Purchase of insurance policy is mainly for risk management and hence prevention of significant economic losses. That means we can just spend a small amount of money to safeguard ourselves and our family from financial needs. Although it is always the case that we will be leading a peaceful life, it is inevitable that we may face some unexpected downtimes and even experience illnesses and death someday.
That being the case, we can proactively manage our needs in advance to protect us and our families from hardship.
So, what would be the unique benefits that an insurance policy can bring to a policyholder, especially for those which are issuing in Hong Kong?
1. Competitive Product Range with Comprehensive Protection
When comparing with some other countries, insurance products in Hong Kong have gone through decades of evolution and have become an innovative and diversified market to meet the demanding needs of customers in the Hong Kong. Especially with the rise of aging population, products in relation to critical illnesses and health protection have continuously been modified and enhanced to meet the customers’ needs.
2. No Estate Tax Nor Value Added Tax in Hong Kong
Hong Kong is a place with low tax rate. Currently, there is no estate tax nor value added tax being charged in Hong Kong. This kind of advantages can definitely provide a certain degree of attraction for many high net worth individuals to pass on wealth to their next generations through insurance policies.
3. Managed and Regulated Claims Services
Sophisticated procedures are in place for policy underwriting in Hong Kong and claims processing are complied with contract provisions with detailed service guidelines in place. After sales services are generally with professional standard.
4. Asset Allocation
Life insurance policies in Hong Kong are mainly with savings or investment nature. The investments under the products will be allocated to different asset categories at different regions, allowing the insurance policies to achieve diversified asset allocation.
(This is a translation only. The original article is written in Chinese and you may refer to the original version here for exact meaning).
