The Policy Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI) which enables people who are aged 55 or above to use his life insurance policy as collateral to obtain policy reverse mortgage loans.

Product Features

Flexible payment term

The borrower can choose to receive monthly payouts either over a fixed period of 10, 15 or 20 years or throughout his entire life (until the maturity of his life insurance policy).

Lump-sum payout

The borrower may apply to borrow lump-sum payouts at the time of initial loan application and/or at any time during the payment term the borrower chooses for the purposes Note 2, such as full repayment of an outstanding policy loan on the life insurance policy, settlement of unpaid premium of the life insurance policy, payment for home improvement, repairs and maintenance of the property in Hong Kong , medical expenses etc.

Two options of interest rate plan

The borrower can choose a floating rate or fixed rate plan to meet his financial needs.

No repayment during the borrower’s lifetime

In general, the borrower does not need to repay the outstanding loan amount to the lender during his lifetime, unless the policy reverse mortgage loan is terminated under certain specified circumstances.

No penalty for early full repayment

The borrower may fully repay the outstanding loan amount and redeem the life insurance policy at any time and there is no penalty for such full repayment.

Six-month cooling-off period

If the borrower wishes to terminate his policy reverse mortgage loan for whatever reason, provided that he notifies the lender within the first six months and repays in full the outstanding loan amount on the proposed repayment date, he will be given a refund and waiver of all mortgage insurance premiums. However, the borrower still need to bear any accrued interest and financed fees in the outstanding loan amount and also the relevant legal fees relating to the termination of the policy reverse mortgage loan.

Warning: To borrow or not to borrow? Borrow only if you can repay!

Note:
1. The above information is for reference only and not complete. The programme is subject to relevant terms and conditions. For details, please refer to the Policy Reverse Mortgage Programme materials and offering documents issued by HKMCI.
2. Supporting documents are required for each lump-sum payout application. Other purposes not listed above may be considered on a case-by-case basis.
3. In case of discrepancies between the English and Chinese versions, the English version shall prevail.

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