Compare QDAP (Hedge Longevity Risk)

QDAP Quick Guide

Objective : Hedge Longevity Risk

Issue Age : 45

Premium Term : 10 Years

Annuity Start Age : 60

Income Term : Any

Insurer

USD

We found 4 QDAP product(s) matching your selected filters.
Assumptions
BOC Life | 中銀人壽
BOC Life Deferred Annuity (Lifetime)
10-year Premium
Age 60 Start
Whole life Annuity
9.4
/ 10
10Life Score
Guaranteed Initial Annual Income
USD
6,012
Guaranteed Return Ratio at Age 85
128.2%
Projected Return Ratio at Age 85
211.0%
Guaranteed Annuity Breakeven Year
10
Sun Life | Sun Life 永明
Foresight Deferred Annuity Plan
10-year Premium
Age 60 Start
40-year Annuity
8.9
/ 10
10Life Score
Guaranteed Initial Annual Income
USD
6,524
Guaranteed Return Ratio at Age 85
136.4%
Projected Return Ratio at Age 85
187.3%
Guaranteed Annuity Breakeven Year
11
China Pacific Life | 中國太平洋人壽保險
Aging with Grace Deferred Annuity Plan (Lifetime)
10-year Premium
Age 60 Start
60-year Annuity
8.9
/ 10
10Life Score
Guaranteed Initial Annual Income
USD
11,913
Guaranteed Return Ratio at Age 85
122.8%
Projected Return Ratio at Age 85
201.3%
Guaranteed Annuity Breakeven Year
11
China Life | 中國人壽
Graceful Life Deferred Annuity Plan II
10-year Premium
Age 60 Start
48-year Annuity
7.5
/ 10
10Life Score
Guaranteed Initial Annual Income
USD
4,535
Guaranteed Return Ratio at Age 85
94.3%
Projected Return Ratio at Age 85
188.7%
Guaranteed Annuity Breakeven Year
11
BOC Life | 中銀人壽
BOC Life Deferred Annuity (Lifetime)
10-year Premium
Age 60 Start
Whole life Annuity
10Life Score
9.4
/ 10
Guaranteed Initial Annual Income
USD 6,012
Guaranteed Return Ratio at Age 85
128.2%
Projected Return Ratio at Age 85
211.0%
Guaranteed Annuity Breakeven Year
10
Sun Life | Sun Life 永明
Foresight Deferred Annuity Plan
10-year Premium
Age 60 Start
40-year Annuity
10Life Score
8.9
/ 10
Guaranteed Initial Annual Income
USD 6,524
Guaranteed Return Ratio at Age 85
136.4%
Projected Return Ratio at Age 85
187.3%
Guaranteed Annuity Breakeven Year
11
China Pacific Life | 中國太平洋人壽保險
Aging with Grace Deferred Annuity Plan (Lifetime)
10-year Premium
Age 60 Start
60-year Annuity
10Life Score
8.9
/ 10
Guaranteed Initial Annual Income
USD 11,913
Guaranteed Return Ratio at Age 85
122.8%
Projected Return Ratio at Age 85
201.3%
Guaranteed Annuity Breakeven Year
11
China Life | 中國人壽
Graceful Life Deferred Annuity Plan II
10-year Premium
Age 60 Start
48-year Annuity
10Life Score
7.5
/ 10
Guaranteed Initial Annual Income
USD 4,535
Guaranteed Return Ratio at Age 85
94.3%
Projected Return Ratio at Age 85
188.7%
Guaranteed Annuity Breakeven Year
11
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QDAP Quick Guide

What is QDAP?
Tax deductible
Suitable for retirement planning
Government certified

Policyholders of Qualifying Deferred Annuity Policy (QDAP) will not only enjoy a stable income during the annuity period, but also tax benefits of up to HKD60,000 per assessment year.

QDAP vs Deferred Annuity
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Tax deductible
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Payment period
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Age
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Certified by the Insurance Authority
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QDAP
Yes
Minimum 5 years
Annuity income commences from age 50
Yes
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Deferred Annuity
No
Different choices
No limitation
No
QDAP Glossary

Tax deductible

Upto HKD60,000 premiums paid to a QDAP policy is eligible for tax deduction. Based on a marginal tax rate of 17%, the maximum tax deduction is HKD10,200. The actual amount depends on individual circumstances.
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Surrender Value

QDAP is a long-term insurance product, which spans across many years from making premium payments to receiving annuity income. One may surrender for cash value during the policy term but the value may be much lower than the premiums paid if surrendering in early years.
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Death Benefit

Should the insured dies, the policyholder will receive a guaranteed death benefit after deducting the annuity income received.
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Who should consider QDAP?
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Those planning for Retirement
Those savings for retirement may select QDAP (retirement) which will start paying an income at retirement age for 10 to 20 years
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Longevity risk
Living too long is a risk that cannot be overlooked as living expenses continue to rise without a sustainable income. Some deferred annuity products provide lifetime income, which may help to alleviate longevity risk
Frequently Ask Questions
What are the factors to look out for in choosing QDAP?

You should first understand whether the policy structures including premium payment period, accumulation period and annuity income period suit your needs. Then you can compare the guaranteed and projected returns of different products, and be aware of the early surrender values.

Is the non-guaranteed return of QDAP reliable?

The Insurance Authority requires insurance companies to disclose the fulfillment ratio of participating insurance (including annuity) against the projected amount in the proposal illustrations. If the fulfillment ratio is 100%, it means that the insurer has achieved its projected non-guaranteed return.

What is the maximum tax deduction of QDAP?

Up to HKD60,000 annual premium paid to a QDAP policy is eligible for a tax deduction. Based on a marginal tax rate of 17%, the maximum tax deduction is HKD10,200 per policy per year. The actual tax savings would depend on individual circumstances. 

How to choose QDAP?

10Life has categorised QDAP into 3 groups based on of different target segments:  savings, retirement and longevity.  We evaluate and rate the products based on a set of criteria including guarantee return, projected return and surrender value, etc.

Cross_Selling_Banner_Best_Insurer
Cross_Selling_Banner_Best_Insurer
How to choose QDAP?

10Life has categorised QDAP into 3 groups based on of different target segments:  savings, retirement and longevity.  We evaluate and rate the products based on a set of criteria including guarantee return, projected return and surrender value, etc.