China Life Lifetime Income Plan series 4 is a participating whole life plan with limited premium payment features. Choose between Single Premium, 5, 10, 15, 20 and 25 years premium commitment. Get to enjoy Lifetime Yearly Income with this plan.
How I would use this plan is more like for legacy handing over cash wealth purposes. Suppose a male aged 40, takes up this plan with a 5 year premium commitment of $14,972/yr. By the end, close to $75,000 would have been sunken in the plan. With zero accumulation period, we can be looking at illustrated yearly income of $2,280/year (Guaranteed $400, Non Guaranteed $1,880 @4.25% illustration.).
This means that if you have intended $X of wealth to hand over to the next generation, park it here and spend the regular payouts without regrets. Otherwise, the option to leave the payouts with China Life to accumulate interest is also available.
Some things to note. This review post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.
There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a rising interest rates environment, things are set to change.
China Life Lifetime Income Plan Series 4 may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.