An old couple shows their first pension from the house-for-pension program. (Photo/Beijing Youth Daily)

China's first house-for-pension program, initiated by insurance company Happy Life, has experienced a slow start in Beijing by bagging only 12 contracts in four months, according to Beijing Youth Daily.

Approved by the China Insurance Regulatory Commission (CIRC) on March 25, the program did not lure its first customers until June and had only 12 contracts by July 17, which is insignificant considering the 216 million senior citizens in the country.

The house-for-pension program, also known as a reverse mortgage loan, grants a fixed monthly pension to home owners. In return, the bank or insurance company that runs it would be entitled to sell, rent or auction the house when the owner dies.

The amount of pension depends on the value of the mortgaged property according to an assessment system. A 65-year-old male with a house worth 5 million yuan (about $805,500) is entitled to 15,155 yuan a month.

A woman surnamed Huang, 75, said she chose to join the program and received more than 10,000 yuan a month.

After 10 years of preparation, the CIRC released regulatory guidance regarding the house-for-pension program in June 2014 and announced a pilot trial period in Beijing, Shanghai, Guangzhou and Wuhan from July 1, 2014 to June 30, 2016.

A 62-year-old woman surnamed Zhang said despite the monetary benefit she chose not to join the program in order to leave her house to her children. She added that it is hard for young people to buy a house in Beijing at such high prices.

Tuo Guozhu, a professor with Capital University of Economics and Business, said the house-for-pension program is far from being the mainstream choice among China's aging population.