How to buy Life Insurance

Insurance Company

(e.g. Policy Type or Sum Insured)

• The insured must declare their health status through an online underwriting system (mainly multiple-choice questions).
• For virtual insurers, like Bowtie, for example, a health exam is not necessary. Instead, around 80% of cases are handled by the automated underwriting system; around 20% of cases with more complex medical records are handled by underwriters.

• Payment method: Bowtie policyholders can select a preferred credit card
• Premium billing: Premium charged monthly to the designated card
• Settlement currency: Premiums are settled in HKD

• Payment of commission not needed, lower premiums

• Information transparency:
  Information about each insurance product, including price, coverage, and policy, can be found on the website, making it easy for consumers to make comparisons.

• Discount offer for application leaps to the eye:
  Virtual insurers usually present discounts for applications in an easily decipherable way for their customers, who must apply online.

• Customers are not subject to sales pressure:
  All products are sold online without intermediaries. As a result, consumers are not put under any sales pressure.

• Customers can apply anytime, anywhere: With internet access, customers can apply anytime, anywhere.

• Customers have to study each life insurance product on their own and compare the pros and cons. While this might take time and effort, it helps customers understand their policy and coverage.  
• The insured has to manage their policy and claims on their own. However, the insurer’s customer service can provide timely assistance.

(e.g. Policy Type or Sum Insured)

1. The insured has to declare their health status.
2. In specific cases, for instance, where the insured is advanced in years or has a severe pre-existing condition, the insured has to undergo a health exam.
3. The intermediary submits the insured’s declared information to the insurer’s underwriting department and awaits the underwriting outcome.

• Cash, checks, bank transfers, cashier’s checks, credit cards, PPS, autopay, online banking, FPS, Payme 

Premium billing: 

• Lump-sum, monthly, quarterly, semi-annually, annually

Settlement currency: 

• Premiums can be settled in Hong Kong Dollars (HKD) and foreign currencies, most commonly, U.S. Dollars (USD). The same currency for payment of insurance premiums is used for the settlement of claims.

When purchasing an insurance policy through a broker, you make your premium payment to the broker’s agency, after which the payment is made to the insurer by the broker. When purchasing an insurance policy through an agent, you make your premium payment directly to the insurer.

• Intermediaries can help explain and assess your insurance needs
• Various options available for each type of insurance
• After-sales service, including filing a claim for the insured

• A commission is payable when an intermediary is involved, thus higher premiums
• Customers may feel sales pressure from the intermediaries
• Quality of after-sales service depends on intermediaries’ capabilities and sense of responsibility
• Since the intermediary handles most arrangements, the insured might not be familiar with their policy coverage, insurance combination, and even the claims procedure.