New Retirement Plan Launched

The Hong Kong Mortgage Corporation (HKMC) today launched the Policy Reverse Mortgage Programme, enabling borrowers to use the life insurance policy as collateral to draw down loans.

The programme serves as another tool in the market to provide retirees with an immediate, stable and lifelong stream of income for enhancing the quality of their retirement.

Participants can opt to receive monthly payouts over a fixed period of time or throughout their lifetime. They may also borrow lump-sum payouts for specific purposes.

In general, borrowers do not need to repay the loans during their lifetime, and after they pass away, the lenders will use the amount recovered from the death benefits of the life insurance policy to repay the loans.

HKMC Executive Director Raymond Li said the product's payout calculation is based on its death benefits instead of its cash value.

“In other words, the Policy Reverse Mortgage Programme can meet people's retirement needs by converting assets, which are supposed to be granted after death, into instant cash flows,” he added.

The programme will accept applications from May 30 to November 8.

Promotional offers will be introduced for the programme as well as the existing Reverse Mortgage Programme and the HKMC Annuity Plan.

Meanwhile, the HKMC Annuity Plan's maximum premium amount per person will be increased to $3 million from May 9.

For enquiries on the HKMC Annuity Plan, please call 2512 5000. For the other two schemes, please dial 2536 0136.

A two-day expo comprising exhibitions and seminars on the three schemes opened today at MCP Central, Tseung Kwan O.

Click here for details.