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1) |
There are many types of life insurance. How can I choose
the most suitable one for me? |
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You are recommended to take
your own financial needs and economic situation into consideration
when selecting the most suitable type of life insurance.
There are 3 main types of life insurance: term
insurance , whole life insurance and endowment
insurance . Based on the 3 main types of life insurance,
most insurance companies have developed a number of life
insurance plans to cater to the different needs of customers.
Once you understand your own needs, then select one type
of life insurance and ask an insurance consultant to prepare
a tailor-made life insurance plan for you. |
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2)
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What
is the difference among term insurance, whole life insurance
and endowment insurance? |
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Term
insurance provides life insurance protection to
the insured for a specific period but comes without
any savings element. In other words, insurance company
will pay the sum assured if death occurs during the
covered period. However, if the insured is still alive
at the maturity date of the policy, no money will be
given to the insured by the insurance company. As no
savings is provided, premium for this type of insurance
plan is the lowest.
Whole life insurance offers
lifelong protection and savings to the insured. Premium
will not be changed after the policy has come into effect.
Endowment
insurance will pay the sum assured if death occurs
during the covered period. Different from term insurance,
if the insured is still alive at the maturity date of
the policy, he/she will also receive maturity value
of the policy.
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3) |
Is it a fact that the later I buy life insurance plan,
the more money I can save? |
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In fact, more premiums will
be required if a person purchases a life insurance plan
at an older age. On the contrary, the premium will be
lesser if a person buys a life insurance policy when he
is younger. Besides, health condition may also be poorer
when older, in which case insurance company may reject
the application for a life insurance plan. |
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4) |
Will insurance company pay out death benefit if the insured
dies from committing suicide? |
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Life insurance policy usually
has a suicide clause which defines the contestable period
if the insured commits suicide. It usually counts from
the policy effective date. If the suicide is committed
beyond the contestable period, the insurance company is
required to pay out death benefit. |
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5) |
Can the beneficiary file a death claim to the insurance
company if the insured has gone missing for years? |
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According to the Common
Law, a person will be presumed death if he/she has gone
missing for 7 years and his/her relatives cannot establish
any contacts with him. As a result, the beneficiary can
file a claim to the insurance company under such situation.
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6)
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What
is a rider in life insurance? What is it used for? |
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A rider is a supplementary
contract attached to the basic life insurance policy.
The purpose of purchasing a rider is to increase the protection
amount and coverage. A rider cannot be purchased individually
and it must be attached to a basic policy. If the basic
policy expires, the rider will also be terminated. |
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7) |
Can an agent rebate part or all of the commission to customers
as a privilege to them? |
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No. According to "The
Code of Practice" published by The Hong Kong Federation
of Insurers, an agent cannot offer to pay any rebate of
premium as an inducement to any prospective insurance
policyholder. |
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8) |
What is the suitable age for purchasing an insurance plan
for a kid for their future education fund? |
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Generally speaking, it is
better to buy child
education insurance at an early stage. There are 3
reasons for it: (1) the health condition of kids is better
when they are younger; (2) more money can be saved for
future education use if purchase insurance earlier; (3)
there is an age limit for this kind of insurance plan.
Insurance company may not accept the application if the
insured is beyond the age limit. |
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9) |
When
can the cash value be redeemed for child education insurance? |
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Usually, there is a specific
premium-paying period for child
education insurance . The cash value can be collected
when a child reaches the age of 18 or 21. Some insurance
companies will convert the policy to an adult life insurance
plan upon customers’ request. Some companies may
even provide whole life protection free-of-charge. |
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10) |
Is medical examination required for purchasing medical
insurance? Is it needed to report the health condition
and medical history to insurance company? |
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Medical examination is not
a must for purchasing medical
insurance which is subject to the requirement of insurance
company. Age, health condition and the sum assured amount
are the considerations for insurance company to decide
whether medical examination is required. The insured has
to declare his/her health condition and medical history
in the application and has to sign as confirmation. Otherwise,
insurance company may base on misrepresentation and non-disclosure
to void the policy. |
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11) |
Can
the insured cancel a policy? If so, will there be any
refund of premium? |
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Although the policyholder
has the right to cancel a policy, insurance company does
not. Insurance company does not have the responsibility
to refund the premium if the policy is cancelled by the
policyholder. If the policy has accumulated cash value,
the policyholder can base on the provision of non-forfeiture
option and ask the insurance company to return the cash
value. However, if there is no cash value accumulated
upon cancellation of the policy, the policyholder may
not get any refund from the insurance company. For participating
plans, if the annual dividends have been accumulated before
policy cancellation, the insurance company has to pay
all the dividends to the insured. |
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12) |
Can a minor purchase life insurance plan? |
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According to Hong Kong law,
persons of age below 21 is classified as minor. A minor
can also buy life insurance but he/she needs to appoint
a trustee who is usually the parents or the guardians.
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13) |
Before emigrating to another country, I add an accident
rider to my life insurance which has been bought for a
long time. Can I get indemnity if I have accident in other
country? |
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There is no geographical
limit for the coverage of an insurance policy. Therefore,
the insured can still enjoy the insurance protection by
paying premium continuously after emigration. As claim
applications have to be handled by the office where the
policy is issued, you should submit your claim applications
to Hong Kong office since you purchase your insurance
in Hong Kong.
Please take note that the insurance company may take more
time to check the document and information provided by
the insured for claims applications as the accident is
not happened in Hong Kong. |
*The above information
is for reference only.
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