Hong Kong: First-ever impaired annuity product introduced

30 May 2017

MetLife Hong Kong has launched an optional rider which protects customers from the persisting consequences of designated critical illnesses. It is the first impaired annuity product in the market that continuously provides annuity payouts even if the insured person recovers subsequently.

This optional rider, the MetLife Healthcare Companion Critical Illness Annuity, provides a steady stream of guaranteed annuity payouts up to age 100, beginning upon diagnosis of any of the covered critical illnesses such as stroke, kidney failure, advanced dementia, etc. The number of people suffering from critical illnesses such as stroke and kidney failure is increasing, and these diseases affect more than just the older generation.

These common critical illnesses have a relatively high survival rate, but could cause irreversible impacts, including impaired physical functions, loss of independence, and loss of capacity to work -- causing burdens for long-term care and finances. Because of advancements in medical technology, many patients with critical illnesses are living longer than ever, which means that long-term care expenses are also required for a longer period.

“Typical critical illness insurance products provide a lump sum payment for immediate or one-off financial support for treatment. But because of the increasing incidence of certain critical illnesses that cause lifelong impacts and increased costs for long-term care, we have gone beyond the typical critical illness insurance in developing MetLife Healthcare Companion Critical Illness Annuity. This product is crafted to provide a stream of guaranteed annuity to customers, supporting them along their whole journey as they cope with the regular expenses necessitated by a covered critical illness,” said Mr. Hamilton Yuen, Head of Product Development at MetLife Hong Kong.

This optional rider is designed to provide a steady stream of guaranteed protection to fit customers' personal needs at an affordable cost. Customers can enjoy a number of benefits during the coverage period, including:

  • Steady stream of guaranteed annuity payouts for long-term care expenses and income supplement until the optional rider terminates. Two options of coverage periods are available -- customers may choose to receive the guaranteed annuity payouts till age 85 or age 100.
  • Affordable premium that will not increase with the customer's age during the coverage period
  • Waiver of premium upon confirmed diagnosis of any of the covered critical illnesses

In addition to the annuity payouts offered upon diagnosis of any of the covered illnesses, the optional rider also provides a Cancer Benefit option as an extra line of defense against cancer. Upon confirmed diagnosis of cancer, the customer will receive a one-time lump sum payment which equals to 24 times the sum assured. In the event of a cancer diagnosis, the optional rider remains in force to provide protection as long as premiums continue to be paid.