Graceful Life Deferred Annuity Plan II

 Enjoy monthly annuity until age 108

By paying just 5 years or 10 years of premiums, you can build a reserve for a steady monthly income stream upon retirement. According to your selected premium payment term and the issue age of the insured, the Plan will provide the annuitant (as the insured) with a monthly annuity income on the first business day of each policy month starting from the policy anniversary of which the insured reaches age 60, 70 or 80 until he/she reaches age 108, as long as the policy is in force.

 Monthly annuity for a fruitful retirement

The Plan’s monthly annuity income consists of 2 components:

• Guaranteed monthly annuity income – the amount is fixed during the annuity income period, giving stable returns for better retirement planning.


• Non-guaranteed monthly annuity income² – the amount is non-guaranteed which provides you with potential extra return to boost up your retirement reserve.

 Self-selected annuity payout option³ for matching your needs

You can opt to withdraw monthly annuity income (including the guaranteed monthly annuity income and non-guaranteed monthly annuity income² (if any)) immediately as cash payment to pay daily expenses. Alternatively, you can accumulate that in the policy to earn interest², and cash out accumulated monthly annuity incomes and interest² (if any) at anytime to suits your needs. If you would change the payout option of monthly annuity income, you can simply complete a dedicated form and no fee will be applied. If you did not choose any payout option before the commencement of monthly annuity income payment, we will pay monthly annuity income in cash.

 Maturity benefit to support your retirement needs

Upon policy maturity when the insured reaches age 108, the Plan will provide a maturity benefit, which is equivalent to accumulated guaranteed monthly annuity incomes and interest² (if any), plus accumulated non-guaranteed monthly annuity incomes² (if any) and interest² (if any), less all indebtedness (if any). The policy will be terminated after the maturity benefit is paid.

Internal rate of return

The range of the internal rate of return (“IRR”) of the Plan is subject to different factors, including but not limited to issue age, premium payment mode, policy currency, premium payment term and monthly annuity payment start age. On the basis of a non-smoking male insured, the table below shows the IRR upon policy maturity or the assumption that he passes away* unfortunately at the end of the 30th policy year since annuity income period starts, whichever is earlier.

The variation within the range of above IRR depends on the premium payment mode. The figures of above IRR are adjusted to 2 decimal places and are for reference purposes only, and it is assumed that

1. there is no partial surrender or any indebtedness throughout the benefit term;
2. all premiums are paid in full when due;
3. the insured chooses to receive all monthly annuity income paid as cash payment immediately; and
4. premium levy is not included.

 Tax benefits¹ on premium

The Plan is certified by the Insurance Authority as a qualifying deferred annuity policy. The maximum premium that can apply for tax deduction is up to HKD60,000 for an individual or HKD120,000 for a married couple provided that the husband and the wife are both taxpayers, and the deductions claimed by each taxpayer does not exceed the individual limit.

For details of tax deduction, please refer to clause 8 – “tax deduction” under “important information”.

 Life protection for your loved ones

Death benefit

In the unfortunate event that the insured passes away while the policy is in force, the beneficiary will receive a death benefit which is equivalent to:

1. The higher of:
   • 108% of the accumulated premiums due and paid after deducting the guaranteed monthly annuity income paid (if any) ; or
   • the guaranteed cash value at the date of death of the insured；
2. plus the accumulated guaranteed monthly annuity income and interest² (if any)；
3. plus the accumulated non-guaranteed monthly annuity income² (if any) and interest² (if any)；
4. plus non-guaranteed terminal dividend⁴ (if any)；and
5. less all indebtedness (if any).

Accidental death benefit payable under all policies in China Life (Overseas) per insured is subject to aggregate claim limits of HKD1,000,000/ USD125,000.

Accidental death benefit

While the policy is in force, prior to the insured reaching age 66 and within the first 10 policy years from the policy effective date, if the insured suffers an injury caused by an accident, and dies from such injury within 180 days (both dates inclusive) from the date of such occurrence, the Plan will pay an extra accidental death benefit which is equal to the lower of:

1. 100% of the accumulated premiums due and paid; or
2. 500,000 HKD/62,500 USD

Accidental death benefit payable under all policies in China Life (Overseas) per insured is subject to aggregate claim limits of HKD1,000,000/ USD125,000.

Death benefit and accidental death benefit settlement option

While the insured is alive, you can choose how the death benefit and accidental death benefit is to be paid, as long as the payment options of both benefits are the same. You can opt for settling the benefits in a lump sum or by annual instalments with a fixed amount over a fixed payment term of 10 or 20 years, helping you to safeguard your family’s financial future.

For the instalment option, the remaining balance of the death benefit and accidental death benefit (if applicable) will be accumulated in the policy to earn interest² until the end of the payment term. The interest rate will be determined by us from time to time, and the interest will be calculated on an annual basis and is non-guaranteed. The accumulated interest will be paid together with the last instalment of the death benefit. If the beneficiary dies during the settlement period of the death benefit and accidental death benefit (if applicable), we will pay the remaining balance of the death benefit and accidental death benefit (if applicable), with interest (if any) in a lump sum payment to the estate of the deceased beneficiary.

If the death benefit amount on the date of death of the insured is less than HKD400,000/USD50,000, or the policyholder has not indicated the way of receiving the benefit, the beneficiary will receive a lump sum.

 Extra protection for extra peace of mind

Premium waiver benefit for total and permanent accidental disability

While the policy is in force, if the insured suffers from total and permanent accidental disability⁵ diagnosed by a registered medical practitioner due to an accident for a continuous period of not less than 180 days from the date of diagnosis (both dates inclusive), we will waive you the premiums of the Plan from the first policy monthiversary after the date of diagnosis, helping you to release financial pressure.

24-hour worldwide emergency assistance service⁶

If the insured is diagnosed with an illness or is injured in an accident outside the country of residence, he or she will be able to access comprehensive coverage under the free 24-hour worldwide emergency assistance service.

 Simplified underwriting procedure

The Plan offers you simplified underwriting with no medical examination required which makes application easier and more convenient.