One: Savings and dividend insurance
Savings and dividend products based on education, home ownership, pensions, generally 5 years of payment, the funds survival period are in the 10 years on. Hong Kong products in the annual compound interest return of about 6%, the guaranteed return of about 2%; domestic insurance annual compound interest return of about 4%, the guaranteed return of about 2%. The guaranteed part is basically the same, the difference is mainly reflected in the floating part, usually referred to as the dividend.
Domestic insurance plans will have high, medium and low dividend assumptions, and annual dividend reports will be mailed to inform policyholders of the current year's dividends and accumulated dividends. Hong Kong also mails dividend reports, but Hong Kong will review the actual dividends with the expected dividends on the policy, so that customers are very clear about the actual situation of dividends. All companies in Hong Kong place great importance on meeting their dividend targets, which are usually 100% or slightly higher for the year, with the exception of years of major economic crisis when they may fall below the expected value.
How much difference is there between a 4% and 6% annual return, assuming the initial capital is both $10,000, and after 50 years it is $71,000 and $184,000 respectively, with the latter more than 2.6 times higher than the former.
Second: life protection
The same amount of coverage, Hong Kong's accident insurance and domestic premiums are almost the same (Hong Kong accident insurance for domestic customers to increase the fee by 100%), Hong Kong's term life insurance premiums than the domestic premiums cheaper than 20-50%; Whole life insurance Hong Kong than the domestic premiums cheaper than 20-30%, the long-term annual compounding returns than the Domestic products are generally higher than 2 or 3 percentage points. With the example of the previous savings and dividend insurance, it is easy for customers to judge the weight of the 2 or 3 percentage points.
Three: Critical Illness Insurance
Hong Kong Critical Illness Insurance covers a total of about 100 types of minor and major illnesses, while domestic Critical Illness Insurance covers a total of about 50 types of minor and major illnesses, and Hong Kong Critical Illness Insurance covers a wider range of illnesses in terms of coverage. The same amount of coverage Hong Kong critical illness is generally 20-30% lower than the domestic insurance premiums.
In recent years, domestic insurance companies to the international advanced learning 'pace is very fast, there have been some more radical companies, such as Huaxia, critical illness insurance in the coverage of the types of diseases and premiums comparable to Hong Kong insurance. But the dividend part still can't break through the limitations of the system, the payout amount = sum insured + dividends, so Hong Kong insurance critical illness protection is still much better.
Four: Medical Insurance
Ordinary medical advice in the country to buy better, high-end medical Hong Kong advantage is obvious. This is especially true for those who are prepared to live abroad, recognize the quality of Hong Kong and international healthcare, or travel abroad frequently.
Hong Kong's high-end medical advantage lies in the premiums, coverage is comparable to the case of higher coverage, Hong Kong's general annual coverage of 20 million Hong Kong dollars, lifetime of 50 million Hong Kong dollars, some products are not lifetime limit. The same can be said for the other products, which are not available in the market, but are available in the market in the future.
V: Universal Life
Hong Kong's universal life insurance corresponds to the domestic product called universal life insurance. Universal life insurance is a combination of term life insurance and investment insurance. Universal life insurance is characterized by three flexible features:
1. Flexibility in payment, you can make a lump sum payment or irregular payment;
2. Flexibility in coverage, the amount of coverage can be adjusted within the approved range of the insurance company;
3. Flexibility in claiming, the value of the policy can be claimed at any time according to the need.
The advantage of universal life insurance in Hong Kong is that it can be paired with premium financing. Customers can invest a portion of their money or no money at all in a universal life insurance policy with a coverage of tens of millions of dollars or even more. Financing costs in Hong Kong are low, with private bank premium financing at only about 2% per annum, while the guaranteed return on an insurance company's universal life insurance policy is generally 2%?2.5%, with total returns generally around 4% per annum. For high net worth clients, if they are already clients of a private bank in Hong Kong, they can use their assets in the private bank as collateral, and if they have enough assets, they can buy a high level universal life insurance policy without paying a penny, or if they don't have enough assets, they have to pay a portion of the premium themselves. The guaranteed return of the insurance company is basically the same as the interest rate of bank loans, and the insured enjoys a high level of protection while earning a net spread of 2 points. Of course, this is the threshold, the private bank's starting price of 1 million dollars.