Manulife Hong Kong launches tax-deductible ManuLeisure Deferred Annuity

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Manulife Hong Kong launches tax-deductible ManuLeisure Deferred Annuity
2019/10/9
Helping young and middle-aged pre-retirees generate retirement income
with a flexible income starting age
 

For Immediate Release                                                                                                                   TSX/NYSE/PSE: MFC            SEHK: 945

October 9, 2019
 
 
Hong Kong – Manulife Hong Kong has launched ManuLeisure Deferred Annuity (ManuLeisure), a tax-deductible Qualifying Deferred Annuity Policy (QDAP) certified by the Insurance Authority. Targeting young and middle-aged pre-retirees, ManuLeisure helps customers enjoy tax concession benefits while offering a flexible and self-scheduled stream of retirement income. The total projected internal rate of return (IRR) could range from 3.85% to 4.30%1
 
Wilton Kee, Chief Product Officer for Individual Financial Products at Manulife Hong Kong, said: “Based on our recent survey2, we are glad to see a surge in public awareness in annuities as an extra means of savings, with 50% of respondents being aware of the product compared with 28% from previous finding earlier this year. Nearly 40% of respondents said they were likely to purchase a deferred annuity product as a retirement planning tool, 6 percentage point more than earlier this year.”
 
Mr. Kee added, "Riding on the increased public interest and the positive response towards tax-deductible deferred annuity policy, we have designed a new comprehensive plan to encourage young and middle-aged customers to step up their retirement savings starting from as low as the age of 18 to leverage future potential retirement income while they save for tax. We understand that customers want to pick and choose with flexibility and we want to empower them with options that suit their own needs.”
 
With a wide issue age ranging from ages 18-60 and designed to support customers in building a steady retirement income stream, ManuLeisure offers the following key features:
 
  • Tax benefits as customers save for their retirement: By taking up ManuLeisure, customers can be entitled to a tax deduction for their paid qualifying deferred annuity premiums up to a maximum limit of HK$60,0003 per assessment year per taxpayer. 
     
  • Steady stream of income for retirement with annuity starting from an age of the customers’ own choice: Once the customers have reached the annuity start age of their own choice, at either age 55, 60, 65 or 70, they can start receiving a monthly annuity income until age 85. This income is comprised of a guaranteed portion, which is stable throughout the annuity income period, and a non-guaranteed portion which is determined by dividends built up in the policy. Alternatively, customers can leave their guaranteed and non-guaranteed annuity incomes with Manulife to earn interest4 .
     
  • Critical Illness Advance Benefit: During the annuity income period, if the life insured is diagnosed with a critical illness, namely cancer, stroke or a heart attack, advances of future guaranteed annuity income as immediate cash will be offered to ease financial worries.  
     
  • Premium holiday: Customers may take a premium holiday for up to two years at any time after the second policy anniversary, during which all premium payments and guaranteed cash value will be frozen.
     
  • No medical examination is required, and no health questions need to be answered by customers who apply for the ManuLeisure plan.
     
  • Terminal bonus to support customers’ financial journey: Customers may be entitled to a terminal bonus5 in the event of policy termination, such as, the life insured passes away, is diagnosed with a critical illness, or customers choose to end the policy early. 
     
  • Life protection and extra benefit guards against accidental death: If the life insured passes away due to an accident in the first 5 policy years, an additional accidental death benefitwill be offered to their loved ones to help relieve the financial hardship they face. 
     

ManuLeisure Deferred Annuity Features:

Issue Age Age 18 - 60
Premium Payment Period 5/10 years
Annuity Start Age  Age 55/60/65/70
Annuity Income Period7 From annuity start age until age 85
Embedded Key Features
(i) Critical Illness Advance Benefit
(ii) Premium holiday
(iii) Accidental death benefit

For more details about ManuLeisure, please refer to the product brochure or visit www.manulife.com.hk.
 

Wilton Kee, Chief Product Officer for Individual Financial Products at Manulife Hong Kong, introduces the newly launched tax-deductible QDAP “ManuLeisure”. It helps customers enjoy tax concession benefits while offering a flexible and self-scheduled stream of retirement income.


About Manulife Hong Kong

Manulife Hong Kong, through Manulife International Holdings Limited, owns Manulife (International) Limited, Manulife Asset Management (Hong Kong) Limited and Manulife Provident Funds Trust Company Limited. As a member of the Manulife group of companies, Manulife Hong Kong offers a diverse range of protection and wealth products and services to individual and corporate customers in Hong Kong and Macau. 

About Manulife

Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the end of 2018, we had more than 34,000 employees, over 82,000 agents, and thousands of distribution partners, serving almost 28 million customers. As of June 30, 2019, we had over C$1.1 trillion (HK$6.8 trillion) in assets under management and administration, and in the previous 12 months we made C$29.4 billion in payments to our customers. Our principal operations in Asia, Canada and the United States are where we have served customers for more than 100 years. With our global headquarters in Toronto, Canada, we trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong. 


Notes:

  1. Assuming the insured is a non-smoker male aged 45. For further information about total projected IRRs and guaranteed IRRs for different plan options and factors affecting the IRRs, please refer to ManuLeisure’s product brochure.
     
  2. Survey conducted from May 23 to June 3, 2019, with 1,013 respondents aged 25-60 and based in Hong Kong.  
     
  3. The tax deductible limit is an aggregate for both qualifying deferred annuity premiums and MPF tax-deductible voluntary contributions.
     
  4. Dividends and the accumulation interest rates of dividends and guaranteed annuity income are not guaranteed and Manulife may change them from time to time.
      
  5. The amount of the terminal bonus is not guaranteed and is mainly affected by the performance of underlying investments, so the amount will fluctuate (positively and/or negatively) over time.
     
  6. The accidental death benefit is subject to specific circumstances. For further information about the entitlement, please refer to ManuLeisure’s product brochure.
      
  7. Annuity income period will be delayed if customers choose to take a premium holiday. For details, please refer to ManuLeisure’s product brochure.