Super Dry Goods! Hong Kong Insurance FAQ

Hong Kong as a global financial center fromFinancial regulatory systemuntil (a time)financial productThe enormous advantages of the Mainland have always been the focus of attention in the Mainland.

Of these, as Hong KongHigh returns on savings insurance(math.) genusCompound interest up to 6%~7%It is also highly sought after because it supports useful features such as multi-currency conversion, policy splitting and unlimited change of insurer.

However, many people who are considering purchasing a Hong Kong insurance policy come across a variety ofQuestions and concerns. In this article, we will provide a superbly dry answer to the question about theFrequently Asked Questions about Hong Kong InsuranceWe will help you better understand and choose the right insurance product for you.

Q: What are the exclusions of Hong Kong life insurance?

A: There are no exclusions except for suicide and death by gunshot within one year. The biggest advantage of Hong Kong life insurance is that there are no "exclusion clauses" or "exclusions"!

Q: Many of the benefits of Hong Kong insurance are expected, can they really be realized?

A: You can refer to the historical data of the insurance company's previous products. 2017 Hong Kong Insurance Authority Annual GN16 regulation came out, Hong Kong's insurance companies are required to publish the real dividend rate of participating products every year, the insurance company and the Hong Kong Insurance Authority official website can be queried for the data, which is open and transparent.

From the disclosed data, AIA's annual realization rate is in the range of 93-107%, AXA AXA is in the range of 95% or above every year, and Prudential's realization rate is also good, with overall high consistency with the plan.

Q: Dividends are not guaranteed, is it possible that the amount a customer can receive in the future will be much less?

A: Although dividends cannot be guaranteed, the dividend estimate in the policy is based on the current dividend payout and the dividend accumulation rate, which is now at its lowest point in the last decade or so, and the dividend estimate in the policy is already very conservative. Generally speaking, it may be equal to or even higher than this value.

Q: Is it troublesome to claim for Hong Kong insurance?

A: Mainlanders who go to Hong Kong to buy insurance are mostly in the form of savings and participating insurance and critical illness insurance. The former is an investment-like product and claims are naturally not a problem;

For critical illness insurance, basically all you need to do is to courier/upload the claim application form and the certificate of disease diagnosis from a tertiary hospital in China to Hong Kong, the claim process is very simple and the material requirements are even less than those in China.

Critical illness insurance has a low frequency of claims and fewer documents, and Hong Kong's insurance is also known for its "strict underwriting and lenient claims", so there is no big problem with claims.

Q: Do I settle my claim in Hong Kong?

A: If you have purchased an insurance policy in Hong Kong, you do not need to travel to Hong Kong for any future after-sale and claims services. You can contact the customer service of the insurance company directly, or through your own insurance agent or broker, fill in the required information and submit it to the insurance company.

Q: Is there a big exchange rate risk in buying Hong Kong insurance?

A: For Hong Kong insurance, it is usually a US dollar or Hong Kong dollar policy. Some customers may think that there are uncertainties in the future trend of RMB and US dollar, so the risk is high.

People who generally allocate dollar policies can be categorized into these categories:

① Long-term bullishness on the dollar.

② Long-term demand for U.S. dollars, such as children who will definitely study abroad in the future, or those who want to emigrate or live abroad.

(iii) Diversify risk considerations to allocate to dollar-denominated assets. The reason is also simple: holding assets in only one currency is the biggest risk.

④ People who are satisfied with the long-term return (6%-7%) even after considering the exchange rate risk.

Q: Why is there no official seal in the official Hong Kong policy?

A: It is not necessary to use the company's so-called official seal to confirm the validity of the policy in Hong Kong, which is a common practice in western countries.

To verify the authenticity of a Hong Kong policy, customers can call the customer service of the Hong Kong insurance company and check their personal information and policy number with the customer service; or log in to the online account assigned to the customer by the Hong Kong insurance company.

Hong Kong society is a relatively honest society. As long as the customer takes out the policy in the manner specified by the insurance company, everything is fine. The second cover page of the official Hong Kong policy contract bears the signature of the general manager of the operations department of the insurance company.

Q: Will Hong Kong insurance companies go out of business?

A: For life insurance, the Hong Kong government is very strict in regulating the insurance industry in Hong Kong. For every sale, the Office of the Commissioner of Insurance of Hong Kong will require the Hong Kong insurance company to maintain the assets of the policy with a value of 80% in Hong Kong in order to better protect the interests of the policyholder.

If a life insurance company in Hong Kong is not doing well and is on the verge of a crisis, the Hong Kong Government will step in and allow an insurance company with financial strength to merge with it, so as to protect the life insurance policies sold in Hong Kong from losses. The Hong Kong Government is also in the process of setting up the Hong Kong Life Insurance Reinsurance Fund to guarantee every life insurance policy sold in Hong Kong.

Q: What information do Mainland visitors need to bring with them when taking out an insurance policy in Hong Kong?

A: When Mainlanders go to Hong Kong to apply for an insurance policy, they should bring along their Hong Kong and Macau Travel Permits and identity cards; if the husband and wife are sponsoring each other, they have to provide marriage certificates or household registration books; if they are buying an insurance policy for a child, the child has to provide a birth certificate. (Bank card with UnionPay logo for payment by credit card)

Q: What does it mean when the plan says it doesn't apply to Mainland China?

A: Hong Kong insurance contracts signed in Mainland China are invalid and not recognized. The purchase of Hong Kong insurance must be signed in Hong Kong and is protected by Hong Kong law.

Q: Do I need to go to Hong Kong to collect the money after the claim is successful?

A: No, the insurance company will write the customer's name on the check and also transfer the money to your account, you just need to withdraw the money from the mainland bank. This is the most common withdrawal method, depending on each insurance company.

Q：Why do I need to get an "arrival paper" when I apply for insurance in Hong Kong?

A: When you come to Hong Kong to take out an insurance policy and go through Hong Kong's self-service immigration channels, you must get an "entry slip" and hand it to the insurance company for your entry record.

Q: Do I need to travel to Hong Kong in person?

A: Application: Insured persons aged 18 or above must travel to Hong Kong in person to sign the policy. If an immediate family member applies for the policy for a young person under 18 years old, the child does not need to travel to Hong Kong in person, but he/she should bring along the child immunization record card and relevant supporting documents.

After-sales and compensation: After customers have legally taken out the insurance policy in Hong Kong, customers are not required to travel to Hong Kong in person for future after-sales and claims services (except in the case of death, where the beneficiary must travel to Hong Kong in person). Customers can contact us through the following channels: 1. Online enquiry; 2. Telephone enquiry; 3. Insurance agent.

Q：Hong Kong insurance health notification is unlimited notification, sneezing have to report, smoking is not allowed to buy Hong Kong insurance is it?

A: The health report of Hong Kong insurance is "truthful information", you only need to inform your own medical records, medical insurance cards, medical reports show diseases, and abnormal data can be truthful, not as scary as the rumors, but it is really stricter than the domestic requirements.

In case of loss of medical information or non-subjective forgetfulness, a medical examination can be conducted at a hospital designated by your Hong Kong insurance policy.

Smokers are free to take out Hong Kong insurance, but are required to pay additional premiums ranging from 30% to 40%.

Q: Where can I go to resolve disputes in Hong Kong?

A: The Hong Kong Insurance Claims Complaints Bureau (HKICCB) handles cases up to HK$1.2 million, and since May 1, 2013, the scope of claims has been expanded to include inland and overseas persons, and the processing time is usually 4 to 6 months.

Q: Do I need a medical examination to buy Hong Kong insurance?

A: It needs to be decided according to the type of insurance and the sum insured. Critical illness insurance and high-end medical care of Hong Kong insurance requires truthful health notification and complete medical information if incomplete, you need to undergo a medical examination at a hospital designated by the Hong Kong insurance company.

As for Hong Kong Savings and Participation Insurance, the requirements are more relaxed. For huge policies, health notification and proof of funds or income are required.

Q: Can I get a refund of premium if I surrender my Hong Kong insurance policy?

A: When you surrender your Hong Kong insurance policy, the cash value is returned to you. Usually the cash value of the first 3 years of Hong Kong insurance is very low or even no cash value. If you surrender your policy at this time, there is no benefit and no premium will be refunded. You must be rigorous and well-considered when taking out an insurance policy.

Q: Can I get my premium back if I regret taking out the policy?

A: Hong Kong insurance companies need to refund the full premium (except for investment-linked insurance). After the cooling-off period, the refund is based on the current value of the insurance.

Q: Can I take out Hong Kong insurance for my newborn child? Do I need the baby to go in person?

A: Babies from any country can be insured in Hong Kong after 14 days of birth!

Children under the age of 18 do not need to be physically present in Hong Kong to be insured; a guardian can bring along the child's birth certificate.

Through the introduction of this article, I believe you have a better understanding of Hong Kong insurance. When purchasing an insurance policy, be sure to study the terms and conditions carefully to understand the scope of coverage and exclusions so that you can get real protection when you need it. At the same time, you should also choose an insurance plan that suits your financial situation and needs.