Universal Life Insurance in Hong Kong and China: A Trend Catching Up

Life insurance, as an industry, has emerged from a fringe industry to one of the most flourishing sectors in the business world. The rapidly increasing popularity of Universal Life insurance in Hong Kong and China shows the increasing level of awareness among the people of today, regarding the need to protect the future. It also points to the fact that people have gradually started seeing insurance as a long-term investment perspective, rather than a short term money spinner.

The recent shift from short-term insurances, such as term insurance, shows that the guarantee of a secure future is appealing to the masses. So much so, that they are even ready to pay higher premiums for alternatives, such as universal life insurance, in the initial years, if it promises to take care of their needs in the days to come.

Universal Life Insurance Hong Kong

Universal Life insurance in Hong Kong and China has really hit the chord right with the people as it provides a lot of benefits and flexible options to not only save your money but add to it a swell. Young people who have just got their jobs are making insurance investment a priority. This is because if you start early, the investment returns and the accumulated cash value can be used while you still have the vigour left in you!

Loans can also be taken against funds thus collected. Overall, the conventional role of universal life insurance, i.e. a protection for old age is not so rigid anymore as more and more youngsters are using the funds to sponsor retreats, vacations or any other long-dreamt indulgences.

Universal life insurance also provides an opportunity for the owner to try out a bit of stock and market analysis skills as it enables them to choose the securities, debenture or mutual funds where the investment portions of their premiums will be ploughed in. The owner decides the investment inlets as per their estimates or instincts, rather than being stuck with the decision of the insurance company. In addition, the insurance company also helps the owner by providing information material, IPOs, statistics and estimates etc.

The concept of life insurance, and especially Universal insurance with its multi-layered benefits, is sure to be the chosen weapon for many to battle the unseen demons that the future has to offer!

A Comparison between Term Life and Permanent Life Insurance Policies

Selecting an insurance policy is always an important decision that should be taken only after considerable thought and planning, as the implications are long-term and generally irreversible. Your insurance cover is the commander of your future fortress, being the most vital cushion of comfort for your family after you are gone. A prudent way to go about selecting an insurance policy is to compare the pros and cons available of the different types and then choose the one that best suits your needs. To help, let us take a look at the intricacies of the two most popular types of insurance options – term and permanent life.

Term Life Insurance

Term Life Insurance

This type of insurance provides security for a specific duration, and if the policyholder dies within the stipulated period, the beneficiaries receive the face value of the policy tax-free. However, in case the policy holder outlives this timeframe, then another policy must be bought in order to continue the insurance. Some key aspects of term life insurance:

• Provides no other benefit besides protection, as the holder pays only for the insurance and no cash value is generation. This is the reason why premiums of term life insurance policies are usually lower than the premiums of permanent life insurance policies.
• The only return in this case is the Return-On-Premiums (ROP), which is the sum total of all the premiums paid by policy holders at end of the term.
• It is a suitable option for those with short-term requirements. E.g. School and college expenses for children, holiday planning etc.

Permanent Life Insurance

Permanent Life Insurance

Although permanent life insurance policies cost more, they have certain characteristics that give them an edge over term life insurance; for instance, death benefits and an accrued cash value. Another important differentiator is the fact that premiums for permanent life remain almost constant over the years, while for term they keep on gradually increasing as the end of the stipulated period approaches near. Other key aspects to know:

• It is essential to keep the permanent policy alive for a long period of time as longer the policy is in force, higher is the amount invested in it, and even greater is the amount of dividend and interest earned by that amount.
• The amount that gets accumulated in the investment account as cash value is also tax-deferred, which enables the holder to withdraw or take loans against it to meet contingencies without having to worry about the dreaded government scissors on their pockets.
• Permanent life insurance policies suit those individuals who do not have any significant short-term debt that can hamper their ability to pay premiums and have long-term debts to acknowledge, for example, estate duties and taxes, and they do not want their beneficiaries to be worried about it in their absence.

Hope this read clears some of your doubts about term and permanent life insurance policies, and helps you to select a suitable policy as per your requirements.

Get fast life insurance quote online from below given websites to protect the people you love. Customize your policy with options that best meet your needs:

Universal Life Hong Kong & China: http://universallife.com.hk/

Universal Life Indonesia: http://universallife.co.id/

Universal Life in China, Hong Kong and Indonesia: An Overview

Life insurance investment requires a cautious and prudent approach. The universal life policy plans have certain features and benefits, as explained below, that make it a popular option for buyers in China, Hong Kong and Indonesia.

Universal Life

Traits of Universal Life Insurance

Alterable Premiums
Universal life gives you greater freedom to plan an insurance combination that suits you the best rather than following a rigid framework. Any figure that falls in the maxima –minima range as fixed by the IRS is acceptable. Premiums can be increased, decreased, or even avoided altogether, as per your current financial situation.

Adjustable Death Benefit
In contrast to term insurance, the death benefit can be changed, while complying with the broad limits set in the contract, without having to opt for a new policy altogether.  This continued protection even if the basic requirements change is a unique feature of universal life.

Change in Credited Interest
The insurance company has the right to periodically change the interest rate that is credited. However, this rate will never go down the minimum amount stipulated in the contract. It is this feature along with the dividend earned on the amount invested that leads to lesser premium amounts as the company can earn returns from the market.

Alternate plans
Universal Life in China, Hong Kong, Indonesia and most other parts of the world offers two separate plans to treat death benefit, Level Death and Increasing Death.  Level Death Benefit option, offers the death benefit to be the face amount only. The net risked amount is the difference between face value of the policy and the current policy value, which keeps on decreasing as the policy value increases.  This lowers the cost of insurance. On the other hand, the Increasing Death Benefit option offers the sum of the contractual policy figure and the latest policy value as the end gain.  This increases the long term expenses due to increasing cost of insurance but accumulates a larger amount at the time of death.

Universal Life

Why Opt for Universal Life?

Settle Debts
It takes away the frown from your forehead as paying off educational loans, estate taxes and mortgages becomes a cakewalk with direct withdrawals or taking a loan against the accumulated cash value of the policy. It’s an all smiles proposition as these loans and withdrawals are tax-deferred.

Stable Flow of Income
UL ensures that the deceased is missed is only emotionally and not because of financial strains as the death benefits keep the stream of income flowing continuously to the family through interests, dividends and/or lump-sum payment.

Equitable Distribution
The long-term multiplying effect of the cash value helps you to plan in advance the equitable income value that is to be distributed among your beneficiaries. Prior calculations can be done to help figure out your post retirement plans as well.

Use the below given universal life sites to educate yourself about your life insurance needs. Get life insurance rates for Term, Whole, and Universal Life Insurance.

Universal Life Hong Kong & China: Universallife.com.hk

Universal Life Indonesia: Universallife.co.id

Secure Your Future: Learn How Permanent Life Insurance Works

Permanent life insurance assures a sum due to be paid at the maturity of the policy (assuming the policy is continued) and the policy generates a cash value. It provides protection for your entire lifetime in most cases.

Regardless of when you die, as long as premium payment is up to date, your beneficiaries will receive the proceeds, generally income tax free. Permanent life insurance works to meet long-term requirements; has level premiums and a cash value that grows tax deferred.

Permanent Life Insurance

Short-term Benefits
• Dividends can take care of premium payments.
• Total death benefit can be grown along with your coverage without increasing your premium.
• Premiums, although higher on a permanent life insurance policy, contribute to the growth of the policy’s cash value.
• Permanent life insurance is flexible and provides you dynamism to change your plan according to your present needs.

Long-term Benefits
• Protection of funds which are a part of your portfolio.
• Cash value growth over time.
• Tax benefits
• Dividends providing competitive returns.
• An asset that is immune to recession.

Access to Cash Value
The amount generated over the years in the cash value account can help you meet your urgent needs as well as achieve financial goals. It helps to:

• Be a crutch during your retirement
• Fund your child’s education
• Provide a viable option where heavy down payment of funds is involved
• Carry out a new business venture
• Meet family emergencies
• Save tax

Over the past few years, the need for permanent life insurance has been felt by people belonging from all strata of society. Today, people are using permanent life insurance for the powerful use of its cash values and the freedom it provides in retirement, along with its ability to leave a legacy to family or charity. In these circumstances, permanent life insurance makes it more than just a death benefit, it becomes an asset.

Get a life insurance quote through universal life to protect the people you love. Customize your policy with options that best meet your needs:

Universal Life Hong Kong: Universallife.com.hk

Universal Life Indonesia: Universallife.co.id

Term vs. Permanent Life Insurance: Which One is Ideal for You?

Permanent Life Insurance

On hearing the word ‘life insurance’, the first thing that comes to our mind is security against the uncertainties of life. It is undoubtedly true that life is uncertain and we never know when we might have to lock horns with trouble. In such a situation, life insurance plays a very important role by providing comprehensive financial security to your dependents. You would definitely want your family to be financially stable even after your death. If so, there is no better option than buying a suitable life insurance policy that can cover all the needs of your family.

Once you decide that you need life insurance, the next important step is to look for a policy that can match your requirements. Broadly speaking, you have two options:

• Term life insurance
• Permanent life insurance

Term vs. Permanent Life Insurance
Out of these two options, most people go with the second one. This is because permanent life insurance has more benefits than term life insurance. There are many people who are unable to select an appropriate policy as per their needs as they aren’t completely aware about what each of the options hold. To clear the confusion, it is necessary to understand both these types of life insurance.

Term life insurance
If you are looking for a life insurance policy that provides coverage for a limited period of time and has a fixed rate of payment, then term life insurance is an ideal option. Under this policy, if the insured dies during the term, their beneficiaries get the benefits; however, if the person lives past the pre-determined duration of the policy, the policy expires and there is no benefit for the insured.

Permanent life insurance
Permanent life insurance is the best option for people who wish to get lifetime coverage. Permanent life insurance allows people to take a loan against the cash value of their policies. However, for taking a loan, a person needs to have a good amount of cash value as borrowing against the policy’s face value is not allowed. The premiums of permanent insurance policies are usually higher compared to term insurance.

To encapsulate, it can be said that term life insurance is for those who want to pay low premiums, even if that means limited coverage; on the hand, permanent life insurance is an ideal option for those who need comprehensive coverage and can afford to pay higher premiums.

If you have any query or need a quote? You can use enquiry form available on below given websites: