Interview with Mr. Kevin Chor
With the advancement in medical technology and growing awareness of healthy living, life expectancy becomes longer. Many parents are not only planning for their own retirement, but also for their grown-up children. They hope that their children can have abundant cash flow in different life stages, such as getting married, raising children and even having a stable lifelong income for retirement.
Mr Kevin Chor, Chief Life Product & Proposition Officer of AXA Hong Kong, pointed out, “There are guaranteed income plans in the market which help build wealth through a 5-year or 10-year premium payment term. One of them will provide abundant and guaranteed cash flow during the first 20 policy years and an annual cash coupon will be paid thereafter until the insured age 100
However, many of us hesitate in purchasing an insurance plan. For the middle-aged, they are worried about the clumsy application procedures. And is it too late to start an insurance plan after age 50?
“Apart from guaranteed cash coupons, the guaranteed income plan also provides guaranteed cash value which will be paid when the policy is surrendered or matured. The plan will also provide annual dividends and terminal dividend after it has been effective for certain years. Although the dividends are not guaranteed, they bring potential return to increase the value of the policy. Depending on customers’ needs, they can also choose to leave the cash coupons and declared annual dividends to accumulate with interest or withdraw them as cash. This could be a stable and reliable form of investment for those who are too busy at work and concerned about depreciation of deposits,” said Kevin. “Besides, no medical examination or answering of health questions is required for application. Customers of different ages also find the plan flexible and easy to apply for.”
It is Chinese wisdom to save for the future and hence, most Hong Kong people share the same wisdom. Insurance plans which serve the purpose of “Saving and Protection” might become a future trend.
Remark: Claims on insurance products are subject to the terms and exclusions of the insurance policies.
‘Age 100’ refers to the policy anniversary on or immediately following the initial insured’s 100th birthday.