Details On
Life Insurance
Term Life Insurance
Term Life Insurance, also known as Term Life Assurance, covers you against your risk of death over a specific length of time.
When you apply for a Term Life Insurance plan in Hong Kong you will be given the option of selecting the length, or term, of the policy. If you die during the plan's term, or while the policy is in force then the Hong Kong Term Life Coverage will provide a lump sum payment to beneficiaries of your choice.
It should be noted that an HK Term Life insurance plan will only provide a death benefit if the insured individual dies during the term of the policy. For example, in the event that the insured party dies a single day after the expiration of the policy then no payment would be made to their beneficiary under the plan due to the lapse in coverage.
It should be noted that in a majority of cases a term insurance plan will normally end without resulting in a claim. As such, this is typically the least expensive type of life insurance plan available in Hong Kong.
Uses of Term Life Insurance in Hong Kong
This type of Hong Kong Life Insurance plan is not generally used for estate planning; if you are looking for a form of Life Insurance which can be used for estate planning purposes, LCF recommends considering an HK Whole of Life insurance policy.
Term Life Insurance in Hong Kong offers a pure death benefit; this means that the policy is wholly designed to provide a settlement only in the event of the insured party's death. Because of this a Term Life Insurance plan is normally used in Hong Kong to provide protection for the insured financial responsibilities to any dependents or beneficiaries.
This can include Funeral Costs, Mortgage Repayments, Child Education Funds, and Credit Card Debt, amongst other financial responsibilities which the insured individual may have held.
Length of Terms and Life Insurance Coverage
As previously mentioned, a Hong Kong Term Life Insurance policy will provide a death benefit over a specific length of time.
When applying for a Term Life Insurance policy you will normally be given the option of selecting the duration of coverage you are able to receive under the plan with typical Term lengths lasting 5, 10, 20, 30, or 35 years.
While the choice of the exact duration of the policy is normally left up to you, it should be noted that choosing a Term Life Insurance plan which provides a longer period of coverage will normally be more expensive than selecting a policy with shorter coverage durations. This is due to the fact that your risk of death will increase over time, meaning that the longer you hold a Term Life Insurance policy the more likely you are to die.
Group Life
and Key Man
Insurance
Key Man Insurance and Group Life Insurance are two forms of Life Insurance coverage which LCF is able to offer to Groups, Businesses and Companies in Hong Kong.
Specifically designed to reflect the needs of commercial organizations, Key Man and Group Life Insurance coverage in Hong Kong can protect your company against lowered productivity or loss of business in the event that a key member of staff dies or is unable to work.
Key Man Life Insurance
LCF is able to provide comprehensive Key Man Life insurance options to businesses in Hong Kong, China, and throughout the APAC region.
The success of any given company or organization will largely be dependent on the organization's members or employees. While businesses frequently protect their physical assets against loss or damage, including the physical structure of their office or the contents and equipment inside of it, many companies will forego insurance protecting the organization from the loss of a critical member of staff.
From founders of a Start-up company, specialists who have developed and are sustaining a business' strategy and direction in a key area, and top sales staff who bring in vital accounts to the organization, through to the entire senior management staff and members of the organization's board of directors, a key person can appear in many different roles throughout a business.
Losing a key person who is of critical value to a company can result in a number of extreme outcomes not in the least of which is a loss in the company's profits stemming from the absence of the individual. However, outside of a loss of profits are also a number of concerns for any organization; delays in completing business transactions and contracts, interruption of ongoing business and sales, loss of competitive advantage and direction, increased pressure on remaining staff, deterioration of employee morale, and recruitment expenses to replace the employee are all issues stemming from the loss of a single key employee.
Unlike Group Life Insurance cover, which is intended to provide a benefit to an employee's family in the event of the worker's death, a Key Man Life Insurance plan benefits the business against the loss of a vital employee.
Which Employees can be covered by a Key Man Insurance Policy?
Keyman Life Insurance coverage in Hong Kong is usually obtained by a business on the health or life of a staff member whose overall contribution, knowledge, or work is considered vital to the organization.
Employees often insured under a Key Man Insurance plan in Hong Kong can include:
Coverage Under an HK Key Man Insurance Policy
Key Man Insurance Coverage can compensate an organization against extended losses over a period of time when the insured employee is unable to work. This type of coverage will often provide temporary staff coverage, and can offer funds for the recruitment and training of replacement personnel.
In addition to this, Key Man Insurance Coverage can protect a company's profits in the event of a key member of staff being unable to work. This may include income offsets for lost sales if the individual was responsible for the organization's Sales Department.
Because this type of policy is designed to reflect the unique nature of your organization and employees, the actual coverage offered under a Hong Kong Key Man Insurance plan will be dependent on the activities of the Key Staff Member being insured.