Many people consider creating a steady and lifelong retirement income, hoping to enjoy fixed amount of monthly payouts until death. Annuity plan offer flexible options that can assist you in effortlessly enjoying a monthly retirement income.

However, with the wide variety of annuity products available in the market, how does one make the right choice? This article aims to introduce different types of annuity plans, allowing you to select the most appealing insurance solution based on factors such as different life stages, durations, and other relevant considerations.

Enjoy Your Retirement Life and Tax Incentive at the Same Time

Retirement is a process, not just a single event. To support your desired lifestyle during retirement, you need to plan ahead with the right tool to help you accumulate and build your retirement reserves. A Qualifying Deferred Annuity Policy (“QDAP”) certified by the Insurance Authority, is an annuity insurance plan which provides regular annuity income during the annuity period for you to achieve a hassle-free retirement, at the same time allows you to apply for tax deduction with the premium you paid

Why is an annuity plan necessary?

An annuity plan is a long-term insurance product that can help you convert your funds into a stable stream of cash income, typically paid monthly or annually. This allows you to systematically use your retirement savings to cope with the financial risks brought about by longevity. In addition, a QDAP certified by the Insurance Authority allows you to apply for tax deductions with the premium you paid.

What types of annuity plans are there?

Firstly, annuity plans can be divided according to the time of extraction, including immediate annuity plans and lifetime annuity plans. The former involves paying the premium in a lump sum and immediately receiving pension income, while the latter involves paying the premium in a lump sum or in installments at a younger age and receiving pension income at a designated year or age.

Annuity plan can also be classified by the term of the annuity payment, including lifetime annuity plans and term certain annuity plans. Gold Fortune Deferred Annuity Plan offers a choice of 5 or 10 years of premium payment period in different installments.

For further information about annuity plan, please contact Chubb Life Hong Kong Insurance Consultant or call our Customer Service Center Hotline at (852) 2894 9833 to schedule a free consultation.

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Disclaimer - All contents of this article are intended for general information/guidance purposes only and not intended to be an offer or solicitation of insurance products or personal advice or a recommendation to any individual or business of any product or service. This article should not be relied on for legal advice or policy coverage and cannot be viewed as a substitute to obtaining proper legal or other professional advice, or for reading the policy documents. You should read the policy documents to determine whether any of the insurance product(s) discussed are right for you or your business, noting different limits, exclusions, terms and conditions apply in each country or territory, and not all cover is available in all countries or territories.</sup>