Individuals with high personal net worth need to preserve their assets for maintaining their wealth and lifestyle. For such individuals in Hong Kong, term and permanent life insurance plans are very beneficial. Some insurance companies offer the flexibility of both types of life insurance policies in the country.
The comprehensive insurance policies offered by some reliable insurance companies have the following main features:
Premium amount
Those who are looking to buy an insurance policy are always concerned about the premium amount. To make sure you are aware of the right premium amount, you should be careful about the insurance quotes, as there might be some sub-clauses that alter the final amount of premium payable. These sub-clauses are generally about:
• Whether the insurance plan has a no lapse guarantee feature or not, and if yes, for what duration of time?
• Does the plan have a zero endowment policy?
Do not forget to factor in these clauses to figure out the exact premium amount.
Premium frequency
Clients have the option to choose One Time Single Premium or pay in installments that are spread over 5 to 20 years. The premium frequency allowed by various insurance companies differs.
Breakeven Year
Breakeven year is an indicator to the investors when the commission charges for the insurance policies have been completely paid up for. Most people do not like to exit the plan at the breakeven year but continue their coverage either with much lower premiums or even zero premiums depending on the policy terms.
Credit Rating
The financial stability of insurance companies in Hong Kong is determined by their credit ratings, as many international ones are not based in the country or may not be locally incorporated. The best thing to do would be to only deal with policies being offered by the major insurance providers. You can also check the Hong Kong Monetary Authority’s website for the list of approved insurance providers in Hong Kong.
Whether you are looking to buy term or permanent life insurance in Hong Kong, learn about the terms and features of policies before signing on the dotted line.
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