AIA Deferred Annuity Plan 2 Offer
Customers successfully apply between now and 30th June, 2025:
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Annualised Premium of Basic Plan |
Premium Refund (for each eligible policy) |
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US$5,000 or above |
20%* 5% premium refund in each year from 1st policy year end to 4th policy year end |
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Only the paid premiums of Qualifying Deferred Annuity policies can apply for tax deductions whereas the premium refund and premium discount (including e-premium coupon, if any) are not included. |
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*Terms and conditions apply. Please download and refer to the promotion leaflet for details.
Plan Highlights
• Stable returns for retirement
AIA Deferred Annuity Plan 2 is a participating insurance plan that provides guaranteed cash value and Monthly Annuity Payment for retirement. The Monthly Annuity Payment is comprised of both guaranteed and non-guaranteed portions. You can specify a person to become the annuitant, who is the person to receive the Monthly Annuity Payment during the 10 years Annuity Period and who is also the insured under the policy.
You may choose for the annuitant to start receiving Monthly Annuity Payment at age 50, 55, 60, 65, 70 or 75 (i.e. the Annuity Payment Start Age). The payment is under level pattern which means a fixed amount of guaranteed Monthly Annuity Payment will be paid monthly during the Annuity Period, giving the annuitant greater stability during retirement.
Alternatively, you may choose to accumulate the Monthly Annuity Payment in your policy to potentially gain interest for your withdrawal later. If no annuity payment option has been chosen by you, we will pay the Monthly Annuity Payment to the annuitant monthly during the Annuity Period. You can change your annuity payment option without additional charge.
Also, once the policy has been in force for a year, we may provide you with a one-off non-guaranteed cash amount (if any) called a Terminal Dividend upon the occurrence of the earliest of the following:
• you surrender the policy;
• the annuitant as the insured, who is the person protected under the policy, passes away before the policy terminates and the death benefit is payable in lump sum (according to the death benefit calculation); or
• the Terminal Illness Benefit is paid, provided the date of the second certification of the insured’s terminal illness is after the 1st policy year.
Monthly Annuity Payment is comprised of both guaranteed Monthly Annuity Payment and non-guaranteed Monthly Annuity Payment (if any). During the Annuity Period, the guaranteed cash value of this plan will decrease when the guaranteed Monthly Annuity Payment begins while non- guaranteed Monthly Annuity Payment (if any) will be credited into your policy on a monthly basis.
Both the non-guaranteed Terminal Dividend (if any) and the non-guaranteed Monthly Annuity Payment (if any) are a share of divisible surplus (if any) from this insurance plan and related participating insurance plans. Please refer to the sections “Dividend Philosophy” and “Investment Philosophy, Objective and Strategy” for details.
• 5-year premium payment term
AIA Deferred Annuity Plan 2 is denominated in US dollars, the minimum annual premium is US$4,800. With a 5-year premium payment term, the premium amounts are guaranteed to remain stable throughout the entire period of your premium payment term.
• Your choice of annuity arrangement for your retirement
AIA Deferred Annuity Plan 2 offers Annuity Period of 10 years and allows you to select the Annuity Payment Start Age, helping you to take control of the retirement life you deserve.
• Benefit received when policy matures
Provided that the insured is alive at the end of the benefit term, the policy will mature and we will pay you any accumulated Monthly Annuity Payment with interest accrued (if accumulation has been chosen as the payment option of Monthly Annuity Payment) and any Terminal Dividend in a lump sum.
• If the worst should happen
If the insured passes away, we will pay the Death Benefit to the person whom you select in your policy as beneficiary in a lump sum. Alternatively, you can choose in advance during the insured’s lifetime to allow the beneficiary to receive any unpaid Monthly Annuity Payment commencing from the insured’s death until the end of the Annuity Period, provided the death of the insured occurs on or after the commencement of the Annuity Period. For the details and calculation of the death benefit, please refer the section “Cover at a glance” for details.
• Terminal Illness Protection
AIA Deferred Annuity Plan 2 also helps alleviate the financial burden of medical expenses by providing the Terminal Illness Benefit. In the unfortunate event that the insured is diagnosed with a terminal illness and is expected to pass away within 12 months due to the terminal illness, we will pay you a one-off advance payment of the death benefit.
• Easy to join
No medical examination is required for AIA Deferred Annuity Plan 2 applications, as long as the total annual premiums do not exceed the aggregate limit which we set for each insured from time to time, subject to our prevailing rules and regulations.
• Delay premium payments in case of unemployment
Unemployment may cause a significant impact on your finances. Hence, the Unemployment Benefit helps ease your financial burden during tough times while keeping the insured protected, even if life takes an unexpected turn. Subject to terms and conditions and our approval, if you as the policy owner are laid off and become involuntarily unemployed during the premium payment term of your basic plan, you may claim for the Unemployment Benefit. Once it is approved, the grace period for late premium payment under the basic plan and any add-on plans will be extended from 31 days up to 365 days to give you a safe buffer. Your Unemployment Benefit claim needs to be submitted within 30 days of your involuntary unemployment. The Unemployment Benefit is available once per policy and relevant proof is required.
• Extra cover for more protection
To help support you against unfortunate circumstances, depending on your needs, you can select an add-on plan under which we will waive the future premiums for your AIA Deferred Annuity Plan 2 if the insured becomes totally and permanently disabled before the age of 60.
Please note that all add-on plans are subject to additional premiums, underwriting and exclusions. However, premiums of add-on plans are not eligible for tax deduction. All benefits under add-on plans will be terminated when your AIA Deferred Annuity Plan 2 terminates.
• Save more while planning your retirement
AIA Deferred Annuity Plan 2 is a qualifying deferred annuity policy where you can apply to deduct your premiums paid from your annual taxable income (if eligible). This means if you are taxpayer in Hong Kong, you can apply for tax deduction of up to HK$60,000* per taxpayer each year which may allow you to plan ahead to grow wealth for your retirement while also enjoying a tax deduction.
* HK$60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions.
For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice.
Notes:
- “We” herein refers to AIA International Limited (Incorporated in Bermuda with limited liability) (AIA).
- The above product information in this material does not contain the full terms of the product, for the details of the product features, terms and conditions, exclusions and key product risks, you may refer to the product brochure and policy contract of relevant products. In case you want to read policy contract sample before making an application, you can obtain a copy from AIA. Life insurance policies are long-term contracts of insurance. Should you surrender the policy early, you may receive an amount considerably less than the total amount of premiums paid.
- We would like to remind you to review the relevant product materials and proposal illustrations (if applicable) provided to you and seek independent professional advice if necessary.
Important Notes:
- The Bank of East Asia, Limited (“BEA”), being registered with the Insurance Authority as a licensed insurance agency, act as an appointed licensed insurance agent for AIA International Limited (“AIA”). This insurance plan is a product of AIA but not BEA.
- This insurance plan is underwritten by AIA and it is not a bank savings plan with free life insurance coverage. The premium paid is not a placement of a savings deposit with the bank and hence is not protected by the Deposit Protection Scheme in Hong Kong. AIA Deferred Annuity Plan 2 is an insurance plan with a savings element. Part of the premium pays for the insurance and related costs. If you are not happy with your policy, you have a right to cancel it within the cooling-off period and obtain a refund of any premiums and levy paid. A written notice signed by you should be received by the Customer Service Centre of AIA International Limited at 12/F, AIA Tower, 183 Electric Road, North Point, Hong Kong within the cooling-off period (that is, 21 calendar days immediately following either the day of delivery of the policy or cooling-off notice (informing you / your nominated representative about the availability of the policy and expiry date of the cooling-off period, whichever is earlier).After the expiration of the cooling-off period, if you cancel the policy before the end of the term, the projected total cash value may be substantially less than the total premium you have paid.
- In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between BEA and the customer out of the selling process or processing of the related transaction, BEA is required to enter into a Financial Dispute Resolution Scheme process with the customer.
- For the benefits and returns mentioned throughout this materials, please note that the policy owner is subject to the credit risk of AIA. If the policy owner discontinues and/or surrenders this policy in early policy years, the amount of benefits he/she will get back may be considerably less than the total premiums he/she has paid. Projected and/or potential benefits and/or returns (e.g. non-guaranteed monthly annuity payment, terminal dividend, interests)) presented in this materials are not guaranteed and are for illustrative purposes only. The actual future amounts of benefits and/or returns may be lower than or higher than the currently quoted benefits and/or returns.
Tax Implication of Qualifying Deferred Annuity Policy (QDAP)
AIA Deferred Annuity Plan 2 has been certified by the Insurance Authority as Qualifying Deferred Annuity Policy (“QDAP”).
Please note that the qualifying deferred annuity policy (QDAP) status of this product does not necessarily mean you are eligible for the tax deduction available for QDAP premiums paid. This product’s QDAP status is based on the features of the product as well as certification by the Insurance Authority (IA) and not the facts of your own situation. You must also meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department (IRD) of HKSAR before you can claim these tax deductions.
Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws regulations or interpretations, and how they may affect you. Further information may be found in IA’s website at www.ia.org.hk.
Please note that under this plan, the policyholders / policy owners can be aged 65 or above and who may be retirees. Such persons will not be subject to salary tax or tax under personal assessment in Hong Kong and will therefore not be eligible for tax deduction benefits.
Certification by Insurance Authority (IA)
