HONG KONG, April 26, 2023 /PRNewswire/ -- With the increasing awareness of health among Hong Kong people, more and more people are taking an active approach to protect their health, and purchasing critical illness insurance is the preferred choice for many. Critical illness insurance is a risk management tool that provides a fixed amount of compensation when the insured person suffers from a specified serious illness, and can be used without restriction. Compared with other critical illness insurance products, Bowtie's critical illness insurance has a unique market design that brings customers innovation, low premiums, and higher protection.
Be Aware of 3 Points Before Finalizing CI Policy
Key Point #1: Definition of "Critical Illness"
There are many different critical illness insurance products available in the Hong Kong market, and each plan has its own definition of "critical illness." If the policyholder does not carefully read the terms and conditions before purchasing, there may be misunderstandings during the claims process, or even situations where the policy is not paid out.
Typically, most insurance companies will list which illnesses are covered under the critical illness policy, but there may be some variation in definitions between different providers.
When comparing different critical illness products, the coverage can be summarized as follows:
Key Point #2: Exclusions of Critical Illness Coverage
In order to prevent abuse of insurance policies, most critical illness insurance policies have exclusions. For example, illnesses that first appear during a waiting period, pre-existing conditions, and illnesses caused by viruses due to weakened immunity, are usually excluded from critical illness coverage. Even if the policyholder unfortunately suffers from these illnesses, the insurance company will not provide compensation.
It is important to note that the specific exclusion clauses can vary between different critical illness insurance policies. Some insurance companies may have a waiting period of about 30 days, while others may have a waiting period of up to 90 days. It is recommended to carefully read and understand the compensation criteria before purchasing to avoid disputes.
Key Point #3: "Multiple Claims" vs. "One-time Coverage"
Compared to other illnesses, critical illnesses are more prone to relapse. Therefore, many insurance companies provide "multiple" or even "unlimited" critical illness insurance compensation mechanisms outside of "one-time coverage" plans, allowing the policyholder to receive multiple payouts with a single premium, further enhancing the leverage of the insurance coverage.
Critical illness insurance with "one-time coverage" only provides a single payout to the policyholder, which is usually 100% of the sum insured. On the other hand, critical illness insurance with "multiple claims" provides the policyholder with more than one payout, and the payout amount may be 100% of the sum insured or a specified percentage, depending on the policy terms of each insurance company.
Multiple Claims Helps Deal with High-risk Relapse Situations
Not all diseases can be cured, and critical illnesses are no exception. Even if patients recover, they may still experience a relapse after several years.
Taking the three major critical illnesses (heart disease, stroke, and cancer) as an example, a 20-year follow-up study found that nearly one-third of young coronary heart disease patients will experience a relapse and develop severe adverse cardiovascular diseases even with continuous medication therapy. At the same time, the chance of stroke recurrence is also high, with about 30% of people experiencing another stroke within 5 years, with more severe sequelae than the first time. Even patients who undergo surgical treatment for early-stage cancer have a chance of relapse of about 20% in the future.
If you are unfortunately diagnosed with a serious illness specified in the policy, the "one-time coverage" critical illness insurance may only provide coverage for the first claim, and the coverage will be terminated immediately afterwards. As the policyholder has been diagnosed with a critical illness and is considered a higher health risk individual, it is almost impossible to purchase other critical illness insurance policies in the future. If they unfortunately experience a relapse of critical illness or other serious illnesses in the future, they can only rely on other medical insurance plans such as VHIS that cover solely the actual expenses incurred on a reimbursement basis.
On the other hand, if the patient's critical illness insurance policy offers "multiple claims," they do not have to worry about the coverage ending after the first diagnosis of a critical illness. They can continue to enjoy critical illness coverage and establish a more secure health protection network, relieving future worries.
Bowtie Term CI offers Multiple Claims at Affordable Premium
Critical illness insurance can be categorised into "savings" and "pure protection" policies. Even with the same coverage amount, the difference in premiums between the two can be significant. For example, with a coverage amount of HK$1 million, Bowtie's term critical illness insurance premiums are as low as 19 times less than traditional savings-type policies^, not to mention the policyholders can pay monthly without any binding elements. They can also cancel the policy at any time without incurring any financial losses, making it flexible and convenient.
In addition, Bowtie's term critical illness insurance offers a unique "38+4" compensation criteria. In addition to covering 38 common critical illnesses, Bowtie also provides protection for "terminal illnesses," "permanent total disability," "inability to live independently," and "major medical conditions." This comprehensive coverage protects against both known and unknown illnesses, providing customers with pure protection at a competitive price while also offering multiple protections for critical illnesses. For the three major critical illnesses (cancer, stroke, and heart disease), up to 5 claims can be made with each payout at 100%.
It is also important to note that the definition of "multiple claims" varies among different critical illness insurance plans. Some plans may only provide a one-time payout for each diagnosed critical illness, while others may only provide protection for cancer relapse, which is a relatively narrow coverage scope. When choosing a critical illness insurance policy, be reminded to carefully read the terms and conditions to avoid a dispute arises regarding a claim.
In addition to critical illness insurance, Bowtie currently offers VHIS, term life insurance, accident insurance, cancer insurance, and group medical insurance, all of which are "zero-commission" term insurance plans. The aim is to allocate most of the policyholder's premium payments to their protection, making genuine protection more accessible.
About Bowtie
The Bowtie Life Insurance Company Limited is an authorised life insurance company and Hong Kong's very first virtual insurer approved under the Fast Track pilot scheme. Through the use of modern technology and medical expertise, Bowtie offers a commission-free convenient online platform for customers to quote, apply and claim for health insurance plans certified by the Health Bureau under the Voluntary Health Insurance Scheme (VHIS).
In addition, Bowtie has also gone into everyday life by creating the One-stop Primary Care Centre Bowtie & JP Health and the Asian Health Hub Gobowtie. Bowtie is backed by Sun Life Financial, Mitsui & Co., Ltd and supported by leading international reinsurers.
Stay up to date at www.bowtie.com.hk.
^Calculated based on the standard premium of a 35-year-old non-smoking male insured with a sum assured of $1 million of Bowtie Term Critical Illness ; Term Critical Illness Insurance: Data is the standard premium of 3 different critical illness insurances in the market on March 10, 2022; Savings Critical Illness Insurance: Data is the standard premium of 6 different critical illness insurances (18-20 years of premium contribution period) in the market on March 10, 2022.
