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Compare Find And Buy The Best Low Cost Affordable Life Insurance Plans In Hong Kong

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Compare Find And Buy The Best Low Cost Affordable Life Insurance Cover Comparison In Hong Kong 

Here at Private Wealth Management Hong Kong we have the reputation of putting our clients’ interests first and above everything else.

This site is designed with our clients and our reputation in mind.

Compare Find And Buy The Best Low Cost Affordable Life Insurance Comparison In Hong Kong

Life Insurance

This site will allow you to Compare, Find, and Buy The Best Low Cost Affordable Priced Life Insurance Plans In Hong Kong.

We only use the Top Life Companies that are available to you in Hong Kong, this ensures that you get the Best Life Insurance with the Cheapest Life Insurance Quotes.

The main types of Life Insurance and Critical Illness Cover are explained here:

  1. Life Insurance
  2. Term Life Insurance
  3. Universal Life Insurance
  4. Whole Life Insurance
  5. Critical Illness Insurance

In addition we offer the Best Health Insurance in Hong Kong

Why don’t you go ahead and get in touch with us today and put us to the test.

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Hong Kong Leading Life Insurance Broker Agent

We are recognized and have gained the reputation of being Hong Kong leading Life Insurance Broker Agent.

Why? We GUARANTEE that we will not be beaten on price, this ensures that you get the most Life Insurance and / or Critical Illness Insurance cover for your money, and therefore the most protection for yourself and your family.

This together with our market leading levels of Customer Service has for many people in Hong Kong made us the first choice Life Insurance Broker Agency in Hong Kong.

Furthermore for your protection and peace of mind we only use the Top Life Companies that not only offer the Best Insurance Cover but have some of the highest credit ratings in the world.

To Compare Health Insurance In Hong Kong were we provide Health Insurance Comparisons form the leading Hong Kong and International Health Insurance providers of Global Health Insurance.

So please get in touch and experience the difference we can make to your life plans.

Life Insurance Is Our Work – Its what we do

Helping you to secure your ongoing financial future, for you, your family, and your dependents.

Why Chose Us For Your Life InsuranceCritical Illness Insurance and Health Insurance;

  1. We Offer Independent Advice, Service, and Products
  2. We Provide FREE No Obligation Quotations – so your can judge for yourself

Why don’t you get in touch so you can experience the difference that we provide for our clients;

  1. A Dedicated Account Manager
  2. Unrivaled Service Levels
  3. We Put Our Clients FIRST In Everything We Do – Every time with no exceptions

Come along and experience the difference.

Life Insurance Has Many Uses and Benefits

The video’s provide a good overview of the many uses and benefits of Life Insurance.

Although they are directed at the Philippines we can assure you that the same problems, issues and solutions, are present and available all over the world – no matter who you are, what you do for a living or where you live.

Compare Find And Buy The Best Low Cost Affordable Life Insurance And Critical Illness Plans In Hong Kong

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Why Should I Get Life Insurance

What Do People Think About Life Insurance

Why Do I Need Life Insurance

How Can Life Insurance Help Me Achieve My Dreams

What Life Insurance Is Right for You

Term Life Insurance

Term life insurance or term assurance is life insurance that provides Life Insurance at a fixed cost typically monthly or annual premiums for a limited period of time known as the relevant term for example 5, 10, 20 years or to say age 65; after that period (the term) the life insurance expires.

If further life insurance is required at the end of the term the cost and availability of further life insurance cover is no longer guaranteed. So the policy holder (the life insured) either loses the life insurance cover or if possible obtains further life insurance coverage with different payments (cost) and / or conditions – reflecting for example the increase in age and / or health conditions.

If the life insured dies during the term, the death benefit will be paid to the nominated beneficiaries for example the life insured spouse or children, or perhaps a charity.

Typically term insurance is the least expensive way to purchase a substantial amount of life insurance death benefit per premium dollar basis over a specific term.

Term life insurance can be contrasted to whole life, universal life, and variable universal life, which guarantee coverage at fixed premiums for the lifetime of the covered individual unless the policy owner allows the policy to lapse.

Term insurance is not generally used for estate planning needs or charitable giving strategies but is used for pure income replacement needs for an individual’s beneficiaries. Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are kept up to date and the contract has not expired, and does not provide for a return of premiums at the end of the term (but see Return Of Premium Term Insurance below).

An analogy being building insurance (that includes insurance against fire) for example if the insurance premiums are maintained and the policy is in force at the time of a fire at the insured building. Then the insurance policy will pay out the sum insured (the insurance).

Similarly with life insurance for example if the life insurance premiums are maintained and the policy is in force at the time the life insured dies. Then the insurance policy will pay out the sum insured (the insurance).

When To Consider Term Life Insurance

Because term life insurance is a pure death benefit, its primary use is to provide life insurance covering the financial responsibilities of the life insured or his or her beneficiaries.

For example Life insurance can insure the following consumer debt, dependent care, university education for dependents, funeral costs, and mortgages.

Its important to remember that term insurance provides insurance for a specific term (period of time). Term life insurance is therefore particularly suited to cover a person’s life insurance requirements that end at a particular time for example a mortgage with a term of 20 years or school fees for a new born child covering say 21 years.

If the required term of insurance cover is unknown for example estate planning or the absolute wish to leave a beneficiary a sum insured (a specified amount of money) on death then perhaps Whole Life Insurance or Universal Life Insurance should be considered.

Types Of Term Insurance

Annual Renewable Term

The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the life insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.

Because the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.

One of the main challenges to renewal experienced with some of these policies is requiring proof of insurability. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.

As a result some policies offer a feature called guaranteed re-insurability that allows the insured to renew without proof of insurability.

A version of term insurance which is commonly purchased is annual renewable term (ART).

In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years for example 5, 10 years or until the age of 65.

Although initially offering low cost life insurance premiums, as the life insured increases in age the premiums increase with each renewal period, eventually becoming potentially unaffordable.

Level Term Insurance

The most common type of term insurance is level term insurance.

With term life insurance the premium is guaranteed to be the same for a given period of years for example 10, 15, 20, 30 years or to age 65.

With level term insurance the premium paid each year remains the same for the duration of the contract (the term).

The longer the term the higher the fixed premium amount (cost). This is because all other things being equal the old a person is the more likely they are to make a claim.

Some term life policies include an option to convert the term life insurance policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy.

Commonly this option is beneficial were a person would like a Universal Life or Whole Life policy but cannot currently afford the premiums, here then they can take out a term life insurance policy and convert to a Universal Life or Whole Life policy at a later date with guaranteed insurability.

Decreasing Term Insurance (DTA)

Decreasing term insurance is often bought to clear a specific debt (typically a repayment mortgage) that is itself reducing in the amount outstanding over time, with the policy paying out in the event of the death of the borrower or his or her partner (here a joint life DTA policy may be beneficial).

The term is usually selected to align with the associated debt or event; for example a DTA can be used for insuring school fees as the child become older there are fewer costs to their education as an 18 years old student may only have 3 years of education left to fund as opposed to a 10 year old with say 11 years.

So DTA is useful if a large sum insured would be required immediately but over time a smaller amount would be acceptable.

How Does DTA Differ From Level Term Insurance?

Unlike level term life insurance cover, the amount of life insurance cover is reduced over the term – typically pro-rata over the term.

As noted, decreasing term policy can be cheaper than level term insurance because the sum insured goes down rather than staying the same throughout the term, reducing the risk of the insurer having to make a big pay-out of a large sum insured.

So Is DTA Right For You?

Decreasing term life insurance is popular with people on a tight budget as the monthly payments are lower than those you would pay with level term cover – here then the choice of DTA is on affordability.

But many people prefer to pay for level term insurance, even though they have for example a repayment mortgage.

The logic is that, if they set a sum insured that matches their mortgage debt but which stays at the same level as the mortgage debt falls, then they will have additional insurance that could be used for other purposes following a claim for example cash for your beneficiaries.

Moreover many people choose a level sum insured (life insurance) that is greater than their mortgage debt, so they know that their beneficiaries will be better taken care in the event of a claim.

In summary, for many people with dependents the difference in the premiums between decreasing and level term insurance is small and so they opt for a level term life insurance policy which would offer a larger sum insurance to be paid out on a life insurance claim over time (the term) to their dependents (beneficiaries).

Return Of Premium Level Term Insurance

This is a type of term life insurance coverage that provides a return of some or all of the premiums paid during the policy term if the insured person outlives the duration of the term of life insurance policy.

For example, if an individual takes out a 10 year return of premium level term life insurance policy and the 10 year term has expired with no death claim, the premiums paid (cost) by the owner of the policy will be returned to the policy owner.

The premiums for a return premium term life plan are usually much higher than for a regular level term life insurance policy but offer the benefit of the return of premiums at the end of the life insurance term were no claim has been made.

Universal Life Insurance

Universal life insurance is a type of permanent life insurance, an alternative being Whole Of Life Insurance.

Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy.

The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month.

Interest credited to the account is determined by the insurer, but has a contractual minimum rate (for example 2%).

Typically these types of policies offer the advantage of guaranteed level premiums throughout the policy.

When To Consider Universal Life Insurance

Universal Life insurance can be used as a substitute and in similar circumstances to a Whole of Life policy for example:

  1. Final Expenses, such as a funeral, burial, and unpaid medical bills
  2. Income Replacement, to provide for surviving spouses and dependent children
  3. Debt Insurance, to pay off personal and business debts, such as a home mortgage or business operating loan
  4. Estate Liquidity, when an estate has an immediate need for cash to settle federal estate taxes, state inheritance taxes, or unpaid income taxes on income in respect of a decedent (IRD).
  5. Estate Replacement, when an insured has donated assets to a charity and wants to replace the value with cash death benefits.
Business Succession and Continuity
  1. Key Person Insurance
  2. Cross Purchase Buy Sell Agreements

Whole life insurance alternative, where there is any need for permanent death benefits, but little or no need for cash surrender values.

Universal Life Insurance

Many people use life insurance, and in particular cash value life insurance, as a source of benefits to the owner of the policy (as opposed to the death benefit which provides benefit to the beneficiary). These benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning.

Universal Life Insurance Loans

Most universal life policies come with an option to take a loan on certain values associated with the policy. These loans require interest payments which are paid to the insurance company.

Outstanding loans will be deducted from the death benefit at the death of the insured.

Universal Life Insurance Withdrawals

Most universal life policies come with an option to withdraw cash values rather than take a loan.

However withdrawals will affect the long-term viability of the plan. The cash values removed by loan are no longer earning the interest expected, so the cash values will not grow as expected.

Contribution Types For Universal Life Insurance
Universal Life Insurance Single Premium

A Single Premium Universal Life Insurance is paid for by a single, substantial, initial payment.

Universal Life Insurance Fixed Premium

Fixed Premium Universal Life Insurance is paid for by periodic premium payments associated with a no lapse guarantee in the policy. Generally these payments will be for a shorter period of time than the policy is in force; for example payments may be made for 10 years, with the intention that thereafter the policy is paid-up. But it can also be permanent fixed payment for the life of policy.

Universal Life Insurance Flexible Premium

Flexible Premium Universal Life Insurance allows the policyholder to vary their premiums within certain limits.

Typically Universal Life Insurance policies are flexible premium, but each variation in payment has a long-term effect that must be considered. In order to remain active, the policy must have sufficient available cash value to pay for the cost of insurance. Higher than expected payments could be required if the policyholder has skipped payments or has been paying less than originally planned. It is recommended that yearly illustrative projections be requested from the insurer so that future payments and outcomes can be planned.

Whole Life Insurance (Whole Of Life Insurance) (WOL)

Whole life Insurance, or whole of life assurance also called “straight life” or “ordinary life” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided the required premiums are paid, or to the maturity date for example typically to age 100 although some WOL policy can remain in force until death at any age.

The premiums are fixed, based on the age of the life insured on the in force date (the date the policy comes into effect), and usually do not increase with age. The owner policy normally pays premiums until death, except for limited pay policies which may be paid-up for example 10 years, 20 years, or at age 65, with the life insurance cover continuing to the death of the life insured or until maturity of the life insurance policy.

Whole life insurance belongs to the cash value category of life insurance policies, which also includes Universal Life Insurance.

The other major form of life insurance is Term Life Insurance, which may be individual term policies or group term certificates. As a general rule, term life is intended for temporary use and has no cash value.

Whole life Insurance Death Benefit

The death benefit of a whole life policy is normally the stated face amount (the sum insured).

However, if the policy is “participating”, the death benefit will be increased by any accumulated dividend values and / or decreased by any outstanding policy loans. (see loans below) Certain riders, such as Accidental Death Benefit may exist, which would potentially increase the benefit.

Whole life Insurance Maturity

Typically a whole life policy is said to “mature” at death of the life insured or the maturity for example the life insured reaching the age of 100, whichever comes first.

However some whole life policies have longer maturity ages, if any at all, were the insurance policy is designed to pay out the sum insured on the death of the life insured.

Increased maturity ages have the advantage of preserving the tax-free nature of the death benefit. In contrast, a matured Whole Of Life policy may have substantial tax obligations in certain jurisdictions.

When To Consider Whole Of Life Insurance
Whole life Insurance Personal and Family Life Insurance

Individuals may find whole life attractive because it offers coverage for an indeterminate length of time (this is important because nobody knows when they are going to die). It is the dominant choice for insuring so-called “permanent” insurance needs, including:

  1. Funeral expenses
  2. Estate planning
  3. Surviving spouse income
  4. Supplemental retirement income

Individuals may find whole life less attractive, due to the relatively high premiums, for insuring:

  1. Large debts
  2. Temporary needs, such as children’s dependency years
  3. Young families with large needs and limited income

In the second category, level term insurance is generally considered more suitable and has played an increasingly larger role in recent years.

Whole life Insurance For Corporations and Businesses 

Businesses may also have legitimate and compelling needs, including funding of:

  1. Key Person Life Insurance
  2. Buy-Sell agreements
Typical Characteristics Of A Whole Of Life Insurance Policy
Level Premium Whole Of Life Insurance

Level premium whole life insurance provides lifetime death benefit coverage for a level premium (cost).

Whole life premiums are much higher than term insurance premiums. However because term insurance premiums rise with increasing age of the insured, the cumulative value of all premiums paid under whole and term policies are typically roughly equal if the policy continues to average life expectancy.

Whole Of Life Insurance Loans

Whole Of Life insurance contracts typically stipulate that the policyholder is entitled to a cash value reserve that is part of the policy and guaranteed by the company.

This cash value can be accessed at any time through policy loans that are received income tax-free and are paid back according to mutually agreed-upon schedules. These policy loans are available until the insured’s death.

If any loans amounts are outstanding—have not yet been paid back—upon the life insured’s death, the insurer subtracts those amounts from the policy’s sum insured benefit and pays the remainder to the policy’s beneficiaries.

The advantages of whole life insurance are its guaranteed death benefits; guaranteed cash values; fixed, predictable premiums; and mortality and expense charges that do not reduce the policy’s cash value.

The Death Benefit amounts of whole life policies can sometimes be increased through accumulation and / or reinvestment of policy dividends, though these dividends are not guaranteed and may be higher or lower than earnings at existing interest rates over time.

Whole Of Life Insurance Reserves

The over-payments inherent in the Whole of Life insurance level premium system means that a large portion of expensive old-age costs are prepaid during a person’s younger years.

Life insurance companies are typically required set up reserve funds to account for these over-payments, which represent promised future benefits.

Whole Of Life Insurance Cash Values

Cash values are an integral part of a whole life policy, and reflect the reserves necessary to assure payment of the guaranteed death benefit.

Thus, “cash surrender” (and “loan”) values arise from the policyholder’s rights to surrender the contract and reclaim a share of the reserve fund attributable to his policy, the cash policy surrender value.

Types Of Whole Of Life Insurance 
Whole life Insurance Non-participating

All values related to the policy (death benefits, cash surrender values, premiums) are usually determined at policy issue, for the life of the contract, and usually cannot be altered after issue. This means that the insurance company assumes all risk of future performance versus the actuaries’ estimates. If future claims are underestimated, the insurance company makes up the difference. On the other hand, if the actuaries’ estimates on future death claims are high, the insurance company will retain the difference.

A non-participating Whole Of Life insurance policy is issued by pubic liability companies (PLCs).

Whole life Insurance Participating

In a participating policy (also known as “par” and “with-profits policy”, the insurance company shares the excess profits (divisible surplus) with the policyholder in the form of annual dividends. Typically these “refunds” are not taxable because they are considered an overcharge of premium (or “reduction of basis”).

Participating policies are typically (although not exclusively) issued by Mutual life insurance companies. However, Stock companies sometimes issue participating policies.

Whole Of Life Insurance Variations
Whole life Insurance Single Premium

A form of limited pay, where the pay period is a single large payment up front.

Whole life Insurance Interest Sensitive

This type is fairly new, and is also known as either “excess interest” or “current assumption” whole life. The policies are a mixture of traditional whole life and universal life. Instead of using dividends to augment guaranteed cash value accumulation, the interest on the policy’s cash value varies with current market conditions. Like whole life, death benefit remains constant for life. Like universal life, the premium payment might vary, but not above the maximum premium guaranteed within the policy.

Life Insurance A Personal Service

We pride ourselves on our Market Leading Customer Service and believe that this is what has earned us the reputation of the go to people for Life Insurance In Hong Kong.

Of course it helps that we also have the Best Life Insurance Plans at the lowest cost for our clients from the Best Life Company.

We have operated in the Wealth Management for over 23 years and we bring this level of commitment and experience to all of your customers.

We only offer a Personal Service which means that all of our clients have their own dedicated Wealth Manager, we have found that people like the continuity that this brings, and all of our wealth managers have over 10 years of experience in the Life Insurance Financial Services. This ensures that all of our clients receive Expert Specialist Life Insurance Advice.

So please get in touch and experience the difference that we bring to all of our clients.

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