[Financial independence for later life] Immediate annuity for worry-free retirement and planned legacy.

As you enter the second half of life, many people have worked hard for years, and it is time to prepare for retirement. In the past, society believed in “raising children to support you in old age”, but today children are faced with mortgage pressure and rising living costs. Simply meeting their own household expenses is already challenging, and they may not have the capacity to cover their parents’ retirement costs. Therefore, those who are about to retire or have already retired hope to be self-sufficient, allowing their children to focus on developing their own careers and families, rather than worrying about their parents’ retirement living expenses.

“Self-funded retirement” is precisely the best choice for this age group. What is needed is a stable and reliable source of retirement income to ensure that the quality of life over the coming decades will not decline due to inflation. Sun Life’s latest RetireFree Immediate Annuity* and the optional benefit RetireFree Care¹ (collectively, the “RetireFree Immediate Annuity and Optional Benefit”¹) is designed for retirees who value financial independence, enabling everyone to enjoy a worry-free retirement with peace of mind.

Sun Life Hong KongRetireFree Immediate Annuity and Rider Benefits¹ is guided by the core principle and goal of “self-sufficiency”, and offers a comprehensive solution for retirees and those approaching retirement. It provides three key areas of protection: “money management” through monthly cash flow and accumulation planning, “health management” through innovative medical and critical illness cover, and “legacy management” through death and funeral benefits. In addition to providing financial security for every retiree, it also helps ensure that children do not bear an additional burden for their retirement life. When the insured passes away, a death benefit can also be paid, leaving something behind for the next generation.

1. A genuine annuity   monthly withdrawals with monthly interest accrual

RetireFree Immediate Annuity and Rider Benefits¹ provides a self-generated retirement income solution, with benefits paid from the month after policy issue, guaranteeing monthly annuity payments for life. If there is no immediate need for cash, the policyholder may also choose to credit each month’s annuity income into the “Daily Interest Account”² to earn interest at a non-guaranteed annual rate of 3.5%. As early as the market’s earliest point⁴, from year 3 onwards, up to 10% of terminal dividend³ may be locked in each year, and it may also be credited to the “Daily Interest Account”² to continue earning interest.

For those concerned about inflation eroding purchasing power, fixed annuities may not be reassuring for soon-to-retire individuals. RetireFree Immediate Annuity and Rider Benefits¹ specially offers a flexible withdrawal arrangement, allowing the policyholder to withdraw the amount accumulated in the “Daily Interest Account”² at any time. Assuming an annual inflation rate of 3%, the policyholder may withdraw an amount that increases by 3% per year, strengthening protection against inflation.

Under the Social Security Allowance Scheme, the asset limit for the Old Age Living Allowance does not take annuity premiums into account. Retirees may consider converting assets into an annuity. In addition to receiving stable monthly annuity income, they may also remain eligible for the Old Age Living Allowance, effectively receiving “double income” and easing the burden on their children, thereby securing their future through self-reliance.

2. “Sound” medical care   peace of mind for the whole family

Many people, after leaving work behind, begin their retirement life and should be enjoying relaxed and pleasant days. However, as age gradually increases, the risk of illness among the elderly also rises. Sun Life Hong Kong has also taken the healthcare needs of retirees into account, so RetireFree Immediate Annuity and Rider Benefits¹ offers three major long-term care protections. First, if an elderly policyholder is diagnosed with dementia or Parkinson’s disease before the age of 80, an additional 50% of the monthly guaranteed annuity will be paid for up to 10 years, enabling flexible allocation of funds for care services and easing the pressure on children acting as caregivers.

Another situation that worries the elderly is the heavy financial impact that critical illness and acute illness can bring to a family. Optional rider EnjoyCare Plus Rider¹ is innovative in its focus on specified critical illnesses and is a market first⁴. If the insured is diagnosed with stroke, cancer, heart disease, dementia, Parkinson’s disease, or partial loss of independent living ability, they may apply to lock in⁵ 50% of the then available cash value of the terminal dividend³. This may be done up to once per diagnosis and up to five times per policy, without reducing the monthly guaranteed annuity, allowing the elderly and their families to respond immediately without worrying about unexpected financial difficulties.

The plan also includes loss of capacity protection; if an elderly person is unfortunately unable to make a claim, a designated family member may make the claim on their behalf, which is sufficiently humane.

3. “Legacy for the future” to let wealth continue  

Life has different goals at different stages. RetireFree Immediate Annuity and Rider Benefits¹ not only enables retirees to achieve financial independence and enjoy their later years, but also aims to fulfil the goal of “legacy for the future”. Upon the insured’s death, the total annuities and death benefit received by the beneficiary will not be less than the basic premium paid by the insured. At the same time, the death benefit provided by EnjoyCare Plus as a rider¹ will also be offered, being either EnjoyCare Plus¹ nominal amount 100% or the face value of the terminal dividend, whichever is higher.

Life is unpredictable, and Sun Life Hong Kong also cares for every person’s final journey. This rider benefits¹ also includes the market-first⁴ Legacy Funeral Benefit, under which the beneficiary may reimburse the insured’s funeral expenses on an actual expense basis, up to 25% of the nominal amount of EnjoyCare Plus, with a maximum payout of US$62,500 per insured. If the insured unfortunately dies as a result of an accident before the age of 85, EnjoyCare Plus¹ will provide additional accidental death benefit. This one-off payment is equivalent to 50% of the rider benefits nominal amount.  

Kenneth (aged 60) is a senior executive who has been actively planning for life after retirement. Fully aware of the need for a steady income to meet future inflation challenges, he decided to take out 享悅即享年金 (sum insured: US$200,000) and 享悅添心附加保險¹ (sum insured: US$50,000).

From policy year 1 onwards, Kenneth’s guaranteed annual monthly annuity payment is US$11,004, equivalent to an average of US$917 per month. He also chooses to deposit the annuity payments into the Daily Interest Account², allowing his wealth to grow steadily. When he reaches the age of 71, i.e. in policy year 11, the annual locked-in terminal dividend³ cash value for that year is US$4,052; with the growth potential of the terminal dividend³, by policy year 18, the amount of the annual locked-in terminal dividend³ cash value is US$5,580, representing an increase of around 50% in that year’s retirement income.

As time passes, Kenneth passes away peacefully at the age of 85, bringing an end to a fulfilling life. During his lifetime, he received a total of US$355,777, enjoying a worry-free retirement. Even after his passing, Kenneth’s love does not end — Sun Life leaves a legacy amount of US$128,252 for his loved ones (i.e. the remaining terminal dividend³ face value), and also reimburses final expenses of up to US$12,500 on an actual expense basis, so that his family can continue to feel his care and protection right to the very end⁵. 

Retirement is no longer an individual matter; it is something that families should decide and plan for well in advance. Want to enjoy a “golden” retirement without worries? If you are interested in Sun Life 永明享悅即享年金保險及享悅添心附加保險, you can enjoy up to 1.5% premium discount during the promotion period. You can click here to learn more.

Note:
¹ This optional add-on benefit can only be applied for at the same time as the basic plan. Please note that Enjoy Delight Plus cannot be purchased on its own or added later.
² The accumulation rate of the Daily Interest Account is not guaranteed and is determined solely by Sun Life Hong Kong Limited (“Sun Life Hong Kong”) and may change from time to time. Up to 31 October 2025, the current rate of the Daily Interest Account is 3.5% per annum.
³ Terminal dividend is non-guaranteed and is subject to the rules as determined by Sun Life Hong Kong from time to time. The terminal dividend may change according to the performance of several experience factors, with investment return generally regarded as the principal determining factor. Other factors include, but are not limited to, claims experience, policy expenses, taxation and policyholder persistency rate. The cash value of the terminal dividend may not be equal to its face value. The terminal dividend may differ each time the relevant dividend is declared in the future, and the actual amount paid will also vary. For details of the dividend, please refer to the Dividend Philosophy section under Important Information and the Sun Life Hong Kong website (www.sunlife.com.hk).​
⁴ The “market first” description of this product feature is based on a comparison, as at 22 August 2025, of immediate annuity plans for new policies offered by insurers carrying on both general business and long-term business, as listed on the Register of Authorized Insurers maintained by the Insurance Authority.
⁵ Applications to exercise the terminal dividend lock-in option must be submitted within 30 days before the policy anniversary date, and can only be exercised once in each policy year. Once your application has been approved, it cannot be withdrawn or amended. After exercising this option, any locked-in terminal dividend amount will be deducted when calculating the death benefit under Enjoy Delight Plus.​

* The Enjoy Delight Immediate Annuity Insurance Plan and the offer are subject to terms and conditions. For details of the product features and risks, please refer to the product brochure and leaflet, or contact your financial adviser.

This advertising material is sponsored and provided by Sun Life Hong Kong and is for general reference only. The product information above does not constitute the full policy terms and is subject to the terms and conditions of the relevant plan. For details of the product features, benefits, full terms, exclusions and key product risks, please refer to the Sun Life Hong Kong website, the relevant product brochure and the policy provisions. Any promotional offers or advertising materials should be read in conjunction with the relevant product brochure. Customers must successfully pass a financial needs analysis to determine whether the recommended insurance product meets their insurance needs.

Last updated: 21 November 2025. 

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.