China Insurance Regulatory Commission, Guiding Opinions on Launching Pilot Projects for Senior Housing Reverse Mortgage Endowment Insurance

Applicability: Reverse mortgage endowment insurance is an innovative commercial endowment insurance product that combines a residential mortgage and lifetime pension insurance, that is to say that a senior who has unblemished title to premises mortgages his or her real property to an insurance company, continues to have the right to occupy, use, benefit from and, subject to the consent of the mortgagee, dispose of, the premises, and receive a pension until death in accordance with the agreed upon conditions. Once the senior passes away, the insurance company secures the right to dispose of the mortgaged real property, the proceeds of which are used, on a priority basis, to cover the endowment insurance related expenses.