China Life Retirement / Annuity Plans

China Life offers a range of 3 different retirement plans. In this article, we will be collating and summarising each product in each category.

China Life Lifetime Income Plan

The China Life Lifetime Income Plan, as the name suggests, is an annuity that offers lifetime cash benefits to the insured life. This income is split into 2 sections – guaranteed and non-guaranteed income.

The guaranteed portion will provide you with 0.8% of your sum insured a year, while the non-guaranteed portion will provide you with up to 5.4% of your sum insured yearly.

With this retirement plan, you can decide to reinvest your yearly income at the non-guaranteed rate.

Additionally, you enjoy a guaranteed capital return – contingent on meeting a few requirements depending on your premium payment term. The plan offers a wide range of premium payment term from which you can choose – 3, 5, 10, 15, 20, and 25 years.

With the China Life Lifetime Income Plan, you can accumulate your investments from a minimum of 0 years to a maximum of 40 years. After the minimum accumulation period, you may start receiving your yearly income.

The plan also covers terminal illness and premature death of the higher of 108% of your total annual premiums or your guaranteed account value, together with any guaranteed and non-guaranteed income.

There are 3 riders you can choose from to complement your basic plan – China Life Enhanced Payer Benefit Rider, China Life Payer Benefit Rider, and China Life Premium Waiver Rider.

Features:

• Choose from 6 premium payment terms – 3, 5, 10, 15, 20, or 25 years
• Start receiving payouts after the premium payment term
• You may choose to accumulate your investments between 0 and 40 years
• 0.8% guaranteed yearly income
• Up to 5.4% non-guaranteed yearly income
• Option to reinvest at the non-guaranteed rate
• Capital guaranteed if you meet the requirements
• Coverage against death and terminal illness
• Choose from 3 optional riders
• Guaranteed issuance of the policy

Source: https://www.chinalife.com.sg/en/products/china-life-lifetime-income-plan

China Life Harvest Income Plan (USD): Obsolete

The China Life Harvest Income Plan is a retirement plan offering you a lifetime of yearly non-guaranteed income. If you choose not to receive your annual income, you may opt to invest it to enjoy non-guaranteed returns of up to 3.50% p.a.

Despite the non-guaranteed income you might receive, you will still get 100% capital guaranteed upon maturity after you have ended your chosen premium payment term.

As for the premium payment term, you can choose to pay premiums for a period of either 5 or 10 years.

Along with the yearly income, you may also receive a loyalty bonus every five years. The bonus depends on your initial premium payment.

With the China Life Harvest Income Plan, you can also enjoy the higher of 108% of your total premiums paid or the guaranteed cash value, with any non-guaranteed income if you are diagnosed with terminal illness and death.

Features:

• Choose from 2 premium payment terms – 5 or 10 years
• 100% capital guaranteed upon maturity
• Non-guaranteed yearly income
• The choice to reinvest annual income at the non-guaranteed rate
• May receive loyalty bonuses every 5 years
• Coverage against death and terminal illness
• Guaranteed issuance of the policy

China Life Retire Easy Plan: Obsolete

The China Life Retire Easy Plan is a retirement plan that provides guaranteed annual income after your preferred payout age. The best thing about this plan is that the yearly income will increase by 4% each year.

The premium payment terms are available for 5, 10, or 15 years with 100% capital guarantee after the 8th, 9th, and 14th policy year respectively. You can select your desired payout age at either 55, 60, 65, or 70 years of age.

The China Life Retire Easy Plan will mature on your 99th birthday where you will receive a maturity lump sum payout.

You also get protection against death at the higher of 108% of your total premiums paid or the total account value. Hence, you can be assured that your loved ones will have something to rely on financially.

Features:

• Choose from 3 premium payment terms – 5, 10, or 15 years
• 100% capital guarantee after 8th, 9th, and 14th policy year respectively
• Choose from 4 selected retirement age – 55, 60, 65, or 60 years old
• Guaranteed yearly income once you hit the chosen retirement age
• 4% yearly increase in guaranteed income
• Coverage against death
• Guaranteed issuance of the policy

Conclusion

China Life offers pretty interesting annuity plans here in Singapore. However, the mentioned products are summaries of each plan, and there are terms and conditions applied for each of their features.

Although some of the plans look highly attractive, not every plan is suited for you, and not every plan is as attractive as it seems.

Thus, it is always advisable for you to conduct thorough research before deciding to purchase any financial plans for yourself.

Read our best retirement plans in Singapore guide to help you with your research.

If you’re still unsure of what you should be getting for yourself, always engage a trusted financial advisor. This makes sure that your different needs and wants are taken into consideration and plans are recommended based on your unique scenario.