Hong Kong: FTLife Launches Built-in Policy Reverse Mortgage Function with Tailored Death Benefit Options - On Your Mind Insurance Plan

| 14 Sep 2020

FTLife CEO Gerard Yang (left) pictured with Chief Commercial Officer and Chief Product Officer Christine Yeung

FTLife Insurance Company Limited has announced the launch of On Your Mind Insurance Plan (On Your Mind). According to the company statement, it is "a comprehensive life protection policy boasting three first-in-market features in the form of a built-in policy reverse mortgage function, along with several new tailored death benefit options".

On Your Mind’s flexible built-in policy reverse mortgage function allows customers to withdraw their death benefit as an annuity to support their retirement needs. The plan also offers a lump-sum payment for policyholders for death benefit and additional death benefit (if any) in the event of an advance diagnosis of severe dementia. It also offers prearrangement of specific death benefit settlement options tailored for different beneficiaries.

FTLife Chief Commercial Officer and Chief Product Officer Christine Yeung said: “On Your Mind is the first new product since we announced our new brand commitment ‘Embrace Change for Better Future’ in late August. Diversified products with flexibility are highly sought after today. The new product fills the current market gap by making a breakthrough in traditional life insurance to meet the needs of customers at various life stages. It allows customers to provide their families with protection when they are young and focusing on career. Then, upon retirement, they can withdraw their insurance protection funds in advance as an annuity and enjoy a quality lifestyle. This is life protection that takes care of your needs before and after retirement.”

Flexible built-in policy reverse mortgage taps death benefit as an annuity

Customers can choose to withdraw their death benefit as an annuity in advance for retirement needs – as a fixed amount with designated annuity periods and annuity payment modes of their own choice. They can also suspend the annuity or resume such payments after suspension during the annuity period. Withdrawing the insurance protection amount as an annuity has no impact on the sum insured. Reversionary bonuses (if any) will continue to grow in the policy. The plan allows customers to prepay the loan ahead of time if their financial positions allow, providing them with greater flexibility.

Severe dementia benefit supports customers in times of adversity

Hong Kong’s ageing population is an ever-more pressing issue; with it comes an increasing number of dementia cases. One in ten seniors over 70 years of age in the city suffers from dementia. That rises to one-third for those over 85 years of age. The disease is increasingly being seen in younger people. On Your Mind addresses the issue by providing customers with protection. Should policyholders be diagnosed with severe dementia, they will receive the full amount of death benefit as a lump sum and extra death benefit (if any), thereby relieving their financial stress.

Flexible death benefit settlement options tailored for individual family members

Customers can choose in advance different and flexible ways to pass on the death benefit to beneficiaries – a lump sum payment or instalment payments in the unfortunate event of the insured’s death. This enables customers to have peace of mind from being able to care for the future of their loved ones when they are no longer around.

More benefits of On Your Mind:

Two plan versions to suit customers’ specific needs: With a focus on retirement savings, the ‘Supreme Version’ is tailored for customers who value a return on savings. This enables them to take care of their own protection and achieve an investment return at the same time. With lower premium levels, the ‘Smart Version’ is suitable for young people and families.

Terminal illness: In the unfortunate event of the insured being diagnosed with a terminal illness, the policyholder will be paid the full amount of death benefit in lump sum and extra death benefit (if any).

Extra death benefit: In the event of the insured passing away in the first 20 policy years, or is diagnosed with severe dementia or terminal illness, the policyholder will be provided with an extra death benefit equivalent of up to 50% of the sum insured.

Extra accidental death benefit: If the insured passes away as a result of an accident, within 180 days of the accident and in the first 20 policy years before attaining the age of 81, the plan will provide an extra accidental death benefit equivalent of up to 50% of the sum insured.

Lifestage Protection Booster: Customers can enroll in an additional designated whole life or term life insurance plan upon the occurrence of one of three life stage events – purchase of property, marriage or childbirth before a designated age – to upgrade his/her protection, without submission of further health information. This option can be exercised only once for each Insured under all policies of the On Your Mind Insurance Plan.

Insurability privilege: Customers can choose to fully convert the extra death benefit and enroll in a designated new whole life or term life insurance plan within designated policy years to maintain the life protection coverage.

Waiver of premium benefit/payor benefit: To give customers’ loved ones total peace of mind, FTLife will pay the future premiums of the basic plan up to USD 100,000 under designated circumstances. It helps maintain the protection of the insured.

FTLife Chief Executive Officer Gerard Yang said: “In spite of the challenges brought by the pandemic, FTLife has accelerated its pace of innovation and launched revolutionary products in view of the strong demand for protection from the Hong Kong citizens. FTLife recorded a 40% year-on-year increase in annual premium equivalent (APE) for its local business from May to July, when the city was hit hard by the pandemic.”

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