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Hong Kong Profile: Setting Up Life Insurance

Expats enjoy a unique lifestyle that allows them to travel the world and live outside of their own country. Living in Hong Kong is a top choice for expats, which account for 4.6% of the country’s population.

While you may be choosing a different path than your friends and family, there’s one thing that remains the same worldwide: death.

When you pass away, your family will be responsible for:

  • Funeral costs
  • Transporting your body

Term life insurance allows you to have peace of mind that your loved ones are not left with a financial burden that they cannot afford. Everyone, from the 20-year-old that’s travelling through Hong Kong to learn more about themselves to the 65-year-old that has spent a decade in the country, should consider two main types of insurance.

  1. Term life insurance. Fixed monthly payments will allow you to secure this form of life insurance. The term is determined by you and is for a limited period of time. If you perish during this period, a guaranteed death benefit is paid out to the beneficiary listed on the policy.
  2. Critical illness insurance. An insurance policy paid out in a lump-sum cash benefit, that provides you with coverage if you have a serious illness. The cash will allow you to pay for the care you need when your health insurance has been depleted. If you have a heart attack, stroke or other serious illness, this insurance will provide you with the money you need to pay for additional care.

These two forms of insurance are affordable and recommended for anyone that is or plans to become an expat.

Setting up a policy in Hong Kong is very similar to setting up a policy in Malaysia. While the initial setup is easy, prices are rising, and your policy may have extensive exemptions that can make your policy void.

Hong Kong’s Insurance Prices are Rising

Hong Kong’s insurance industry is seeing a surge in pricing that is already leaving tourists scrambling to find cheaper premiums. The premiums, overall, have risen 9% in the past year and show no signs of slowing down.

Expats who are thinking about purchasing insurance in their home country have to consider the following:

  • Most policies, unless explicitly stating otherwise, will not cover expats in other countries.
  • Policies will often ask for a place of residency, which needs to be in the same country where the underwriting takes place.
  • A policy may be void if you spend more than six months of the year outside of your home country.

One common scenario is that an expat purchases a policy in their own country. Sometimes, these policies are bundled together to save you money. While it may seem like a good choice to save money and be able to read the policy’s terms, it ends up in a dispute.

Expats live a unique lifestyle, and if you’re residing in Hong Kong at the time of your death, the insurer may decline your benefits. Your family can try and fight the insurance company, but deep inside of their terms and conditions is often a stipulation for the amount of time per year you reside at the address you’ve listed on your policy.

The insurer may reimburse some of the fees that you paid during your lifetime, but that’s all they’ll be obligated to return. If you try lying on your policy in any way or make one single mistake, the policy can be void with no recourse for your family.

Securing Term Life Insurance the Right Way

If you’re an expat living in Hong Kong, term life insurance and critical illness insurance are available. A quick, 15-minute process is all you need to get the coverage you need to offer your family the financial protection they deserve if you unexpectedly pass away.

Online policies have been designed to cover you wherever you go – in up to 207 countries worldwide.

No medical checks and worldwide coverage ensure your expat term life insurance policy won’t be disputed if you decide to relocate out of Hong Kong. Policies of $500,000 or less require no medical testing if you have no serious medical history and are under age 50.

You’ll also benefit from being able to read your insurance’s policy in a language that you understand.

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