Compare QDAP (Hedge Longevity Risk)

No. Only eligible premiums paid under a qualifying deferred annuity policy (QDAP) that meets the Insurance Authority’s specified requirements qualify for a tax deduction. QDAP is one of Hong Kong’s three key tax-saving options. It must meet requirements including a premium payment term of at least 5 years and an annuity payout period of at least 10 years, with payments starting when the annuitant is aged 50 or above. 

QDAP premiums and MPF tax-deductible voluntary contributions (TVC) share a deduction limit of HK$60,000 per person per year. A simple estimate using a 17% marginal tax rate gives maximum tax savings of HK$10,200. To learn more, see our guide to Hong Kong’s three key tax-saving options and related tax benefits.

For example, suppose you earn HK$900,000 in the 2026/27 year of assessment, are single and receive only the basic allowance of HK$145,000, excluding mandatory MPF contributions, other deductions and tax reductions:

• Before deducting annuity premiums: estimated salaries tax of HK$110,350
• After deducting HK$60,000 in qualifying annuity premiums: estimated salaries tax of HK$100,150
• Annual tax savings: HK$10,200

This is a simplified illustration. Actual tax savings depend on your tax position. For details, see the Inland Revenue Department’s tax calculator or consult a professional tax advisor. 

When you apply for designated QDAPs through 10Life, you may enjoy premium discounts or rebates, subject to the relevant terms. New customers can also receive a HK$300 welcome gift voucher^. Alternatively, apply with friends or family for gift vouchers worth up to HK$500 per person*. These offers cannot be combined and are subject to the relevant terms and conditions. 

^10Life QDAP Welcome Reward Terms and Conditions
*10Life QDAP Buddy Reward Terms and Conditions

Non-guaranteed returns typically include dividend, with actual amounts depending on the insurer’s investment performance and dividend sharing policy. You can refer to an insurer’s dividend fulfilment ratios to understand its past non-guaranteed benefit payouts. However, past performance does not guarantee future returns, so you should also consider guaranteed returns when choosing a product. 

The main advantages of QDAPs are tax benefits, regular retirement income and clearly disclosed returns. However, they also have the following limitations:

• Limited liquidity: QDAPs are long-term insurance products. If you surrender early, you may not recover all the premiums you have paid.
• Tax benefits vary: Actual tax savings depend on your income and applicable tax rate. QDAPs are generally more attractive to people in higher marginal tax brackets.
• Returns differ across products: Even among QDAPs, guaranteed and projected total IRRs vary, so compare them carefully.

Is a QDAP worth buying? QDAPs must disclose guaranteed and non-guaranteed annuity amounts and the related IRRs, making returns easier to compare. Taking actual tax benefits into account may increase the overall effective IRR and help you plan ahead for retirement.

Whether a QDAP is worth buying depends on your income, tax benefits, retirement goals, affordability and liquidity needs. You should not buy one solely to save tax. 

A 5-year term lets you finish paying premiums sooner, but annual premiums are usually higher. A 10-year term spreads the payments over a longer period and may suit those who want to build retirement savings gradually. Compare guaranteed and projected returns across payment terms, and choose based on your income and retirement goals. 

Annuities mainly fall into two categories: deferred annuities and immediate annuities. The three options below mainly differ in their tax benefits, premium payment arrangements and annuity payout periods:

• QDAPs: Qualifying deferred annuities with tax-deductible premiums. They generally suit working people with a stable income who are in a higher tax bracket and want to plan ahead for retirement.
• Other annuities: These may be deferred or immediate annuities and do not necessarily offer tax benefits. They may suit people who want to arrange retirement income around their individual needs.
• HKMC Annuity Plan: An immediate annuity that mainly provides lifelong income for eligible Hong Kong residents aged 65 or above. It may suit people who want to turn retirement savings into steady cash flow.

Which is right for me? If you are working, have a higher income and want to make use of tax benefits, consider a QDAP. If you have reached retirement age and want lifelong, steady income, compare the HKMC Annuity Plan. Your final choice should reflect your income, retirement age and liquidity needs. 

QDAPs mainly provide regular retirement income and tax deductions on eligible premiums. Savings insurance focuses more on asset accumulation, with some products offering more flexible withdrawal and wealth transfer arrangements. Consider a QDAP if you want to build retirement cash flow. If you prioritise long-term asset growth and flexibility in using your funds, compare savings insurance products. 

A QDAP’s internal rate of return (IRR) varies with the age at application, premium payment term, annuity payout arrangements, and guaranteed and non-guaranteed benefits. Tax benefits depend on your assessable income and applicable tax rate. Compare guaranteed and projected annuity amounts and IRRs using the same assumptions, such as the premium payment term and annuity payout period. 

Breakeven periods vary across QDAPs, and the plan that breaks even fastest may not offer the highest overall returns. Use 10Life’s QDAP comparison tool and sort by the shortest breakeven period to quickly compare products.

The breakeven period helps you understand when you may recover your money, but QDAPs are mainly designed for retirement savings and regular retirement cash flow. Consider long-term returns, annuity payout arrangements and your retirement needs as well as the speed of breaking even.

To learn more about breakeven periods and returns across products, see our 2026 QDAP breakeven period and return comparison or speak to a 10Life licensed insurance advisor.

A QDAP application generally requires proof of identity, personal details and a Financial Needs Analysis (FNA) to assess whether the product suits your financial needs and ability to pay premiums. Actual document requirements depend on the insurer.

Want to know more about the application process? Apply through 10Life’s online application platform and follow the instructions. For professional advice, speak to a 10Life licensed insurance advisor.