these with you through dividend adjustments.

 

Fairness across policyholder groups

To ensure fairness between policyholders of participating products, we will carefully consider the experience (including investment performance) of various policy groups such as products, product generations and currencies and issue years so that each policy group will receive a fair return based mainly on its own performance. To balance the interest between you and us, a dedicated committee formed from a group of professionals will provide independent advice on managing the participating policies and determining the dividends.

 

Stable long-term returns

We try to maintain a stable dividend through periods of market fluctuations. When considering adjusting the dividend scales, we strive to maintain a more stable payout to you by smoothing, which means the dividend level will only be changed if the actual performance is significantly different from the assumed level over a period of time, or if management's long-term future performance expectations change substantially.

Rather than changing dividends in response to short-term fluctuations, smoothing allows us to keep dividends unchanged or make less severe adjustments than would otherwise have been the case. As such, it is important not to necessarily view any short-term investment (over and under) performance as an indication of an upcoming change in dividends. This will be considered together with longer-term historical investment performance and future expectations, as well as the other non-investment variances.

 

Investment policy and strategy

We follow an asset strategy that:

i) Helps to ensure that we can meet the guaranteed benefits that we have committed to you;

ii) delivers competitive long-term returns to you through non-guaranteed dividends and bonuses; and

iii) Maintains an acceptable level of risk

The assets supporting the participating policies consist of fixed income and growth assets. The fixed income assets predominately include fixed income assets issued by corporate entities with good credit ratings (average A-rated or above) and long-term prospects. Growth assets, including equity-type investments and alternative investments such as property, private equity or hedge funds, as well as structured products including derivatives, are utilised to deliver returns that are more reflective of economic performance over the long term.

Our investment portfolios are well diversified across various types of assets, and are invested in varied geographical markets (mainly Asia, the United States and Europe), currencies (mainly USD) and industries. The assets are carefully managed and monitored according to our own acceptable level of risk.

Target asset allocations
 

Asset Type

Allocation percentage

Fixed Income Assets (government bonds, corporate bonds and alternative credit such as infrastructure debt)

80%-100%

Growth Assets

0%-20%

- Equities

0%-15%

- Alternative Investments

0%-15%

Target asset allocations
 

Asset Type

Fixed Income Assets (government bonds, corporate bonds and alternative credit such as infrastructure debt)

Allocation percentage

80%-100%

Asset Type

Growth Assets

Allocation percentage

0%-20%

Asset Type

- Equities

Allocation percentage

0%-15%

Asset Type

- Alternative Investments

Allocation percentage

0%-15%

Note: there could be slight deviation from the above range due to market fluctuation. 

We consider other factors when deciding the actual asset allocations, including, but not limited to:

  • Past investment performance of the assets supporting the policies;
  • Current and expected future market conditions;
  • Guaranteed and non-guaranteed benefits of the policies;
  • The acceptable risk level of the policies; and
  • Expected economic growth after adjustment for inflation over a period of time. 

Subject to our investment policy, actual asset allocation could deviate from the above target asset allocation from time to time.

The policy of determining the dividends (if any) and accumulation of interest rates may be reviewed and adjusted by us from time to time. For more updated information, please visit our website [https://www.hsbc.com.hk/insurance/info/].

You may also visit the above website to refer our dividend history. The past or current performance of our business may not be a guide for future results.

Manage your policy

Manage your policy online

At HSBC, we understand life never stands still. Which is why you can make changes to your policy online anytime.

 

It's easy to:

- check or review your policy details

- change premium payment instructions, including your premium payment account, payment method or payment frequency

Make a claim

Sometimes life doesn’t go according to plan and you’ll want to make an insurance claim as soon as possible.

 

Simply call our Tele-Consultants at (852) 31280122 who will assist you in preparing your relevant claim request(s). 

Have you considered

 

If you’ve turned 35 and are thinking about retirement, make sure you receive a regular income later by making a smart move now.

 

Note: EarlyIncome Annuity Plan is not equivalent or similar to any kind of deposit.

 

Business to fund? School fees to pay? Perhaps you are simply looking forward to a comfortable retirement.

 

Note: Income Goal Insurance Plan is not equivalent or similar to any kind of deposit.

1 Income Goal Insurance Plan is not equivalent or similar to any kind of deposit.

2 We consider your age to be how old you are on your next birthday. So for example, if you are 54 with a birthday in 6 months’ time, for the purposes of the policy we consider you to be 55.

3 Unemployment benefit is not applicable to policy with aggregate premium8 option.

4 For the same life insured, if the total premiums of all of the pending and in-force RetireEnrich Protection Plus, EarlyIncome Annuity Plan, RetireIncome Annuity Plan, Income Goal Insurance Plan and HSBC Wealth Goal Insurance Plan applications or policies of the life insured are more than the guaranteed approval limit of HKD40,000,000/USD5,000,000, the life insured is required to complete a number of simple health questions. And the Company reserves the right to accept or reject any applications for the plan based on the information provided by the life insured during application.

5 For a policy being surrendered in early years, the surrender proceeds to be received under the policy may be significantly less than the premiums paid. For aggregate premium8 policy, if you surrender the policy in full or partially through reduction of sum insured, a surrender charge which is subject to change by us from time to time will be imposed on the balance of aggregate premium8 together with interests accumulated.

6 Monthly Annuity Payment means Monthly Guaranteed Annuity Payment plus Monthly Non-guaranteed Annuity Payment, if any.

7 The written request must be submitted and accepted by the Company before the death of the life insured.

8 As the aggregate premium option allows you to pre-pay all the required premiums at a discount, the balance of the aggregate premium after deducting the annual premium on the relevant premium due dates will be accumulated with interest at such interest rate which is not guaranteed and may change from time to time at our discretion. No withdrawal from the balance of the aggregate premium together with interests accumulated is allowed once paid except in the event of death or surrender5. If the aggregate premium together with interests accumulated exceed the total premiums required under the Policy, any balance amount will be refunded to you as soon as all premiums due under the Policy have been settled. If the aggregate premium together with interests accumulated are not sufficient to cover the total premiums required under the Policy, you will then be requested to settle the premium shortfall upon receiving our written notification for the premiums due. Any failure to pay for the premium shortfall may result in lapsation of the Policy.

9 Total Premiums Paid refers to the total amount of premiums due (whether or not actually paid) as of the date of death of the life insured. Please refer to the policy for the detailed terms and conditions.

10 Monthly Guaranteed Base Annuity means the total annual premiums payable during the premium payment period divided by the number of Monthly Annuity Payments during the annuity period, subject to rounding adjustment.

11 Monthly Guaranteed Additional Annuity equals to the guaranteed percentage (guaranteed rate) of Monthly Guaranteed Base Annuity11, subject to rounding adjustment. The guaranteed rate, which depends on accumulation period chosen, is determined by the Company upon the issuance of the policy.

12 The Monthly Non-guaranteed Annuity Payment is determined by the amount of dividends, if any, accumulated by the end of the accumulation period and any projected dividends and interest payable during the annuity period. The amount is not guaranteed and may vary if there is any adjustment affecting the dividends. Such adjustment may include but is not limited to dividend withdrawal, change of dividend scale or applicable interest on the applicable accumulation interest rate on dividends balance.

13 Unemployment Benefit is applicable to policyholder aged between 192 and 642 who is the holder of the Hong Kong Identity Card. The benefit will terminate when the policyholder attains the age15 of 65 or all due premiums have been paid or the policy is terminated (whichever is the earliest). Such benefit is not applicable for aggregate premium8 policy.

14 The policy anniversary at which the policyholder or the life insured (as the case may be) reaches the specified age based on age at next birthday.

15 Additional Accidental Death Benefit and Terminal Illness Benefit will terminate when the life insured attains the age15 of 80 or payout of the relevant benefits or the policy is terminated (whichever is the earliest). Please refer to the policy provisions for detail terms and conditions of coverage and exception.

 

Disclaimers

The policyholder is subject to the credit risk of HSBC Life (International) Limited.

If the policyholder discontinues and / or surrenders the insurance plan in the early policy years, the amount of the benefit he / she will get back may be considerably less than the amount of the premium he / she has paid.

Past, current, projected and / or potential benefits and / or returns (e.g. bonuses, dividends and interest) presented herein are not guaranteed and are for illustrative purposes only.

The actual future amounts of benefits and / or returns may be lower than or higher than the currently quoted benefits and / or returns.

EarlyIncome Annuity Plan is underwritten by HSBC Life (International) Limited ("the Company") which is authorised and regulated by the Insurance Authority (IA). The Hongkong and Shanghai Banking Corporation Limited (referred to as "HSBC") is an insurance agent authorised by the Company. Your benefit is subject to the credit risk of the Company. Your premiums paid will form part of the Company's assets. You do not have any rights or ownership over any of those assets. Your recourse is against the Company only. This product is a product of the Company but not HSBC and it is intended only for sale in the Hong Kong SAR.

Please refer to the respective product brochure for detailed features and the policy provisions for the detailed terms and conditions.

In the event of any inconsistency between the English version and the Chinese version, the English version shall prevail.

HSBC Life (International) Limited is incorporated in Bermuda with limited liability, and is one of the HSBC Group's insurance underwriting subsidiaries.