CCW Global can provide comprehensive advice for this unique type of life insurance product, and can help identify which Hong Kong annuity insurance plan would best meet your requirements.
As previously defined, an annuity is defined as a contract where an insurance company promises to make a series of periodic payments to a designated individual, throughout the lifetime of a person or for an agreed period, in return for a payment or series of payments by the purchaser.
This means that an annuity life insurance plan will provide a continual series of payments to a beneficiary, normally for an agreed period, in return for a premium payment or payments. Under a simple annuity policy no more payments would be made if the annuitant (the person throughout whose lifetime payments are being made) dies before all the funds are distributed. This means that any additional funds yet to be paid out would be consumed by the insurer.
Because this tends to have little wide scale appeal annuities are not common in Hong Kong, however they can have their uses – especially with elderly individuals who wish to guarantee an income whilst managing their access to their money.
Immediate and Deferred Annuity
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Immediate and Deferred Annuity
An immediate annuity is usually purchased via a single premium payment and the annuity payments will usually begin one month after the premium is received. Under a Deferred Annuity the payments provided by the insurer would normally begin only after an agreed time period has passed.
It is possible for a wide number of variations to exist in the structure of an Annuity Insurance product in Hong Kong. From annuities which provide benefits payments to occur for a specific number of years, whether a death occurs or not (also known as annuity certain) to policies which offer annuities only for the lifetime of the annuitant (known as life annuity) a number of options are available to insurance purchasers in Hong Kong.
One type of annuity policy, known as Life Income Annuity with Period Certain or Guaranteed Annuity, offers payments for a least a specified number of years, whether a death occurs or not, and for life if the annuitant survives that period.
As can be seen from this example flexible and innovative combinations of annuity products exist in Hong Kong, enabling policyholders to properly plan for their financial futures.
Generally, the underwriting considerations for Annuity products in Hong Kong is completely the opposite of the underwriting principals of conventional life insurance products.
Under traditional life insurance plans premiums will normally increase with age, and will usually be higher for men than women of the same age. However, with annuity products the amount of each annuity benefit payment will increase with age, and men will generally receive higher annuity payments than women.
In very simple terms, an annuity product is based on the chances of the insured living while a life insurance product is based on the chances of the insured dying.
Annuity Insurance Quotes in Hong Kong
If you would like to receive a free quote for an annuity insurance plan in Hong Kong, please complete the short form at the top of this page. A CCW Global Insurance Broker will contact you shortly to discuss your annuity insurance requirements.
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