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QDAP (Savings)

Qualifying Deferred Annuity Policy (QDAP) satisfies the Insurance Authority (IA)’s criteria on deferred annuity products. The policyholder of QDAP can enjoy tax deductions on the premium up to a limit of HK$60,000 deductible per year. Both the product break-even year and the rate of return can be enhanced if tax savings are considered, particularly for policyholders with high marginal tax rates. 10Life rates the products based on mainly the returns, assuming the policyholder starts paying premium at age 35 or age 45.
We found QDAP (Savings) product(s) matching your selected filters.
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New
Well Link Life | 立橋人壽
Well Enjoy Deferred Annuity 2
Product Details
5-year PremiumAge 50 Start10-year Annuity
9.8/10
3.0%
3.0%
8
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Quote Now
China Pacific Life | 中國太平洋人壽保險
Live Better Deferred Annuity Plan (Fixed Term)
Product Details
5-year PremiumAge 50 Start10-year Annuity
9.8/10
2.9%
2.9%
8
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
BOC Life | 中銀人壽
BOC Life Deferred Annuity (Fixed Term)
Product Details
5-year PremiumAge 50 Start10-year Annuity
9.5/10
2.2%
2.2%
8
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Hang Seng Insurance | 恒生保險
eIncomePro Deferred Annuity Plan (100% Guaranteed)
Product Details
5-year PremiumAge 50 Start10-year Annuity
9.4/10
2.0%
2.0%
8
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
New
Well Link Life | 立橋人壽
Well Enjoy Deferred Annuity 2
Product Details
5-year PremiumAge 50 Start20-year Annuity
9.1/10
1.7%
1.7%
8
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Quote Now
FWD | 富衛
RetireFun Deferred Annuity Plan
Product Details
5-year PremiumAge 50 Start10-year Annuity
8.8/10
0.6%
2.1%
9
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Chubb | 安達人壽
Chubb FlexiLiving Deferred Annuity Plan
Product Details
5-year PremiumAge 50 Start50-year Annuity
8.2/10
0.7%
2.3%
13
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Prudential | 保誠保險
PRURetirement Deferred Annuity
Product Details
5-year PremiumAge 50 Start20-year Annuity
8.2/10
0.4%
2.4%
13
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year
Hang Seng Insurance | 恒生保險
FortuneLife Deferred Annuity Life Insurance Plan
Product Details
5-year PremiumAge 50 Start20-year Annuity
7.9/10
-0.2%
1.8%
16
10Life Rating
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year

QDAP (Savings)

We found QDAP (Savings) product(s) matching your selected filters.
New
Well Link Life | 立橋人壽
Well Enjoy Deferred Annuity 2
5-year PremiumAge 50 Start10-year Annuity
10Life Rating :
9.8/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
3.0%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
3.0%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
8
Quote Now
China Pacific Life | 中國太平洋人壽保險
Live Better Deferred Annuity Plan (Fixed Term)
5-year PremiumAge 50 Start10-year Annuity
10Life Rating :
9.8/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
2.9%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.9%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
8
BOC Life | 中銀人壽
BOC Life Deferred Annuity (Fixed Term)
5-year PremiumAge 50 Start10-year Annuity
10Life Rating :
9.5/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
2.2%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.2%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
8
Hang Seng Insurance | 恒生保險
eIncomePro Deferred Annuity Plan (100% Guaranteed)
5-year PremiumAge 50 Start10-year Annuity
10Life Rating :
9.4/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
2.0%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.0%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
8
New
Well Link Life | 立橋人壽
Well Enjoy Deferred Annuity 2
5-year PremiumAge 50 Start20-year Annuity
10Life Rating :
9.1/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
1.7%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
1.7%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
8
Quote Now
FWD | 富衛
RetireFun Deferred Annuity Plan
5-year PremiumAge 50 Start10-year Annuity
10Life Rating :
8.8/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
0.6%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.1%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
9
Chubb | 安達人壽
Chubb FlexiLiving Deferred Annuity Plan
5-year PremiumAge 50 Start50-year Annuity
10Life Rating :
8.2/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
0.7%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.3%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
13
Prudential | 保誠保險
PRURetirement Deferred Annuity
5-year PremiumAge 50 Start20-year Annuity
10Life Rating :
8.2/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
0.4%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
2.4%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
13
Hang Seng Insurance | 恒生保險
FortuneLife Deferred Annuity Life Insurance Plan
5-year PremiumAge 50 Start20-year Annuity
10Life Rating :
7.9/10
Overall Savings Annuity Score is based on the guaranteed return, projected return and early surrender coverage. Details
Age 60 Guaranteed IRR :
-0.2%
Guaranteed Internal Rate of Return surrendering at age 60
Age 60 Projected IRR :
1.8%
Projected Internal Rate of Return surrendering at age 60
Guaranteed Breakeven Year :
16

Further Readings

Retirement Planning Made Easy - 5 Steps to Compare QDAP from AIA, Manulife and Prudential
01/03/2022
10Life Team
QDAP
Annuity
QDAP Comparison for Retirement Income during your Golden Age
24/06/2021
10Life Team
QDAP
Annuity
Retirement Planning with QDAP (Comparing QDAP products of multi-national insurers)
15/03/2022
10Life Team
QDAP
Annuity
Market Comparison on QDAP Tax Savings Returns on Aug 2020 (Chinese Article)
22/02/2022
10Life Team
QDAP
Annuity

QDAP (Savings) Frequently Asked Questions

What are the Insurance Authority (IA)’s criteria on QDAP?
  • Minimum total premium of HK$180,000 and minimum premium payment period of 5 years
  • Minimum annuity period of 10 years
  • Annuity income to start at the age of 50 or above
  • Disclosure of minimum to maximum Internal Rate of Return (IRR) of the product
  • Clear presentation of the guaranteed and non-guaranteed annuity payment
  • Clear separation of premium of all riders (e.g. critical illness, hospitalisation cash, etc.) from the QDAP premium

You may find the full details from GL19: Guideline on Qualifying Deferred Annuity Policy issued by IA.
How much is the tax saving?
Premium paid for QDAP is tax deductible up to a limit of HK$60,000 per year. The actual tax amount saved would depend on your marginal tax rate. For example, based on the prevailing highest tax rate of 17%, you may save up to $10,200 tax payable per year from buying QDAP.
What should I consider when choosing QDAP?
When choosing QDAP, policyholders can compare products in the five steps proposed by the Insurance Authority*:
  • Understand the policy structure
  • Assess your personal needs
  • Compare internal rates of return
  • Look at the fulfillment ratio
  • Pay attention to the surrender value
10Life also published an article (in Chinese only) earlier to illustrate how to apply the QDAP comparison method above. You can click here to browse the article.
*For further details, please visit the Insurance Authority website.
Would the Inland Revenue Department (IRD) recover my tax deductions if I surrender my QDAP early?
Under current arrangements, early surrender of policy would not make the tax deductions recoverable by the IRD. However, if you cancel the policy during the cooling-off period and have your paid premium refunded, you would need to pay back any tax deductions made. For further details regarding tax deductions, please visit the IRD website.
What are guaranteed and projected internal rates of return? What is the difference between the two?

QDAP will accumulate the policyholder’s savings and convert into a stable income in the future. 10Life compares the returns of annuity products using Internal Rate of Return (IRR). Simply put, IRR can be understood as the annualised rate of return on investment.

According to the Insurance Authority, all QDAP product brochures must use a 45-year-old non-smoking male policyholder as an example to disclose the product IRRs. In addition, consumers can refer to the product brochure to understand the IRRs of the product under different payment periods, annuity start age and income periods.

IRRs can be guaranteed or projected. The guaranteed IRR is the return contractually guaranteed by the insurance company to the policyholder, while the projected IRR includes guaranteed and non-guaranteed returns. Non-guaranteed returns are affected by multiple factors such as the insurance company’s investment performance, profit sharing policy and the general economic environment, hence it is difficult to predict.

What is the shortest breakeven year of QDAP?
QDAP is a long-term insurance product. Consumers need to understand their ability to continue paying premium. As deferred annuities do not provide high liquidity especially in the early stage of the policy, policyholders should have other liquid funds to meet sudden needs. If the policyholder surrenders the policy early, the amount received may not cover the premium paid. The shortest guaranteed breakeven year of QDAP products currently in the market is 8 years.
What is fulfillment ratio?
The Insurance Authority requires insurance companies to disclose fulfillment ratios of products with non-guaranteed payouts. A fulfillment ratio of 100% means the insurance company has achieved its projected non-guaranteed payout. However, as QDAP products were first launched in 2019, it would take awhile till the first fulfillment ratios can be published.
Is the 10Life scoring methodology reliable?
10Life’s scoring methodology is open and transparent. It considers factors important to consumers. You can refer to the scoring methodology to understand the assumptions and considerations behind the scoring. The ratings and scores are for reference only, and do not constitute sales recommendations. Before purchasing products, you should understand your personal needs and analyse whether QDAP is suitable for you.
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Remarks:

  1. Any premium displayed excludes insurance levy collected by the Hong Kong Insurance Authority.
  2. 10Life Product Comparison and 10Life Insurance Ratings are operated by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies.
  3. Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claims and losses arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information.

If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10Life.com.

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