The difference between Hong Kong insurance and mainland insurance. Is it cost-effective to buy insurance in Hong Kong?

Whether it is cost-effective or not depends on your personal situation. If you often go abroad or plan to immigrate, you must learn more about it. If it is a general configuration, you can also consider it based on your own situation.

Advantage 1: The company has a long history and is fully competitive

Hong Kong’s insurance industry has a history of 150 years, and the entire market is very developed. Insurance giants from the United States and Europe will set up branches in Hong Kong. mechanism. In such a competitive market, both products and services have been greatly improved. Hong Kong insurance has experienced the problems that China's insurance industry is currently facing in the 1990s. Compared with the domestic market, Hong Kong's insurance industry is more mature and standardized. .

Advantage 2: Low rates and cheap prices

In addition to the higher life expectancy in Hong Kong than in China, the most important point is that the pricing interest rate of Hong Kong insurance is between 3.5% and 4.5%. The pricing interest rate is much higher than that of domestic products (the higher the pricing interest rate, the cheaper the premium). Taking critical illness products as an example, Hong Kong insurance is at least 20-30% cheaper than more than 70% of domestic product rates. In addition, many domestic insurance companies, relying on their channel and brand advantages, currently have no motivation to change, which has led to the impression that Hong Kong insurance is relatively cheap.

Advantage 3: Broad definitions of some diseases facilitate claims settlement

Before 2007, the definitions of critical illness in China were not uniform among different companies. The same malignant tumor may have different insurance companies’ claim settlement conditions. Differently, in addition to the mass incidents caused by a joint venture insurance company in Shenzhen due to claims disputes, the Insurance Association of China and the Chinese Medical Doctor Association jointly formulated the "Regulations on the Use of Disease Definitions for Critical Illness Insurance", which stipulates 25 types of high-incidence major diseases. disease, and the disease definition and claim standards cannot be different.

Compensation will only be paid when the diagnosis reaches the extent of the disease: such as malignant tumors, deafness in both ears, blindness in both eyes, severe third-degree burns, severe primary pulmonary hypertension, etc. These are easy to understand and will be compensated as long as the diagnosis is confirmed.

Compensation will only be paid when certain symptoms are reached: such as sequelae of stroke, end-stage renal disease, deep coma, paralysis, severe brain damage, and loss of language ability. These are more of a status agreement.

Compensation will only be paid after required surgeries: such as major organ transplantation or hematopoietic stem cell transplantation, coronary artery bypass grafting, heart valve surgery, aortic surgery, these are more about surgeries and treatments. Agreement.

After comparative analysis, the definitions of the most common serious diseases in China and Hong Kong are basically the same. However, for some diseases, Hong Kong insurance will be broader, which will be more beneficial to our policyholders.

Let’s take the sequelae of stroke as an example. Hong Kong only stipulates that the sequelae last for more than 24 hours, while the mainland requires 180 days. From this perspective, Hong Kong’s definition is more reasonable.

In fact, it cannot be said across the board that the definition of all diseases in Hong Kong is broad and claims are easy. If you really pay attention to this area, you can analyze and compare them item by item. Personally, I feel that Hong Kong insurance does have some advantages in this area.

Advantage 4: With dividends, the insured amount will increase

All critical illness products in Hong Kong have dividend income, and the most direct manifestation is that the insured amount will increase. Shenlanjun thinks this is the most attractive thing for mainland customers. For example, if we buy a domestic critical illness product with an insured amount of 500,000, we can see from the cash value table that even after 60 years, the insured amount of the domestic product is still 500,000. However, the insured amount of Hong Kong insurance will increase, and the insured amount may have become 800,000 or 1 million.

Hong Kong insurance companies have a wide range of investments, and insurance funds can be allocated globally. However, domestic insurance investment channels are limited, and the domestic stock market is sluggish, so there are few investment projects and channels. This directly results in the dividends of Hong Kong policies being much higher than those in the Mainland. The most direct manifestation is that the insured amount will increase.

Advantage 5: Overseas asset allocation

Because insurance policies in Hong Kong are denominated in US dollars and Hong Kong dollars, buying insurance in Hong Kong has become the simplest and easiest way for high-net-worth people from mainland China to cross the border. means of environmental asset allocation. Since 2015, the expectation of RMB depreciation has become stronger, and with Trump taking office and the Federal Reserve’s determination to raise interest rates, the strengthening of the US dollar is a clear trend. Therefore, in the past few years, going to Hong Kong Insurance to buy Hong Kong insurance and unlimited currency exchange has been a wonderful life for high-net-worth individuals.

As a high-net-worth group, the most important thing is not to make profits, but to avoid assets from being lost, and to ensure the stable appreciation of assets. Therefore, this is why the central bank continues to impose restrictions on insurance credit cards in Hong Kong, because capital outflows are too high. It’s serious