Category: Living in Hong Kong as an Expat

4Sep

4 Ways to Know If You Have Enough Life Insurance

Thinking about death and what happens to the family we will leave behind is not really an experience we want to go through. However, practicality encourages us to do so, specifically if we’re talking about the financial aspect of it.

Most of us are not prepared for death. Besides not having our will ready, we also don‘t have enough insurance coverage to take care of our loved ones in case of our untimely death.

Some of us think that life insurance is enough to take care of the expenses that our family may incur after our death. But is that really enough?

Life insurance is important, but it will never be enough to fully cover the financial needs of our family. There are a lot of factors that come into play when we die. And this includes:

– the funeral and burial expenses
– debts and other financial responsibilities
– and even the lifestyle that our loved ones will have to adjust to

Funeral and burial expenses are one of the major expenses that a family will have to shoulder after the death of a family member. In Europe, the average funeral cost is around €5,000. So, how much life insurance is enough?

Here are ways to calculate it:

METHOD 1: 6x to 10x annual earnings

A suitable sum for life insurance, according to the majority of insurance firms, is six to 10 times the yearly earnings. If you multiply your annual earnings by ten, you would choose coverage of $500,000 if it were $50,000. Some suggest increasing the coverage over the 10x threshold by an additional $100,000 per child.

METHOD 2: Years before retirement

Multiplying your yearly income by the number of years until retirement is another method for determining the required amount of life insurance. For instance, a 40-year-old would require $500,000 in life insurance (25 years x $20,000) if their current annual income is $20,000.

METHOD 3: Standard of living

The standard-of-living approach is based on how much money surviving family members would require to maintain their quality of living in the event that the insured party passed away. That sum should be multiplied by 20. The idea is that survivors can invest the death benefit capital and earn 5% or more while taking a 5% annual withdrawal from the death benefit, which is equal to the standard-of-living amount. The term “human life value (HLV) approach” is occasionally used to describe this kind of calculation.

METHOD 4: DIME

The DIME method is an additional approach (debt, income, mortgage, education). This is designed to provide just enough insurance to pay for the family’s costs in the case of an untimely death. Using the DIME method, you should have enough coverage to pay off all of your debts, including your mortgage, cover the cost of your children’s schooling, and replace your income for however many years it takes for your children to reach the age of 18.

It is crucial to understand how much and what kind of life insurance you require if you do. For the majority of people, renewable term insurance is enough, but you must consider your unique circumstances. To prevent being stuck with insufficient coverage or paying for pricey coverage that you don’t need, decide on what you’ll need in advance if you decide to purchase insurance from an agent.

Do your study to make sure you buy the greatest life insurance you can since knowledge is key to making the right decision in both investing and life insurance. Find and contrast life insurance quotes to see which one would best meet your specific requirements.

28Aug

Updates on Employees’ Compensation Ordinance in Hong Kong | Typhoon Season

The Labour Department has reminded employers to make prior work arrangements for staff to ensure the safety of employees and smooth operation of establishments now that it’s typhoon season.

The Labour Department (LD) reminded employers to make prior work arrangements for staff during and after tropical cyclone warnings, including arrangements on reporting for duty, release from work, resumption of work and work from home (if applicable) to ensure the safety of employees and smooth operation of establishments.

There are several changes to the Employees’ Compensation Ordinance in Hong Kong. Companies need to be aware of these changes which essentially means that more people are now eligible for compensation if they suffer an injury or illness as a result of their work.

The key details about the ordinance are:

1. The scope of coverage has been expanded to include those who are not employees, such as domestic workers.
2. The definition of ‘compensable injury’ has been broadened to include mental health conditions caused by work stress.
3. The maximum amount of compensation that can be awarded has been increased.
4. The time limit for making a claim has been extended from one year to three years.

How will this affect businesses in Hong Kong?

Companies will need to take measures to protect workers from injuries and illnesses, both physical and mental. This may include providing safe working conditions, and training staff on how to cope with work stress. They may also need to budget for higher compensation payments in the event that an employee does suffer an injury or illness.

The penalty for non-compliance is HK$100,000 and 6 months imprisonment.

The reaction of employers to the new ordinance has generally been positive, as they recognise the importance of protecting workers’ health and safety. Some have raised concerns about the increased financial burden that may be placed on businesses, but overall most seem to support the changes.

One way for employers to reduce the financial burden from their end is to purchase employee compensation insurance, which will now become even more essential.

The cost of employee compensation insurance for a small business is estimated at around $2,000 per year while it costs a medium-sized business $3,000 to $4,000 and a large business $5,000 to $15,000.

Domestic helper insurance policies cost about $500 per year for up to four helpers. Coverage includes personal accidents, hospitalization and repatriation expenses.

Employers and businesses are expected to comply starting from the first day of employees’ first policy year. Changes to the ordinance in 2022 will make it mandatory for all businesses with employees to have employee compensation insurance in place.

Need help finding an employee insurance policy? Our advisors can help you find the right cover for your business.

9Jul

Tips for Businesses: Adapting to a Hybrid Way of Working

A lot of businesses have shifted to hybrid work with part of the week spent in the office and the other days spent with employees working remotely. It can be tough to keep everyone on the same page and to keep company processes streamlined.

Here are a few tips on how businesses can adapt to a hybrid working environment:

 

1. Schedule regular check-ins: Have weekly or biweekly check-ins with employees, either individually or in small groups. This is a time to touch base and see how everyone is doing both professionally and personally.

2. Set clear expectations: When it comes to hybrid work, it’s important to set clear expectations from the start. Employees should know when they are expected to be in the office and when they are expected to work from home.

3. Encourage communication: In a hybrid work environment, there will inevitably be more communication via email, chat, and video conferencing. Encourage employees to over-communicate, rather than under-communicate. Create a hybrid work policy: A hybrid work policy should spell out the dos and don’ts of hybrid work. This will help to set clear expectations and avoid any confusion down the road. Invest in the right technology: In order for hybrid work to be successful, businesses need to

4. Be flexible: One of the benefits of hybrid work is that it allows for more flexibility. Employees may need to take a break in the middle of the day to pick up their kids from school or take a walk to clear their heads. As long as they are getting their work done, be flexible with their schedule.

5. Set clear expectations and then let them work independently: Trust is key for this type of arrangement to be successful. If there are any misunderstandings, they can quickly snowball into big problems. If you micromanage them, it will only lead to frustration on both sides. If productivity has not dwindled, then you have nothing to worry about.

6. Invest in the right technology: In order for hybrid work to be successful, businesses need to invest in the right technology. This includes video conferencing software, project management software, and file-sharing platforms.

With technology, comes liabilities

Once your company has invested in the right technology, cybersecurity needs to be part of the package. Securing sensitive data, especially if you’re handling 3rd-party information needs to be a priority.

This can include investing in a good VPN, data encryption, and 2-factor authentication.

Create a remote work policy:

Much like your company’s regular attendance policy, hybrid work needs its own set of guidelines. This can help to prevent any misunderstandings about what is expected from employees. The policy should cover topics such as personal usage of devices, productivity trackers, etc.

Training employees about cybersecurity is also encouraged because your IT department is only as good as employees who understand the value of security protocols.

Regularly Back Up Data:

Backing up data is an essential part of any business’ cybersecurity strategy, but it’s even more important for hybrid businesses. This is because hybrid businesses often have employees working from different locations, which makes it more difficult to physically secure data.

Get Liability Insurance That Covers Cyber Security Breaches

This is one of the most important steps a company can take to protect itself against hybrid work-related risks. Cyber insurance can help cover the costs of data breaches, cyber extortion, and other risks that come with hybrid working.

Hybrid work can be a great way for businesses to adapt to the changing world. By being flexible with employees, investing in the right technology, and setting clear expectations, businesses can make hybrid work a success.

3Jul

Life Insurance in Your 30s and the Pandemic

If you’re like most people, you probably don’t think about life insurance very often. It’s one of those things that’s easy to put off until later. But if you’re in your 30s, it’s actually a good time to start thinking about life insurance.

How much insurance do you need for 30 year old?

2 Types of Life Insurance

There are two main types of life insurance:

1. Term life insurance and whole life insurance – life insurance is for a specific period of time, usually 10-20 years.

2. Whole life insurance is for your entire life.

Most life insurance experts recommend buying term life insurance in your 30s. Term life insurance is more affordable than whole life insurance, and it gives you the flexibility to change policies as your needs change over time.

When you’re in your 30s, you’re likely to have more financial responsibilities than you did in your 20s. You may have a mortgage, car loans, student loans, and credit card debt. You may also have a family – which means you need to think about how they would cope financially if something happened to you.

Life insurance can give you peace of mind knowing that your loved ones will be taken care of financially if something happens to you.

3 How Much Life Insurance Do You Need?

 

How much life insurance you need depends on your individual circumstances.

Some factors to consider include:

– Your current income and whether or not you have dependents
– Your debts and other financial obligations
– The cost of living

The Cost of Life Insurance in Hong Kong

Life insurance premiums in Hong Kong are determined by a number of factors, including your age, gender, health, lifestyle and the type and amount of cover you choose.

For example, life insurance for smokers will generally be more expensive than for non-smokers.

The best way to find out how much life insurance you need is to speak to a life insurance advisor.

According to the Life Underwriters Association of Hong Kong, the average cost of life insurance for a 30-year-old man is HK$2,700 per year, and for a 30-year-old woman, it is HK$2,040 per year.

However, life insurance premiums can vary widely depending on your individual circumstances.

The best way to find out how much life insurance you need is to speak to a life insurance advisor. They will be able to assess your individual needs and recommend the best policy for you.

Life Insurance with Pandemic Protection

In these uncertain times, it’s more important than ever to make sure you and your loved ones are protected. Life insurance can give you peace of mind that if the worst happens, your loved ones will be taken care of financially.

Many life insurance policies now come with pandemic protection, which means that if you die as a result of infectious disease, your family will still receive a pay-out. This can provide vital financial security at a time when it is needed most.

COVID-19’s long-term consequences are yet unknown, but we can’t overlook its financial and economic impact. Your money has now become your most valuable asset. Consider if you had to deal with the loss of your job or a medical catastrophe suddenly.

Working through the tough times is only half the battle. The other half concerns life insurance, which protects your savings as you work on paying for these unanticipated expenses. It also ensures that your finances will not be ruined by a single calamity.

The cost of added pandemic protection can range from a 5% to 35% increase depending on your current health status.

So, if you’re thinking about taking out life insurance, or if you’re not sure if you have enough cover, now is the time to speak to a life insurance advisor. They will be able to assess your individual needs and recommend the

30Jun

Travel is Back! What does this mean for insurers?

With international travel starting to pick up again after Covid-19, what does this mean for insurers?

There is no doubt that the pandemic has had a profound effect on the travel industry. According to the World Tourism Organization, global tourism arrivals declined by 70-80% in 2020.

This represents a loss of 1 billion to 1.2 billion international tourist arrivals and a revenue loss of US$1.2 trillion to US$1.3 trillion.

The good news is that travel is starting to pick up again. Europeans have begun jetting to popular holiday destinations like Portugal, Mexico, and The Caribbean.

What does this mean for travel insurers?

 

As travel starts to rebound, insurers will need to adapt their products and services to meet the new needs of travellers. For example, many insurers now offer insurance plans that cover Covid-19-related travel disruptions.

Some insurers are also offering Cancel for Any Reason (CFAR) coverage, which allows travellers to cancel their trip for any reason up to 48 hours before departure and receive a partial refund.

With travel starting to pick up again, it’s important for insurers to be prepared for the new reality of travel. by offering products and services that meet the needs of today’s travellers.

Countries That Require Travel Insurance with Covid-19 Protection

 

There are a number of countries that now require proof of travel insurance that includes coverage for Covid-19 in order to enter the country.

These countries include (This list may change over time so we recommend double-checking with each region’s policies):

– Germany

– Italy

– France

– Spain

– Greece

 

If you’re planning to travel to any of these countries, be sure to purchase travel insurance that includes coverage for Covid-19.

Asian countries that also require travel insurance with proof of Covid-19 coverage are (This list may change over time so we recommend double-checking with each region’s policies):

– Thailand

– Cambodia

– Laos

– Myanmar

– Vietnam

 

Do I Need Travel Insurance If I Have Health Insurance?

The answer to this question is, that it depends. Most standard health insurance policies do not cover you for medical expenses incurred outside of your home country. So, if you do get sick or injured while travelling, you will most likely have to pay out of pocket for all medical treatment.

Furthermore, even if your health insurance does provide some coverage for travel medical emergencies, there is a good chance that it will not cover the full cost. In these cases, travel insurance can help to cover the gap.

13Jun

The Value of Digital Health Services Post-pandemic

The pandemic has altered the way health care is given.

Insurance providers have reacted to the rising demand for digital and virtual GP services by developing products to fit customer needs.

Such programs have really taken off in terms of providing mental health support to consumers and those who have been affected by long Covid, and advisers recognise how crucial it is for clients to have access to them.

But, once Covid infection rates start to drop back, and restrictions are lifted entirely, will consumers continue using such solutions in the same way, or will they opt for face-to-face treatment as the country seeks to reclaim normalcy?

Increased Demand for Online Services

 

Jennifer Gilchrist, protection specialist at Royal London told Health & Protection said, “We’ve seen an increase in demand for digital health services coming out of the pandemic and people are becoming more used to virtual methods of accessing services.”

Gilchrist also added that many insurance providers devised more online and virtual capabilities quite quickly which has accelerated the digitalisation of an industry that’s been heavily reliant on more traditional processes when compared to other industries.

Ian Ranger, head of claims and medical underwriting from Canada Life also agreed and noted that a provider’s virtual support service was becoming part of customer expectations.

Health propositions lead at Aviva UK Health, Nina Brown, shared that for the first quarter of 2022, providers observed the average number of online appointments rise to 7,200 per month, with March seeing a record 8,500 appointments carried out.

Last October 2021, the average number of online appointments made was around 5,000 a month. These numbers are clear indications of continuing growth. Given this, healthcare providers, as well as insurers, need to respond to the demand and adapt.

Two factors must be kept in mind when innovating products/services:

1. speed
2. convenience

Less intrusive services and encourage patients to reach out more readily

 

The awkward waiting time at the doctor’s office or the energy-draining commute to the clinic can hinder some people to seek care. However, online services take away these factors and allow more people to reach out for mental health checks.

Virtual consults give plenty of breathing room for patients and lessen the anxiety some may feel when going to a therapist. Conducting a session in one’s comfort zone eases away a good chunk of the tension so there is more focus on more pending matters.

As the number of cases grows, digital delivery of services means long-term Covid patients don’t have to travel for treatment, as Dr Julie Denning, managing director of return-to-work rehabilitation firm Working To Wellbeing, points out.

“Those who have complex therapeutic demands, like those receiving cancer treatments or recovering from prolonged Covid,” Denning explained, “digital delivery means they don’t need to make additional travels outside of their home when they may be feeling exhausted, in pain, or concerned.”

The Demand for Digital Services is Unlikely Waning

While companies are making moves to return to work or have a hybrid setup, what healthcare providers and insurance can expect is the steadfast need for fast and convenient online services regardless of loose or non-existent restrictions.

Patients have realised the value of such services and there is very little sign of going back from this point forth.

 

19May

Can You Over-Exercise?

Isn’t it true that exercising is always beneficial? Not necessarily. What matters most for your heart’s health is doing the right amount of exercise for you as an individual.

We’ve all heard it before: the more exercise we get, the better.

Exercise has two sides. We all know that regular exercise makes you feel better and happier, and it is linked to a longer life. In contrast, we’re learning more about the impact of exercise on cardiovascular health – the heart and blood vessels. In fact, the medical speciality of sports cardiology has recently emerged. It’s studying the cardiovascular systems of professional and amateur sportspeople. It was discovered over the last ten years that the amount of atheroma (heart artery blockage) in a person’s arteries is linked to their weekly exercise intensity and duration.

So what happens if we over exercise?

When you exercise, your body becomes inflamed, especially if you do extreme exercises. The system becomes overly activated. This can also cause collateral damage to the arteries, allowing cholesterol to enter the artery walls and form clogs. The flip side is that, because of the health benefits of exercise, most blockages never get too big.

So, for cardiologists – and everyone else – the challenge is to figure out what degree of exercise is safe.

A lot of individuals do not experience a problem developing within their body until they begin to experience symptoms. The condition may be quite advanced by the time they feel that something might be wrong.

Some of the physical symptoms from over-exercising include:

-Excessive fatigue
-Injuries, such as stress fractures
-Dehydration
-Lack of appetite
-Poor sleep quality
-Muscle soreness

If you are experiencing any of these symptoms, it is important to take a break from your workout routine and restore your body to its natural state.

Finding balance

It’s a question of input and results in this case: there is a threat, but also an advantage. Despite the fact that there is no evidence that exercise kills, you can still benefit from it. If it makes you feel better and helps you get in better condition in general, it will help you live longer.

There should be a knowledge of the relationship between intensity and duration of exercise and degree of artery damage. Identify if you’re at risk and move from there.

Who is most at risk from over-exercising?

There is no definitive answer to this question as the risks associated with over-exercising can vary from person to person.

However, those who are most at risk of damage from over-exercising are usually people who are already in poor health, have a history of heart problems, or suffer from conditions such as diabetes or hypertension. Additionally, older people who were active in their younger years may also be at risk, as they may not be able to handle the level of activity they once did.

What can you do to protect yourself from over-exercising?

The best way to protect yourself from the dangers of over-exercising is to be aware of your own limitations and exercise within them.

Need help finding the right health insurance for pre-existing heart conditions? Get in touch with us today. We specialise in finding the best policies for expats in Hong Kong.

10Apr

5 Tips for Claiming Health Insurance for First-timers

Filing a health insurance claim can be a daunting task.

We want to help make the process as smooth as possible for you. Our goal is to provide you with the information and resources you need to get through this difficult time.

Here are some tips for first-timers:

1. Gather your information. Make sure you have all of the necessary information to file your claim. This includes your insurance card, policy number, the name of your doctor and the dates of your appointments.

2. Call your insurance company. The sooner you start the process, the sooner you will receive reimbursement. Most insurance companies have specific time periods for claims so make sure to make note of that detail.

Common issues when claiming health insurance are :

– Filing a claim that is incomplete or inaccurate. And what we mean by this is, submitting a claim without all the necessary information or omitting critical details. This can result in the claim being denied.

– Not giving your insurance company enough time to process your claim. Each insurance company has their own set of rules and regulations when it comes to processing claims, so make sure you are familiar with them before filing.

3. Submit your claim. This can be done online, over the phone or in writing. Be sure to include all of the information you gathered in step one. Some insurance providers even have apps to streamline the process.

4. Follow up on your claim. Checking in with your insurance company to make sure they have all the information they need and that your claim is being processed correctly is a good idea. This will also help avoid any delays. Insurance companies often take several weeks to process a claim, so be patient.

Claiming for critical illness insurance may have different requirements. For example, critical illness insurance for cancer treatment requires pre-approval from the insurance company. Upon getting the cancer diagnosis, the patient then has to contact the insurance company and provide detailed information about their prognosis including scans, pathology reports and doctors’ notes.

The patient will also have to agree to certain conditions, such as using specific hospitals or cancer treatment centres. If all of this is done correctly, the insurance company may cover 100% of the cancer treatment costs

5. Get paid. After your treatment is completed, you should receive a bill from the hospital or doctor. Once you have paid this bill, submit a copy of the bill to your insurance company for reimbursement or whichever payment process is involved. Most companies will reimburse you within two to four weeks.

So, there you have it. Five steps to filing a successful health insurance claim. By following these simple tips, you can make the process as smooth and stress-free as possible. Good luck!

Get in touch with us to find personal and business insurance in Hong Kong. We specialise in expat insurance needs.

5Apr

How Insurers Are Developing New Products Post-Pandemic

The current pandemic of Covid-19 has created a need for all people to have travel insurance. If you are planning on travelling in the near future, it is important to have protection in case you become ill or injured while travelling. Many travel insurance policies include coverage for medical expenses and trip cancellations.

WHICH ASIAN COMPANIES ARE OFFERING INSURANCE FOR COVID?

In Asia, many companies have developed new products to cater to new travel insurance needs after the pandemic. As travel restrictions and requirements with coronavirus (COVID-19) continue to evolve, many people are left wondering what the current travel insurance policies will cover.

For example, insurance company AIG has developed a travel insurance policy that includes coverage for medical expenses, trip cancellations, and lost luggage. The policy also includes a $1 million USD limit for medical expenses.

Another company, Tokio Marine, has developed a travel insurance policy that includes coverage for Covid-19 related expenses such as cancellations and rebooking.

Hong Kong Life Health Amulet travel insurance has announced that it will be offering a new travel insurance policy to cover travel disruptions caused by the COVID-19 pandemic. The new policy will provide coverage for travel delays, cancellations, and lost or stolen luggage.

According to Hong Kong Life, the policy is intended to help both insureds and their families during an epidemic. During the period beginning March 1, 2022, and ending March 31, 2022, with a valid application for any insurance plans (except certain products1) from Hong Kong Life at its Appointed Licensed Insurance Agency in Hong Kong, and the policy being

Hong Kong Life is not the only insurer to offer new travel insurance policies in light of the pandemic. Many other insurers have announced similar policies in recent weeks.

COST OF PREMIUMS

Premiums for travel insurance have understandably increased over the past year. Airlines, hotels, and other travel-related businesses have all suffered losses as a result of the pandemic, and people are increasingly aware of the importance of travel insurance in protecting them from financial ruin in case of an unexpected emergency.

To be sure you're totally protected, we recommend paying a higher premium for policies that allow you to cancel a trip for any reason.

In general, most travel insurance policies range from 5% to 10% of the total cost of a trip. Insurers may look at how long passengers have been travelling and the age of those on board. However, insurers are yet to inquire about immunization against COVID-19.

WHAT’S WORTH HAVING IN A POLICY?

To be sure you’re totally protected, we recommend paying a higher premium for policies that allow you to cancel a trip for any reason. This is an upgrade, therefore the cost of coverage will be approximately 40% to 50% more. However, because of this benefit, you can usually cancel your trip for any reason that isn’t covered by standard trip cancellation.

Need help finding the right travel insurance? Get in touch with us today.