If you’ve turned 35footnote2 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. 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.
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.
Your savings is made up of:
You can choose how your annuity will be paid to you
Enjoy life cover with your total premiums paidfootnote9 fully protected. If you were to die, your beneficiary(ies) will be entitled to the death benefit.
You can choose in writing on how the death benefit will be paid7footnote7. The beneficiary(ies) will receive
You can choose the premium payment option that works for you. Pay monthly or annual premiums for 3 years, or choose the aggregate premiumfootnote8 option. The total amount you need to pay is fixed at the beginning of your policy so there are no surprises.
EarlyIncome Annuity Plan is generally available to anyone aged between 35footnote2 and 75footnote2. 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.
When life surprises you, additional benefits included in this policy can offer you more support at no extra premiums.
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 80footnote14(whichever is earlier). In this case, we’ll pay an additional sum equal to 30% of the Total Premiums Paidfootnote9on top of the death benefit payable to your beneficiary(ies).
If you are diagnosed with a terminal illness before the end of the policy term or the age of 80footnote14(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.
If you are unemployed for more than 30 consecutive days before the age of 65footnote2, 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 premiumfootnote8 option.
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.
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.
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.
|Asset Type||Allocation %|
|Income Goal Insurance Plan||Other Plans|
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.
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 - in respect of non-guaranteed benefits
Total Payout Ratio - in respect of total benefits including guaranteed and non-guaranteed benefits
At HSBC, we know that priorities change. That’s why we give you the power to make changes to your policy online anytime.
It's easy to:
Sometimes life doesn’t go according to plan and you’ll want to make an insurance claim as soon as possible.
Call our life insurance helpline on (852) 2583 8000(852) 2583 8000. You may also download and return the completed form to us by fax.
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.
The Monthly Annuity Paymentfootnote6 consists of Monthly Guaranteed Annuity Payment (Monthly Guaranteed Base Annuityfootnote10 plus Monthly Guaranteed Additional Annuityfootnote11) plus Monthly Non-guaranteed Annuity Paymentfootnote12.
The amount of the Monthly Non-guaranteed Annuity Paymentfootnote12 may vary as a result of any dividend withdrawal or any adjustment affecting the dividends.
If you surrender the policy at anytime during the policy term, you will receive the surrender value of the policy, which is equal to the sum of the guaranteed cash value, any accumulated Monthly Annuity Paymentfootnote6 and any accumulated dividends and interest.
If this is a aggregate premiumfootnote8 policy, the surrender value will be paid together with the balance of the aggregate premiumfootnote8 together with interests accumulated subject to a surrender charge to be determined at the Company's discretion from time to time.
Please note that early surrender of the policy may result in you getting back a lesser amount than the total premiums you have paid into the policy.
The Monthly Non-guaranteed Annuity Payment is mainly derived from the accumulated dividends and interest and projected dividends and interest, if any. Any adjustment affecting the dividends, which may include but is not limited to dividend withdrawal, change of dividend scale or applicable accumulation interest rate on dividends balance, will trigger re-calculation of the Monthly Non-guaranteed Annuity Payment and the future dividends to be credited in the policy may be adjusted accordingly. The balance of the accumulated dividends and interest, if any, after each Monthly Non-guaranteed Annuity Paymentfootnote12 will gradually decrease with the intention that it will be reduced to zero at the end of the Annuity Period.
There is a 30-day grace period for premiums payment that are due. If you cannot make the payment by the end of the grace period, your policy will lapse with effect from the due date of the first unpaid premium unless the net cash value calculated as at the date immediately preceding the due date of the relevant unpaid premium is greater than zero and you have elected a non-forfeiture option which will then take effect; or if no non-forfeiture option is elected and the amount of net cash value is sufficient to pay the relevant unpaid premium, an automatic premium loan equivalent to the amount of the unpaid premium will be granted and applied to pay such due premium. Interest will apply on the principal of all policy loans (including automatic premium loan) made under the policy and you will be advised of such rate of interest at that time, which may be adjusted by the Company at its discretion from time to time.
Please note that the Monthly Annuity Paymentfootnote6 will only be paid on each policy monthiversary, provided that all premiums due up to such monthiversary have been fully paid.
EarlyIncome Annuity Plan differs from a pure savings plan in that it includes life insurance cover throughout the policy term and provides a stream of monthly annuity payment during the annuity period. In the event of death of the life insured, the total amount that we have paid to you (if any) together with the amount that we will pay to your beneficiary(ies) is at least equal to 101% of the Total Premiums Paidfootnote9.
As the aggregate premiumfootnote8 option allows you to pre-pay all the required premiums at a discount, the balance of the aggregate premiumfootnote8 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 premiumfootnote8 together with interests accumulated is allowed once paid except in the event of death or surrender.
If you cancel the policy or partial surrender, the balance of aggregate premiumfootnote8 together with interests accumulated will be paid subject to a surrender charge to be determined at the Company's discretion from time to time.
Please be aware that if you choose the aggregate premiumfootnote8 option, you should ensure that you can afford to leave your pre-paid lump sum in your plan. You are therefore advised to choose at the time of application the premium payment method that best fits your financial circumstances.
1 EarlyIncome Annuity 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 premiumfootnote8 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 premiumfootnote8 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 premiumfootnote8 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 surrenderfootnote5. 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 Annuityfootnote11, 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 19footnote2 and 64footnote2 who is the holder of the Hong Kong Identity Card. The benefit will terminate when the policyholder attains the agefootnote15 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 premiumfootnote8 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 agefootnote15 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.
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.