Term Life Insurance, also known as Term Life Assurance, covers you against your risk of death over a specific length of time.
When you apply for a Term Life Insurance plan in Hong Kong you will be given the option of selecting the length, or term, of the policy. If you die during the plan’s term, or while the policy is in force then the Hong Kong Term Life Coverage will provide a lump sum payment to a beneficiaries of your choice.
It should be noted that an HK Term Life insurance plan will only provide a death benefit if the insured individual dies during the term of the policy. For example, in the event that the insured party dies a single day after the expiration of the policy then no payment would be made to their beneficiary under the plan due to the lapse in coverage.
It should be noted that in a majority of cases a term insurance plan will normally end without resulting in a claim. As such, this is typically the least expensive type of life insurance plan available in Hong Kong.
There are two main types of term life insurance plan available to policyholders in Hong Kong. The different types of life insurance products available through CCW Global include:
The types of term insurance available via CCW Global will fill a wide range of different policyholder needs.
For more information about the specific variants of term life insurance in Hong Kong please click on one of the above links.
This type of Hong Kong Life Insurance plan is not generally used for estate planning; if you are looking for a form of Life Insurance which can be used for estate planning purposes, CCW recommends considering an HK Whole of Life insurance policy.
Term Life Insurance in Hong Kong offers a pure death benefit; this means that the policy is wholly designed to provide a settlement only in the event of the insured party’s death. Because of this a Term Life Insurance plan is normally used in Hong Kong to provide protection for the insured financial responsibilities to any dependants or beneficiaries.
This can include Funeral Costs, Mortgage Repayments, Child Education Funds, and Credit Card Debt, amongst other financial responsibilities which the insured individual may have held.
As previously mentioned a Hong Kong Term Life Insurance policy will provide a death benefit over a specific length of time.
When applying for a Term Life Insurance policy you will normally be given the option of selecting the duration of coverage you are able to receive under the plan with typical Term lengths lasting 5, 10, 20, 30, or 35 years.
While the choice of the exact duration of the policy is normally left up to you, it should be noted that choosing a Term Life Insurance plan which provides a longer period of coverage will normally be more expensive than selecting a policy with shorter coverage durations. This is due to the fact that your risk of death will increase over time, meaning that the longer you hold a Term Life Insurance policy the more likely you are to die.
Consequently, there is a higher risk of a settlement with plans offering longer terms which mean that the premiums of these policies will generally be much higher than their shorter counterparts.
In order to obtain a Term Life Insurance policy in Hong Kong you will have to complete the application paperwork provided by the Insurance Company. It is also normal that you will have to undergo a complete Medical Check-up to assess your relative health and risk of premature death during the term of the policy.
If you Smoke Nicotine, use any form of Narcotic, or possess a number of other poor health metrics, then these will be identified at the Medical Screening. As such, it is vital that you complete the Term Life Insurance application paperwork as comprehensively as possible, disclosing all material facts that will influence the underwriter’s risk assessment; these facts an activities will then be used to calculate the overall premium of your Term Life Insurance policy, together with your age and general risk of death.
Failure to disclose material facts at application may result in denial of coverage.
If you would like to receive a free quotation comparison for a Hong Kong Term Life Insurance plan, simply complete the short form at the top of this page and select Life Insurance from the menu. Once we have received your quotation request an expert Hong Kong Life Insurance Broker will contact you with a comparison overview of all the policies best suited to meet your specific needs.
To learn more about the Term Life Quotation process please click Hong Kong Term Life Insurance Quotes.
You can also Contact CCW to learn more about the coverage offered under a Hong Kong Term Life insurance plan, the premium calculations associated with these policies, or enquire about any of the Hong Kong Insurance products offered by CCW Global.