Insurance

BE INSURED

A handy checklist to help you navigate Hong Kong’s insurance industry

Know your options and make the right choices

With Covid-19 still a real concern in the community, there’s even more reason to dive in and navigate the plethora of insurance options available. The industry is ultra-competitive with options that can leave you bewildered and quickly out of pocket. But insurance, be it medical, home, personal accident, income protection, life insurance or critical illness is well worth having, if only for peace of mind in today's increasingly complex world.

Do your homework

It will come as no great shock that healthcare in Hong Kong is among the most competitive

industries in town. The likes of HSBC, AIA, FWD, Cigna, Bupa, AXA, Zurich, Manulife and Prudential are just some of the many options around for families. Depending on what level of coverage you are looking for, pricing can range wildly - as do the types of insurance packages that are available. Our number one tip is to do your homework, understand the finer details or talk to a broker to get the best information.

What’s out there?

There’s no shortage of options, but it’s critical that you decide early what’s best for you and your family. You don’t want to get yourself locked into an expensive insurance package filled with things you don’t need. In the past year demand for health and life insurance has surged. We hear demand has become so great that some of the bigger international groups have sold out of their key life insurance packages and won’t take new customers.

Medical insurance

Expensive medical treatment due to illnesses or hospitalisation can have a disastrous impact on your financial resources and medical insurance can save you from this. But unlike the US where healthcare costs are high and health insurance is extremely beneficial, Hong Kong gives us the option of a much cheaper and reliable government system. Yes, private health coverage will give you access to some of the most stunning hospital rooms in the world, but private hospitals often rely quite heavily on the public system, especially for emergencies.

Wealth accumulation

One of the more interesting facets of insurance in Hong Kong is that many will offer an aggressive savings and wealth accumulation plan as part of their offering. Whether you are saving for your child’s education or building wealth for retirement, the likes of Manulife, HSBC, AIA and Zurich offer attractive, stable and sometimes lifetime guaranteed interest rates.

Pre-Existing conditions

Unfortunately most insurers in Hong Kong will discriminate against pre-existing conditions. Some may ask for medical history going back as far as seven years. Others require more. If you have been sick you might find yourself on a waiting list for up to two years until your coverage is approved. In worst case scenarios you may not be insurable at all.

Tracking and monitoring

Like many industries, insurance is moving with the times and understanding customer data has become a top priority for the insurance industry giants. Many will now offer incentives and rewards for customers who take good care of themselves. Some, like ManulifeMOVE and the newly-launched HSBC Live Well+ will offer additional benefits to those of you who go one step further and track your fitness, sleeping patterns, how you eat and the number of calories you burn. So if synching your insurance plan to personal data is cool, then there’s options around.