Hong Kong-based Hang Seng Insurance has introduced an updated version of its FortuneLife Deferred Annuity Life Insurance Plan, a qualifying deferred annuity policy (QDAP).

The enhanced plan aims to assist individuals in securing a stable passive income for retirement.

It features a projected total internal rate of returns ranging from 3.79% to 4.35% for Hong Kong and US dollar policies, and from 2.60% to 3.19% for Chinese yuan policies.

A recent survey among 550 Hong Kong working professionals aged 18-65 revealed that only about 22% are confident in their retirement funds, Hang Seng Insurance said.

Among the confident, 70% started saving early, and 61% included passive income strategies in their plans.

Less than one third bought QDAP, but 50% are considering investing in it, especially younger people, with nearly 60% interested.

Hang Seng Insurance said there is a 150% increase in QDAP adoption among customers aged 31-40 in 2023 compared to its launch year in 2019.

This trend highlights the growing interest in retirement planning among the younger demographic in Hong Kong.

The FortuneLife plan offers flexible premium payment terms of five or ten years and is available in Hong Kong dollar, Chinese yuan and US dollar.

It features multiple accumulation and annuity period choices, tax deductions up to HK$60,000 per tax year, and potential annual tax savings of up to HK$10,200.

Policyholders of FortuneLife can also gain access to life protection and additional benefits such as accidental death benefit, accelerated death benefit, and unemployment benefits.

Hang Seng Insurance CEO

Joe Lam said: "With Hong Kong residents enjoying the world's second-highest life expectancy according to the latest United Nations statistics, it is crucial to prioritise early retirement planning. QDAP has been instrumental in providing a reliable passive income to support retirement needs."

"Hang Seng launches enhanced version of FortuneLife annuity policy " was originally created and published by Life Insurance International, a GlobalData owned brand.

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