Term Critical Illness Protection in Hong Kong

CCW Global is excited to announce that we are able to offer new Term Critical Illness insurance products to our clients in Hong Kong.

Traditionally we have been limited to providing critical illness protection via life insurance products. However, new developments in the Hong Kong Insurance market have seen the creation of dedicated Critical Illness products which are designed to provide a standalone, long-term yet affordable solution to managing your risks of falling seriously sick.

Critical Illness insurance is arguably one of the more important types of personal insurance protection, but it is also one which goes largely overlooked as it is typically offered only as a supplemental benefit on Life Insurance products. This means that many people do not take advantage of this valuable coverage, and will not have the support they need should they suffer from a long-term illness.

What is Critical Illness Insurance?

Critical Illness Insurance is fairly self-explanatory.

This type of coverage is designed to provide you with a lump sum financial benefit in the event that you suffer from a long-term, serious, critical illness.

As previously stated, Critical Illness insurance has normally been obtained as a rider on a term life insurance policy. This means that you would usually have to purchase Term Life Insurance coverage and then opt to buy the additional Critical Illness protection offered by that policy (normally for an increased premium).

When the beneficiary (who is not necessarily the policyholder) is diagnosed with a specified illness, then the insurance will pay a benefit. These illnesses are normally things like Cancer, End Stage Liver Failure, and Alzheimer’s.

However, the introduction of Term Critical Illness products in Hong Kong, where the CI insurance coverage is the primary benefit, and not the ancillary, has meant that Critical Illness protection is far more accessible and affordable than it has been.

What is Term Critical Illness Insurance

Term Critical Illness insurance operates in much the same way as the critical illness protection found on a life insurance rider does; if you (or, more specifically, the policy beneficiary) are diagnosed with a specified illness then the policy will pay you a benefit.

However, under a Term Critical Illness policy you are able to avail yourself of Critical Illness protection without buying a term life insurance policy. A death benefit of up to 120 percent of the policy’s death benefit can be provided, but the core concern of this type of insurance is to provide financial support in the event of serious sickness.

As you may have guessed with the inclusion of the word “Term,” as with Term Life Insurance, this type of insurance coverage will run for a specific length of time. This is normally 1 year, 5 year, or 10 year terms, which can be renewed for an increased premium when the term has been completed. Premiums are paid annually, but are locked for the duration of the term. This ensures that you are able to efficiently budget, while managing your risks of being unable to earn income due to illness.

With regards to the protection being afforded under a Term Critical Illness policy, some of the major highlights include:

• 82 critical illnesses covered
• Death benefit
• Waiver of Premiums
• Intensive Care Unit Benefits

This streamlined coverage means that premiums are actually very affordable, giving the policyholder maximum benefits for a relatively low cost.

Critical Illnesses Covered

Benefits are provided under a Term Critical Illness plan if the beneficiary has been diagnosed with one of approximately 82 specified conditions. This includes roughly 71 major medical conditions and 11 early-stage illnesses.

If a policyholder is diagnosed with a Major medical condition, then a Term Critical Illness policy will cover 100 percent of the sum insured. If the policyholder is diagnosed with an early-stage illness, then the benefit paid will be between 10 to 50 percent of the total sum insured (dependent on the condition, when it was diagnosed, and its severity).

This ensures that policyholders are able to receive financial assistance at a critical time in their life when they need to focus on their treatment. It also allows for early intervention through the coverage and benefits associated with early-stage illnesses – giving a greater chance for long-term survival of the policyholder even when the prognosis is not optimistic.

ICU Benefit

If the last two years have taught us anything it is that the unknown can, and will, happen.

Under a term critical illness policy, if the life being insured is admitted to an intensive care unit for 3 or more days, regardless of the status of the disease or injury, then the plan can provide a lump sum benefit equal to 25 percent of the sum insured. This gives the policyholder the flexibility they need to deal with serious medical issues at stressful times; secure in the knowledge that they will have financial support should they need to go to hospital.

Premium Waiver

Under specific conditions, it may be possible to have future premiums waived under a Term Critical Illness policy.

If the life insured has received benefits under the plan equal to 100 percent of the sum insured (either for an ICU stay, early-stage illnesses, or major illness), then the insurer may waive any premiums due for the remainder of the policy until such time as the policy is terminated. This allows policyholder the flexibility to not worry about additional bills whilst they, or their loved ones, are dealing with a serious medical condition.

Death Benefits

While providing a lump sum benefit in the event of a serious medical diagnosis is the primary concern of a Term Critical Illness policy, this type of Hong Kong Insurance product will also normally provide a death benefit under the plan’s umbrella.

Should the life insured die while the policy’s term is in force then the insurance will pay 120 percent of the total sum insured.

Why Choose Critical Illness Insurance?

By-and-large, Critical Illness insurance can be far more cost effective than a annual health insurance policy or a term life insurance plan. The targeted coverage and protection afforded to the policyholder, and consequently the life insured, under this type of policy can help provide peace-of-mind in even the most stressful and emotional of situations.

If you’ve never thought about obtaining a critical illness insurance policy then now may be the time to ask yourself the following questions:

• How would my family manage if I was diagnosed with cancer and needed intensive chemotherapy?
• Would I be able to work after a cerebral aneurysm?
• Have I lived in cities that may have given me lung disease due to environmental factors?

The answers to these questions may shed light on how you and your loved ones are suited to overcome the obstacles of any future health challenge. The expert brokers at CCW Global can assist in helping you to understand how a term critical illness insurance policy may be the right fit for you.

For more information about Term Critical Illness Insurance plans in Hong Kong, or to receive a free quotation comparing the options that best suit your specific needs, please contact us today!