Life insurance cover the financial needs of the beneficiary after the insured die. It pays them either a lump sum or regular payments.
The common types of policies available in Hong Kong: 1.) Term Life policy, 2.)Whole life policy and, 3.) Endowment policy
- Term life policy: a lump sum will be paid upon the insured death if it occurs within a period of time;
- Whole life policy: generate a cash value and non-guaranteed dividend during lifetime; a lump sum benefit will be paid to the beneficiary upon the insured death. In addition, if the policy was surrendered too early, the cash value and dividend recovered may not be suufficient to cover the amount of premium paid.
- Endowment policy: cash value and non-guaranteed dividend will be generated and increased during the policy term, a lump sum will be paid upon reaching an agreed date;
Factors affecting the premiums
- age, health condition
- habits
- type of policy chosed and covered amount
Life Protection Coverage Calculator (Sources: IFEC)
https://tool-insurance.ifec.org.hk/en/main/index.jsp
