Insurance Authority launches “QDAP Selection Made Easy” search tool to facilitate QDAP selection and comparison

23 February 2023

The Insurance Authority (IA) today (23 February 2023) launched “QDAP Selection Made Easy”, a one-stop search tool that allows users to choose and compare among available QDAP options based on their needs and preferences. The Full QDAP List has also been enhanced with more comprehensive product information and a sorting function to identify particular QDAPs by their key features.

QDAP Selection Made Easy guides users on their QDAP selection journey by having them answer five designated questions on the current age, preferred policy currency, duration of premium payment period, annuity commencement age and duration of annuity payment options. Based on the information they provide, users can obtain and download a list of QDAP options that meet their preferences. They can also sort the available QDAP options by various criteria, such as guaranteed and total internal rates of return (IRR) and first-year surrender value as a percentage of the annual premium paid.

“QDAP is a long term insurance product that may involve a large sum of money and a long policy term,” said Ms Carol Hui, Executive Director, Long Term Business of the IA. “Before taking out a QDAP, people should assess their personal needs, make a detailed comparison of the products available in the market, and choose the most suitable and affordable option. As the product design and key features of QDAP products in the market vary, QDAP Selection Made Easy is a useful tool to help potential policy holders compare products and make smart, informed purchase decisions.”

QDAP is a retirement planning tool that enables policy holders to receive a stable stream of income against longevity risk. Since its inception in 2019, more than 235,000 QDAP policies have been issued, contributing over $16.8 billion in annualised premiums. QDAP policy holders can claim a tax deduction for the premiums paid up to $60,000 per assessment year, if eligible.

QDAP Selection Made Easy and the Full QDAP List are now available on the IA website. Members of the public can learn more about QDAP on the thematic webpage for QDAP.

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