Income Goal Insurance Plan¹

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 as determined by the Company. The amount of the annual dividends, if any, may vary from time to time at the Company’s discretion. Non-guaranteed special bonus to be declared at the commencement of the annuity payment period, i.e. on month 121 or 181 of taking out the plan

See more about our policy dividends 

Payment

You can choose how your savings will be paid to you

• Begin receiving your monthly annuity payment for 10 years from month 121 or 181 (not applicable to 10 years premium payment period) of taking out the plan, depending on the accumulation period you choose
  
• Leave your savings in the plan to rollover and grow with interest, if any

Life cover

Enjoy life cover with your total premiums paid fully protected⁸

If you were to die, your beneficiary(ies) will receive 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 how the death benefit will be paid while the Life Insured is still alive. The beneficiary(ies) will receive

• The death benefit in one lump sum payment, or;
• The unpaid Monthly Annuity Payment on a monthly basis until the end of the annuity period (this option is only applicable if the death of the life insured occurs during the annuity period)

Note:

If the policyholder chooses Option 1, the beneficiary(ies) will receive the death benefit in one lump sum payment.

If the policyholder chooses Option 2, the beneficiary(ies) will continue to receive the unpaid Monthly Annuity Payments together with the future dividends, if any, under the policy over the remaining annuity period⁵.

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

Am I eligible?

Income Goal Insurance Plan is generally available to anyone who is between 15 days after birth to aged 65³.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. 

More help when you need it

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

Additional Accidental Death Benefit¹¹

This extra benefit cover if the life insured die as a result of an accident before the end of the policy term or the age of 80³ (whichever is earlier). In this case, we’ll pay an additional sum equal to 30% of the Total Premiums Paid⁸ to your beneficiary(ies).

Payor’s Benefit (for a child’s policy)¹²

If you buy this policy for your child - aged 18³ or below – and you die or become temporarily disabled for at least 183 days, we will waive the future premiums until Payor’s Benefit terminates. Such benefit is not applicable for single premium policy.

Terminal Illness Benefit¹¹

If the life insured is diagnosed with a terminal illness before the end of the policy term or the age of 65³ (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 Benefit¹⁰

If you are unemployed for more than 30 consecutive days before the age of 65³, , you can defer payment of your premiums for up to 365 days.You will still enjoy the full protection of your policy throughout.

Critical Illness Select Benefit (additional payment) (optional)⁶

For an extra cost, this optional benefit provides cover until the life insured reaches the age of 65³ or end of policy term whichever is earlier. The plan will pay a lump sum if the life insured is diagnosed with one of the covered illnesses. Health questions are required for the application.

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

All the information you need in one place

Income Goal Insurance Plan Product Brochure

See more details of your Income Goal Insurance Plan policy.

Policy dividend for Participating Products

(Not applicable to HSBC Wealth Goal Insurance Plan)

Participating policy

HSBC Life (International) Limited ("the Company") issues participating policies, which are life insurance contracts providing both guaranteed and non-guaranteed benefits. The non-guaranteed benefits comprise the policy dividends which allow policyholders to participate in the financial performance of the life insurance operation. The policy dividends, if any, are in form of:

i) Annual dividends which are declared by the Company on an annual basis. Once declared, the amount of annual dividends for the year becomes vested and will be credited to your policy.

ii) Special bonus(applicable to Income Goal Insurance Plan only) which is a one-off entitlement declared at some a pre-determined policy year or upon early termination of the policy (e.g. death, surrender etc.) before the pre-determined policy year. The amount of special bonus may change from time to time based on the performance over the entire period before such declaration as well as the prevailing market condition and the actual amount will not be determined until it is payable.

Please refer to the policy provision of the respective plans for detailed terms and conditions.

The policy dividends (including annual dividends and special bonus) are not guaranteed, whether they are payable and the size of the dividends to be paid depend on how well the Company has performed with regard to investment returns on the assets supporting the policies, as well as other factors including but not limited to claims, lapse experience, expenses, and the long term future performance outlook. If the performance over the long term is better than assumed level, then dividends paid would increase and if performance is worse than expected then dividends paid would reduce.

The key feature of participating policies over other forms of insurance policies is that in addition to the guaranteed benefits receivable, policyholders will also benefit from additional dividend payments if the insurance company's 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

The Company conducts regular review on the level of dividends payable to policyholders. Both the actual performance in the past and also management's outlook of the long term future performance will be assessed against the assumed level, and where variances arise, gains and losses will be shared with policyholders in a fair and equitable manner though the adjustment of dividend scales.

When considering the adjustment of dividend scales, the Company also operates a smoothing philosophy in order to maintain a more stable payout to policyholders, so the level of dividends will only be changed if the actual performance is significantly different from the assumed level over a period of time or if management's expectation of the long term future performance changes substantially.

In order to ensure the fairness between policyholders of participating products, the Company will carefully consider the experiences of different groups of policies (e.g. different products, currencies, issue years etc.) so that each group of policies will receive a fair return reflecting mostly its own performance. To balance the interest between policyholders and shareholders, a dedicated committee is established to provide independent advice on the management of the participating policies and the determination of dividends.

Investment Policy and Strategy

The Company follows an asset strategy that

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

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

iii) Abides by a pre-defined set of risk tolerance.

The assets supporting the participating policies predominantly consist of fixed income assets issued by corporate entities with good credit quality (average A-rated or above) and long term prospects. Growth assets, including equity-type investments and alternative investments such as property, private equity and hedge fund as well as structured products including derivatives, are utilized in order to deliver returns reflecting real economic growth in the long run.

Our investment portfolios are well diversified in different types of assets, and are invested in different geographical markets (mainly Asia, US and Europe), currencies (mainly HKD and USD) and industries. The assets are carefully managed and monitored according to a pre-defined set of risk appetite.

There could be slight deviation from the above range due to market fluctuation.

Actual allocations will take into consideration past investment performance of the assets supporting the policies, prevailing market conditions and future outlook, and the guaranteed and non-guaranteed benefits of the policies. This includes assessing factors such as risk tolerance and real economic growth over the appropriate time horizon.

For assets supporting Income Goal Insurance Plan, the exposure to growth assets is normally within the range of 0% to 40% during the accumulation period and the exposure will be reduced at the absolute discretion of the Company during the annuity period in order to achieve a relatively stable investment return.

Accumulation interest rate

Policyholders can choose, amongst other options, to accept their dividends, endowment coupons and annuity payments either in cash or to leave them with the Company to accumulate with interests (if applicable). The rates of interests are not guaranteed and will be determined by the Company from time to time. The review on such accumulation interest rates will be conducted regularly with reference to the portfolio bond yields, prevailing market conditions, outlook on bond yields, and the likelihood of policyholders leaving their payment for accumulation.

Fulfillment Ratio and Total Payout Ratio

Fulfillment Ratio [PDF] - in respect of non-guaranteed benefits

Total Payout Ratio [PDF] - in respect of total benefits including guaranteed and non-guaranteed benefits