Term-life-EN

Term Life Insurance Comparison

Buying life insurance is like making a long-term commitment, so it's best to compare different options and choose the most suitable term life insurance plan before making a decision. Let's compare the 4 major term life insurance plans in 6 different aspects, including premiums and coverage.

Updated on 2023-06-16

1. Compare Term Life Premiums

Assuming the policyholder is a non-smoker aged 25 to 40 and the coverage amount is HKD 1 million, the monthly premiums offered by different companies are as follows:

Male

Age	Bowtie Term Life#	Insurer A*	Insurer B^	Insurer C**
25	HK$47💰	HK$67.5💰💰	HK$50	HK$56.76
26	HK$44💰	HK$67.5💰💰	HK$50	HK$57.56
27	HK$41💰	HK$68.4💰💰	HK$50	HK$58.46
28	HK$40💰	HK$69.3💰💰	HK$50	HK$60.06
29	HK$38💰	HK$72💰💰	HK$50	HK$62.66
30	HK$38💰	HK$73.8💰💰	HK$50	HK$65.17
31	HK$40💰	HK$76.5💰💰	HK$50	HK$69.27
32	HK$42💰	HK$78.3💰💰	HK$50	HK$71.77
33	HK$45💰	HK$81💰💰	HK$51.67	HK$75.98
34	HK$49💰	HK$84.6💰💰	HK$54.17	HK$80.98
35	HK$53💰	HK$89.1💰💰	HK$54.17	HK$85.99
36	HK$56💰	HK$92.7💰💰	HK$56.67	HK$91.79
37	HK$59💰	HK$97.2	HK$60.83	HK$97.7💰💰
38	HK$62💰	HK$102.6	HK$66.67	HK$103.5💰💰
39	HK$65💰	HK$108	HK$72.5	HK$111.01💰💰
40	HK$68💰	HK$116.1	HK$80	HK$119.42💰💰

Female

Age	Bowtie Term Life#	Insurer A*	Insurer B^	Insurer C**
25	HK$27💰	HK$60.3	HK$27.5	HK$50.05
26	HK$27💰	HK$60.3	HK$29.17	HK$51.75
27	HK$27💰	HK$61.2	HK$30.83	HK$52.55
28	HK$28💰	HK$61.2	HK$32.5	HK$53.45
29	HK$28💰	HK$61.2	HK$33.33	HK$55.06
30	HK$29💰	HK$62.1	HK$34.17	HK$55.96
31	HK$31💰	HK$76.5💰💰	HK$35	HK$69.27
32	HK$32💰	HK$78.3💰💰	HK$35.83	HK$71.77
33	HK$35💰	HK$81💰💰	HK$37.5	HK$75.98
34	HK$38💰	HK$84.6💰💰	HK$39.17	HK$80.98
35	HK$40💰	HK$89.1💰💰	HK$41.67	HK$85.99
36	HK$42💰	HK$92.7💰💰	HK$45	HK$91.79
37	HK$44💰	HK$97.2	HK$48.33	HK$97.7💰💰
38	HK$45💰	HK$102.6	HK$51.67	HK$103.5💰💰
39	HK$47💰	HK$108	HK$55	HK$111.01💰💰
40	HK$48💰	HK$116.1	HK$56.67	HK$119.42💰💰

# Guaranteed Annual Renewal
*Renewable every 5 years/10 years/20 years
^Renewable every 1 year/5 years/10 years
**Renewable every 10 years
註The above premiums are the pre-discount prices
註💰 represents the cheapest option, 💰💰 represents the most expensive option
The above premiums were taken from the official websites of each insurance company on November 10, 2021. Insurance companies may update their premiums from time to time, so please refer to the official website for the latest fees

If you want to learn about premiums for other age groups, you can refer to this article to learn more.

2. Life Insurance Payments

To facilitate policyholders, many insurance companies provide multiple payment methods for paying premiums:

Bowtie Term Life	Insurer A	Insurer B	Insurer C
Credit Cards	FPS Online Banking Octopus Card Cheque/ e-cheque ATM Transfer Cash PPS (enables payment of bills through phone, internet or ATM) Auto-pay	Designated Bank Transfer	Online Banking Octopus Card Credit Cards Cheque ATM Cash

Bowtie desires to give customers freedom. They allow individuals to apply for insurance at any time and cancel their policy whenever they need to. Payments can be made monthly using Stripe Payment and credit cards.

3. Flexibility to Change Life Insurance Coverage

Bowtie Term Life	Insurer A	Insurer B	Insurer C
Can change coverage amount upon policy renewal	Can only increase coverage amount before the first policy year	Can only decrease coverage amount	Can only request an increase in coverage amount during the first policy year

Bowtie Term Life does not have any restrictions on the deadline for changing coverage amount. If policyholders wish to increase or decrease their coverage amount in the future, they can do so upon policy renewal every year. They will not lose the opportunity to adjust their coverage amount due to any delay.

How much Life Insurance Coverage do I need?

4. Term Life Insurance Renewal Term

Bowtie Term Life	Insurer A	Insurer B	Insurer C
1 Year	5 /10 /20 Years	1 /5 /10 Years	10 Years

The renewal term of a term life insurance policy refers to the number of years after which the policy will be renewed. For example, a 35-year-old man buys a policy that is renewable every 5 years, with fixed premiums for the first 5 years. When the policy is renewed at age 40, the premium will be recalculated based on his age and maintained for the next 5 years, and so on. If the policy is renewable annually, the premium will be adjusted each year upon renewal.

Using Bowtie Term Life as an example, since the coverage period is only one year after each annual renewal, the insurance company only needs to consider the policyholder’s risk for the next year. Therefore, the premiums are much cheaper. Although the premiums may be adjusted annually (based on the actual risk determined by age, fair pricing), Bowtie will inform the policyholder of the premium budget for the next 5 years before confirming payment, helping the policyholder to plan their budget in advance.

It should be noted that some annually renewable term life insurance policies in the market do not guarantee renewal. This means that policyholders may be directly rejected or temporarily uninsured when the coverage period ends, resulting in a “coverage gap”. Bowtie promises guaranteed annual renewal until the age of 100, so policyholders do not have to worry about suddenly losing their coverage and can enjoy peace of mind.

5. Exclusions of Term Life Insurance

Exclusions of term life insurance are generally minimal, and typically only include suicide within the first year after the policy is issued. For details, please refer to the table below:

Bowtie Term Life	Insurer A	Insurer B	Insurer C
Death caused by suicide in the 1st policy year	Death caused by: Suicide within 13 months from the Policy Commencement Date	Death caused by suicide in the 1st policy year	Death caused by suicide in the 1st policy year

(Please note: For all life insurance applications submitted on or after September 13, 2024, the suicide exclusion period will be changed to 2 years. Ensure that the personal information of the policy owner and the insured person is correct when submitting the application. If the submitted information is incorrect, you may need to resubmit the application. Please pay attention to the latest revised terms at that time. All terms and conditions are subject to the policy provisions of the issued policy. For a detailed explanation of the rationale behind this change, please refer to the accompanying article.)

Does life insurance in Hong Kong cover death by suicide?

6. Cooling-off Period of Term Life Insurance

The cooling-off period is the period given by an insurance company for a policyholder to review the policy terms. If the policyholder cancels the policy during the cooling-off period, they will receive a full refund of the premium paid. Since the Insurance Authority requires life insurance policies to have a cooling-off period of at least 21 days, every life insurance policy has a cooling-off period, but the length of time varies among different insurance companies:

Bowtie Term Life	Insurer A	Insurer B	Insurer C
21 Days	21 Days	30 Days	21 Days

Source

110Life

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Author

Bowtie Team

The Bowtie Life Insurance Company Limited is an authorized life insurance company and Hong Kong’s very first virtual insurer approved. Through the use of modern technology and medical expertise, Bowtie offers an agent-free, commission-free and more convenient online platform for customers to quote, apply and claim for Voluntary Health Insurance Scheme (VHIS) anytime anywhere. Bowtie is ranked first in the direct channel sales throughout 2021.

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The content of this article is provided by Bowtie Team and serves for reference only. It does not represent Bowtie's position. Bowtie assumes no responsibility for any loss or damage incurred by any person as a result of using, misusing, or relying on any information or content herein. Any content related to Bowtie products in this article is for reference and educational purposes only. Customers should refer to the detailed terms and conditions on the relevant product web pages.