HONG KONG, April 26, 2023 /PRNewswire/ — With Hong Kongers becoming more health-conscious, more and more people are taking an active approach to protecting their health, and purchasing critical illness insurance is the preferred choice for many. Critical illness insurance is a risk management tool that provides fixed compensation in the event of a specific serious illness of the insured and can be used without restrictions. 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.
Consider 3 points before finalizing the CI policy
Key Point #1: Defining “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 list which illnesses are covered by critical illness insurance, but there may be some differences in definitions between different providers.
When comparing different critical illness products, the coverage can be summarized as follows:
Definitely Covered – Serious illnesses covered by almost all insurance companies, such as cancer, stroke and heart disease.
Mainly Covered – Serious illnesses covered by most companies such as: B. carcinoma in situ, renal failure and Parkinson’s disease.
Particular Critical Illnesses – Rare diseases that are only covered by a few critical illness insurance policies, such as: B. Elephantiasis and Chagas disease.
Key Point #2: Exclusions from Critical Illness Coverage
To prevent abuse of insurance policies, most critical illness insurance plans have exclusions. For example, illnesses that first appear during a waiting period, pre-existing conditions and illnesses caused by viruses due to a weakened immunity are usually excluded from serious illness insurance. Even if the policyholder unfortunately suffers from these diseases, the insurance company will not pay compensation.
The story goes on
It is important to note that specific exclusions may vary between different critical illness insurance policies. Some insurance companies have a waiting period of around 30 days, while others can have a waiting period of up to 90 days. It is recommended that you carefully read and understand the compensation criteria before purchasing to avoid disputes.
Key Point #3: “Multiple Claims” vs. “One-time Coverage”
Critical illnesses are more prone to recurrence compared to other illnesses. As such, many insurance companies offer “multiple” or even “uncapped” critical illness insurance indemnification mechanisms outside of “one-off” plans, allowing the policyholder to receive multiple payouts with a single premium, further increasing coverage leverage.
The critical illness insurance with “single coverage” only provides for a one-off payment to the policyholder, which is usually 100% of the sum insured. On the other hand, “multiple loss” critical illness insurance offers the policyholder more than one payout, and the payout can be 100% of the insured amount or a specified percentage, depending on the policy terms of the particular insurance company.
Multiple applications help to manage high-risk relapse situations
Not all diseases can be cured, and serious diseases are no exception. Even if patients recover, they can still relapse after several years.
Using the example of the three major critical diseases (heart disease, stroke and cancer), a 20-year follow-up study found that nearly one-third of young patients with coronary artery disease relapse and even develop serious adverse cardiovascular diseases with continuous drug therapy. At the same time, the likelihood of stroke recurrence is also high, since about 30% of people will have another stroke within 5 years, with more serious consequences than the first time. Even patients who undergo surgical treatment for early-stage cancer have about a 20% chance of recurrence in the future.
If you are unfortunately diagnosed with a critical illness listed in the policy, Critical Illness Insurance may only provide cover for the first claim and cover will end immediately thereafter. Because the policyholder has been diagnosed with a critical illness and is considered a person with a higher health risk, it is almost impossible to purchase other critical illness insurance policies in the future. If they unfortunately experience a recurrence of a critical illness or other serious illnesses in the future, they can only rely on other health insurance plans such as VHIS, which only cover actual costs incurred on a reimbursement basis.
On the other hand, if critical illness insurance offers “multiple claims,” they don’t have to worry about coverage ending after the initial diagnosis of critical illness. You can continue to enjoy critical illness coverage and build a safer health protection network that eases future worries.
Bowtie Term CI offers multiple claims at affordable premiums
Critical illness insurance can be divided into ‘savings’ and ‘protection only’ policies. Even with the same amount of coverage, the premium differences between the two can be significant. For example, with coverage of HK$1 million, Bowtie’s critical illness insurance premiums are 19 times lower than traditional savings policies^, not to mention that policyholders can pay monthly with no mandatory elements. Also, they can cancel the policy at any time with no financial loss, making it flexible and convenient.
In addition, Bowtie Critical Illness Insurance offers a unique “38+4” compensation criterion. As well as covering 38 common critical illnesses, Bowtie also offers protection for ‘terminal illnesses’, ‘permanent total disability’, ‘inability to live independently’ and ‘severe medical conditions’. This comprehensive coverage protects against both known and unknown diseases, providing clients with pure protection at a competitive price while providing multiple safeguards for critical diseases. For the top three major medical conditions (cancer, stroke and heart disease) up to 5 claims can be made with each payout at 100%.
It’s also important to note that the definition of “multiple claims” varies by critical illness plan. Some plans may only offer a one-time payout for each critical illness diagnosed, while others may only offer protection against cancer recurrence, which is a relatively narrow scope of coverage. When choosing critical illness insurance, remember to read the terms and conditions carefully to avoid disputes over a claim.
In addition to Critical Illness Insurance, Bowtie currently offers VHIS, Term Life, Accident Insurance, Cancer Insurance and Group Health Insurance, all of which are “no commission” term insurance. The aim is to allocate the majority of the policyholder’s premium payments to his protection and to make real protection more accessible.
Bowtie Life Insurance Company Limited is an accredited life insurance company and Hong Kong’s first-ever virtual insurer to be accredited under the Fast Track Pilot Scheme. Through the use of modern technology and medical expertise, Bowtie provides a commission-free, convenient online platform for customers to offer, apply for and claim health insurance plans certified by the Health Department under the Voluntary Health Insurance Scheme (VHIS).
In addition, Bowtie has also entered everyday life by creating One-stop Primary Care Center Bowtie & JP Health and Asian Health Hub Gobowtie. Bowtie is backed by Sun Life Financial, Mitsui & Co., Ltd and endorsed by leading international reinsurers.
Stay tuned to www.bowtie.com.hk.
^ Calculated based on the standard premium of a 35-year-old male non-smoker insured with a $1 million Bowtie Term Critical Illness sum insured; Term Critical Illness Insurance: Data is the standard premium of 3 different critical illness insurances in the market on March 10, 2022; Critical Illness Savings Insurance: Data is the standard premium of 6 different critical illness plans (18-20 year premium contribution period) in market as of March 10, 2022.
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SOURCE Bowtie Life Insurance Company Limited