CCW Global can provide comprehensive Universal Life Insurance options to Hong Kong residents. These policies will provide a death benefit to the policyholder in the event that the life insured dies, but also has a number of additional benefits.
Most similar to a Whole of Life policy, Universal Life Insurance plans are a flexible way to obtain comprehensive life insurance coverage which can change to suit your current needs – ensuring that you are always able to get the most out of your policy.
Unlike Term Life or Whole of Life insurance plans, a Universal Life Insurance policy will have flexible premiums. The policyholder can pay more, or less, than the premium stated in any given year after the first year, subject to certain limits.
At the policyholder’s discretion they can even skip payments for a particular policy year, although this may also be subject to certain limits.
It is important to realize that while premiums for universal life insurance products are flexible, and will allow the policyholder to pay for the plan within their means, the amount of coverage and the cash value offered by the plan are linked to how much premium is paid – so if can be beneficial to pay more than the stated premium if you are able to do so.
The death benefit provided by a Universal Life Insurance policy may be increased or decreased – subject to certain limits.
This is a key aspect of the Universal Life Insurance plan due to the fact that most other types of life insurance coverage in Hong Kong will have a fixed benefit amount for the duration of the policy. This enables the policyholder to adjust the benefit amount as his lifestyle changes – either for the better or for the worse. It is important to note that proof of insurability may be required if the death benefit is increased.
The policyholder is offered the option to choose a face amount (Death Benefit), or to choose a Death Benefit plus a Cash Value. If the policyholder opts to choose the latter the premiums associated with the plan will normally be higher due to the increased settlement at the end of the policy.
If the policyholder chooses to obtain a Death Benefit plus a Cash Value then the intention is that the policy will acquire increasing monetary value through the premiums paid by the policyholder. Once the initial premium has been made, additional payments can be made at any time to be included in interest earnings generated under the plan. These interest earnings are then added to the plan value once certain deductions have been made normally including an expense charge and the pure cost of protection.
One of the biggest attractions with a Universal Life Insurance policy is the fact that there is greater transparency in the overall pricing of the policy. With a Universal Life Insurance plan in Hong Kong the insurer separates and discloses the pricing factors of:
Normally life insurance plans do not disclose the expenses or loadings the policy includes in the premium calculation, but these factors are explicitly included in universal life insurance policies. These expenses and loadings can include things like adverse health risks of the insured, or the charges the insurer incurs on the policy administration.
A full detailing of the factors involved in Hong Kong Life Insurance Premiums can be found by clicking the link.
Universal Life Insurance providers are required to report to their policyholders once a year on the status of the plan. This enables the policyholder to receive more accurate details on the relative health of their policy, and gives the policyholder the ability to make changes as required (pay a lower premium for the next year, as an example).
Annual reporting enables greater transparency within the policy and ensures that there is no confusion or misunderstanding as to the operation of the policy.
If you would like to receive a free quote for a universal life insurance plan in Hong Kong simply complete the short form at the top of this page. Once you have submitted your quote a CCW Global insurance broker will contact you directly to further discuss your coverage requirements.Print or Share