QDAP Longevity
5 Star Products

To encourage tax payers to plan and save for their retirement, the government introduced the Qualifying Deferred Annuity Policy (“QDAP”) in 2019. If a deferred annuity product satisfies the Insurance Authority (“IA”)’s criteria on premium, payment period, annuity income period, disclosures, etc., the insurer may register the product as a QDAP. The policyholders of QDAP can enjoy tax deductions on the premium.

The product certification by the IA increases public awareness and understanding on deferred annuities. However, given the complexity of deferred annuity products involving different time periods and amounts on premium payment, accumulation and annuity income, it is still difficult for consumers to compare the products in the market by themselves.

ence 10Life has collected data on many deferred annuity products in the market. Our actuaries have compared the guaranteed return, projected return, longevity coverage, early surrender coverage and early death coverage of the products, with the assumption that the policyholder is a male at age 45, paying premium for 10 years (or closest), and would start receiving annuity income at age 65. To help consumers decode the products, 10Life rates products designed for retirement according to the market benchmark, with the best in class awarded as “5 Star Product”.

USD - QDAP (Longevity)
In alphabetical order by company name
USD - QDAP (Longevity)
In alphabetical order by company name
BOC Life
BOC Life Deferred Annuity (Lifetime)
Chubb FlexiLiving Deferred Annuity Plan
Sun Life
Foresight Deferred Annuity Plan
How we rate QDAP products
As deferred annuity is a long-term product for retirement protection, 10Life values guaranteed return more than projected return, as the latter consists non-guaranteed portions that brings uncertainty on retirement income. By comparing the Present Value (PV) of the total premium to be paid and the total income receivable, we can compare the long term returns of the products. We also consider longevity coverage, early surrender coverage and early death coverage in the 10Life Ratings to decode annuity products in different dimensions.
Guaranteed Return (60%)
Projected Return (10%)
Longevity Coverage (15%)
Early Surrender Coverage (10%)
Early Death Coverage (5%)
What are the Insurance Authority (IA)’s criteria on QDAP?

  • Minimum total premiums 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 Internal Rate of Return (IRR) of the product to allow evaluation and comparison
  • Clear presentation of the guaranteed and non-guaranteed annuity payouts
  • Clear separation of premiums of all riders (e.g. critical illness, hospitalisation cash, etc.) from the QDAP premiums

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 payable tax per year from buying QDAP.

What should I consider when choosing a deferred annuity?

An annuity product aims to protect the retirement life of the insured in the financial aspect. As you age your risk tolerance generally decreases, hence you shall focus on the guaranteed return and the longevity coverage of the annuity product. Some annuity products present attractive projected returns, but the non-guaranteed part is dependent on multiple factors including the market environment, investment performance, dividend policy, etc. and your retirement plans could be seriously affected if the non-guaranteed income is not as expected.

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.

  1. The information on 10Life is intended for general education purpose and reference only, and does not constitute any insurance, financial, investment or other professional purchase advice or solicitation to buy insurance, financial or investment products. 10Life Product Ratings and Scores are mathematical calculations based on public product information and assumptions for generic customer segments. The Product Ratings and Scores DO NOT reflect YOUR personal needs. 10Life hereby excludes any liability arising from using the information and will not make warranty or guarantee on the accuracy, completeness and timeliness of the information or for any claims and / or losses caused thereby. You should seek independent professional advice and review the insurance product information carefully before purchasing any insurance products. The information shown in the communications placed on 10Life does not constitute an offer or solicitation for the purchase or sale of any banking or insurance products or services.
  2. 10Life Insurance Product Ratings are based on facts and data, and are not be influenced by any partnerships with insurance companies.
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