The most common question asked in relation to life insurance plans in Hong Kong is often “how much will it cost?”
Unfortunately there is no easy way to answer this question as a large number of variables and complex equations are used to calculate the risk, and consequently the premium, of a Hong Kong life insurance plan.
Generally, two main criteria should be satisfied in relation to the premium of a policy. The cost should be adequate, to ensure that the end benefit and all other contractual obligations are covered, and the cost should be fair, so that the policyholder is providing payment in line with the associated risk.
In this section CCW Global will provide details on the various components of a life insurance premium, and how such premiums are calculated.
A range of variables exist within the many types of life insurance plans available in the Hong Kong market. From Mortality rates, through to what type of policy is being purchased and whether the policyholder is sharing in the policy profits, there are an array of factors which will increase or decrease the overall cost of the plan.
Hong Kong Life Insurance plans are provided either on a Medical or on a Non-Medical basis. Each of these policy variants can have an impact on the premium, and impacts on the operation of the plan.
Different types of life insurance plan will have different premiums associated with the coverage. From simple considerations like the frequency of payments through to the overall death benefit on offer, and the value of the life insured.
Obviously the way in which the premium is calculated can have a tremendous influence on the final cost of coverage! There can be a huge difference between using older, more archaic methods of calculation and more modern methods; knowing these differences can help you to understand which methods of calculation are being used and how they may impact the cost of your policy.
If you would like to receive free, no-risk cost indications for life insurance plans in Hong Kong simply complete the short form on this page. Once we have received your quotation request we will provide you with a comprehensive comparison of all the leading coverage options best suited to meet your coverage needs.
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