AXA Hong Kong and Macau enhances retirement security with new offering

AXA Hong Kong and Macau enhances retirement security with new offering | Insurance Business Asia

Life & Health

AXA Hong Kong and Macau enhances retirement security with new offering

New product features flexible annuities, tax incentives, etc.

Life & Health

By
Roxanne Libatique

AXA Hong Kong and Macau has rolled out its latest financial product, the IncomeBliss Deferred Annuity Plan, aimed at supporting individuals in their retirement planning.

This offering allows policyholders the choice of denominating their policies in either Hong Kong dollars or US dollars, along with flexible premium payment and annuity receipt options.

IncomeBliss features

The plan is structured to permit selections between five-year and 10-year premium payment durations, enabling early commencement of guaranteed monthly annuity receipts from the age of 50 for a duration of either 10 or 20 years. It is designed to afford policyholders the potential of augmented returns through the provision of “monthly non-guaranteed annuity payments.” This arrangement offers the flexibility for payouts to be received in cash or to accrue with interest, based on the policyholder’s preference.

Tax incentives under the plan include a deduction ceiling of HKD60,000 per annum for qualifying annuity premiums, complemented by a 5% discount on annual premiums throughout the payment period.

The “Dementia Advance Benefit” feature is poised to offer financial relief by making a pre-emptive lump sum payment upon the diagnosis of severe dementia, aiming to mitigate the financial implications of healthcare expenses.

Key benefits of the IncomeBliss Plan extend to include the Accident Premium Waiver Benefit (safeguarding policyholders against premium payments in cases of accident-induced total disability) and an Extended Grace Period Benefit (offering an extended premium payment grace period in the event of unemployment).

AXA Hong Kong and Macau launches IncomeBliss

Addressing the plan’s launch, Janet Lee, chief life and health insurance officer for AXA Hong Kong and Macau, emphasised the growing challenge of aging populations.

“The problem of aging population is becoming increasingly serious, and AXA has been committed to filling the protection gap in the market, while actively encouraging the public to engage in comprehensive financial planning early to meet their retirement needs,” Lee said.