Latest FTLife Insurance Company News
Jan 25, 2021
Intellasia East Asia News FTLife launches Prosperous Deferred Annuity Plan 2 for customers’ retirement need with tax deduction In survey, 70% saidthey lack confidence in retirement due to pandemic, four times that pre-Covid level. Top three retirement worries are rising medical expenses (53%), lack ofstable income (52%) and managing expenses (50%); High marketvolatility arouses risk-adverse sentiment among Hongkongers. 37% of therespondents prefer to hold cash savings, especially for young people agedbetween 20 and 29 (62%). Around a quarter are more interested in capitalguaranteed or low risk investment. Many people are re-examining theirretirement needs, with 62% of the respondents expressing interest insubscribing to a qualifying deferred annuity plan in the coming year. FTLife is launchingProsperous Deferred Annuity Plan 2, which is open to customers who are 20 yearsold or above. The guaranteed breakeven period is as short as eight years and the range of total internal rate of return at maturity between 3.28%to 4.32%  ,so as to encourage different customers, especially the younger generation, tostart their retirement planning early for a better future. HONG KONG SAR - Media OutReach - 25 January 2021 -FTLife Insurance Company Limited ("FTLife") commissioned a market researchcompany to conduct "Retirement Planning and Confidence Survey" in December 2020.The survey interviewed 405 working adults aged 20 or above to understand howthe pandemic affects Hongkongers' retirement planning, wealthmanagement preferenceand behaviours. FTLife launches ProsperousDeferred Annuity Plan 2 (Prosperous 2) today. From now until 31 March 2021,customers who successfully subscribe to Prosperous 2 as well as one of the designatedVoluntary Health Insurance Scheme plans or insurance plans (basic plan/rider)can enjoy up to 15% of first-year premium refund. The minimum issue age ofProsperous 2 is 20 years old and the range of total Internal Rate of Return atmaturity can be up to 3.28% to 4.32%, helping customers achieve a stable andindependent retirement life. COVID-19 pandemic has deeplyimpacted the global economy. The survey revealed increased pessimistic aboutretirement among respondents since the start of the pandemic. Before the outbreak,around 16% said that they lacked confidence in retirement. During the pandemic,the number quadrupled to around 70%, illustrating how the pandemic hasintensified Hongkongers' worries about retirement. The top three worries cited arerising retirement medical expenses (53%), a lack of stable income post-retirement(52%) and greater difficulty coping with retirement expenses (50%). About a quarter (24%) of therespondents said their investment awareness has improved due to the uncertaineconomy. However, two fifths (41%) are concerned about not making good investmentdecisions in the current volatile market owing to a lack of market andinvestment knowledge. This is especially true among theyounger generation. Half (52%) of the younger respondents (aged 20 to 29) saidthey lacked knowledge on investment products and nearly three fifths of them (59%)said they did not know how to do mid- to long-term financial planning. Almostthree quarters (73%) said they have no regular saving habits. Only 17% of those respondents aged30 and over said they have no regular saving habits, with 40% saying they didnot know how to do such financial planning. That said, about one-third (35%) ofthis group said that they didn't have enough knowledge about investment products. Due to the volatile market and thepandemic, Hongkongers have become more risk-adverse leading to the adoption of moreconservative investment strategies. Nearly two fifths (37%) of those surveyedprefer to hold cash savings, especially those agedbetween 20 and 29 (62%). A quarter (25%) of the respondents are moreinterested in capital guaranteed or low risk investment. As the pandemic continues and dentsHongkongers' confidence in retirement, more respondents expressed their desirefor a stable income in retirement (55%) and acknowledged that qualifying deferredannuity plan is a suitable first step of retirement planning (41%). FTLife Chief CommercialOfficer and Chief Product Officer Christine Yeung said:"Our latest survey found that Hongkongers' confidence in retirement dropped duringthe pandemic and many young people did not have regular saving habits. This mayresult in missing the best timing to save for retirement and to achieve the rollingeffect of compound interest. Regardless of any economic cycle, it is best toplan retirement early. For Hongkongers with limited amount of capital and littleinvestment experience, they can consider subscribing to a qualifying deferred annuity plan to start savingearly. They can enjoy tax deductions while taking the first step to plan forretirement." With regard to the public's retirement needsunder the pandemic, FTLife further investigated the public's acceptance rate ofa qualifying deferred annuity plan in thesurvey. The pandemic has prompted people to review their retirement protectionneeds. More than three fifths (62%) of the respondents are interested in subscribingto a qualifying deferred annuity plan in thecoming year. The most attractive features of such a plan include: stable incomein retirement (82%), regulatory supervision (53%), payment in installments involvingsmaller amounts (47%), tax deductions (45%), higher guaranteed cash value andlower investment risk (30%). In response to increasing public demand of worry-free retirement, FTLifeis launching the Prosperous Deferred Annuity Plan 2 ( Prosperous 2) and settingthe minimum issue age at 20 years old. This will allow customers to start theirretirement planning at an early age and enjoy tax deductions at the same time. Prosperous 2 is certified by the Insurance Authority as atax-deductible qualifying deferred annuity policy, with options for PremiumPayment Period and Accumulation Period. Customers can accelerate potentialwealth growth through guaranteed cash value and non-guaranteed terminaldividend  . The guaranteed breakeven period can be as short as eight years1and the range of total internal rate of return at maturity is between 3.28% to4.32% 2 . During the annuity period, Prosperous 2 provides two extra protectionthat are exclusive  inthe market: Travel Accidental Benefit and Terminal Illness Benefit. Ms. Yeung added: "Prosperous Deferred AnnuityPlan has been welcomed by customers since its launch. The enhanced version is beinglaunched during this special period to meet market demand and provideHongkongers with a simple but reassuring retirement plan. This is to encouragemore people to plan their retirement ahead, benefit from compound interestreturn for a longer period, and utilise the best time to save for retirement.With the diversified Voluntary Health Insurance Scheme that FTLife offers, weare confident to provide customers of different ages an ideal retirementplanning package, helping customers achieve a stable and independent retirementlife while protecting capital and against health risks." From now until 31 March 2021, customers whosuccessfully subscribe to Prosperous 2 as well as one of the designated VoluntaryHealth Insurance Scheme plans or insurance plans  (basic plan/rider) can enjoy up to 15% of first-year premium refund  . Important notes: Theinformation contained in this press release is intended as a general summary ofinformation for reference only. For details, please refer to relevant productbrochures and client incentive leaflet. Please refer to the policy provisionfor full terms and conditions about FTLife "Prosperous Deferred Annuity Plan2". Thispress release does not contain the full provisions of Prosperous Deferred AnnuityPlan 2 and the above-mentioned designated insurance plans, and the full termscan be found in the Policy documents. ProsperousDeferred Annuity Plan 2 and the above-mentioned designated insurance plans maybe purchased as a standalone planwithout bundling with other type(s) of insurance product. ProsperousDeferred Annuity Plan 2 is a qualifying deferred annuity policy, but this doesnot mean that the qualifying deferred annuity premiums paid by the policyholderand relevant persons are eligible for tax deduction. The nature of qualifyingdeferred annuity policy for this product depends on the product characteristicsand the certification issued by the Insurance Authority, and not on theindividual circumstances of the policyholder and related persons. Policyholdersand the relevant persons should meet all eligibility requirements under theInland Revenue Ordinance of the Hong Kong Special Administrative Region InlandRevenue Department before claiming tax deductions. Fordetails on tax deductions, please visit Inland Revenue Department of HKSARwebsite www.ird.gov.hk andconsult your tax and accounting advisors for tax advice. FTLife does not provide any tax, legal oraccounting advice or consultation. If you have any questions, please seekprofessional advice from your independent tax, legal and accounting advisors.The information in this pressrelease doesnot constitute any tax advice. Forfurther details, please contact FTLife's Customer Service Hotline on +852 28668898. Thisdocument is for distribution in Hong Kong only. It is not an offer to sell orsolicitation to buy or provision of any insurance product outside Hong Kong.FTLife does not offer or sell any insurance product in any jurisdiction outsideHong Kong, in which such offering or sales of the insurance product is illegalunder the laws of such jurisdictions.  Calculated based onthe 5-year premium payment period and annual premium payment mode. Guaranteedbreak even period refers to the policy year that the guaranteed cash value isequal to or greater than the premium paid for the first time (refers to thetotal amount of premium(s) due and paid for the basic plan. If customer partiallysurrenders this Policy, the total premiums paid will be proportionatelyreduced.).  Calculation of totalinternal Rate of Return at maturity includes Guaranteed Monthly Annuity Paymentand Non-guaranteed Monthly Annuity Payment, and assumes that the Annuitantreceives annuity payment on a monthly basis. Assuming the Annuitant is a 45years old non-smoker male at application, 3.28% of total Internal Rate ofReturn at maturity is calculated based on 9-year premium payment period withmonthly premium payment mode and 10 years of accumulation period. While 4.32%of total Internal Rate of Return at maturity is calculated based on 5-yearpremium payment period with annual premium payment mode and 30 years ofaccumulation period. This is calculated on a best estimate basis which is basedon the current dividend scale and assume no cash withdrawal or policy loanduring the entire policy and all premiums have been paid in full within thepremium payment period. The current dividend scale does not reflect futureperformance and is non-guaranteed. Please refer to the policy provisions fordetails.  Terminal Dividend isnon-guaranteed and will be paid upon policy termination (except maturity) andpartial surrender. Please refer to the policy provisions for details ofTerminal Dividend.  The"Market Exclusive" item is the result comparing similar Qualifying DeferredAnnuity Plan policies of major life insurance companies in Hong Kong, until 25January 2021. During Annuity Period, under the protection of (A) Travel AccidentalBenefit, disability of the Annuitant resulted from oversea accidents will becompensated and (B) TerminalIllness Benefit, the Annuitant is diagnosed with Terminal Illness will receive up to 12months of additional installment payments, are both exclusive in the market .  Voluntary Health InsuranceScheme Series: "TopCare" Medical Insurance Plan and "BetterCare" MedicalInsurance Plan; other designated insurance plans include Regent Insurance Plan2 Series, Regent Prime Insurance Plan (Premier), Regent Elite Insurance Plan(Premier), "HealthCare 168 Plus" Critical Illness Protector, MediGold Plus Insurance Plan and "On Your Mind"Insurance Plan.  Subject to terms andconditions, please refer to the promotional brochure for details. About FTLife Insurance Company Limited FTLife Insurance Company Limited ("FTLife") is one of the mostwell-established life insurance companies in Hong Kong and a wholly-ownedsubsidiary of NWS Holdings Limited. Building on a history of more than 30 yearsin the territory, FTLife provides individual and institutional clients with adiverse range of insurance and wealth management products and services,including life, health, accident, savings and investment insurance. As a memberof New World Group, FTLife works with diversified businesses within the Groupto create synergies and provides customers with best-in-class life-planningsolutions, from wealth management and succession to health, wellbeing andquality of life enhancement. About"Retirement Planning and Confidence Survey" FTLife Insurance Company Limited ("FTLife")commissioned a market research company to conduct "Retirement Planning andConfidence Survey" to understand how the pandemic affects Hong Kong peopleretirement planning, investment preference and behaviours. The survey wasconducted in December 2020 to collect data from 405 working people aged 20 orabove through street interviews. The survey mainly targets people with personalmonthly income above HK$20,000.