How to buy Hong Kong insurance for "Hong Kong insurance white"?

After the scheduled interest rate of domestic insurance fell, Hong Kong insurance once again became popular out of the circle, and the reason is very simple: the higher dividend interest rate of Hong Kong insurance, the internationalization of product protection liability, and product function design have made Hong Kong insurance a sweet spot.

Especially when the domestic predetermined interest rate is less than 3%, Hong Kong insurance still maintains a dividend interest rate of 5~7%, which has become a very good preferred solution for wealth preservation, appreciation and inheritance.

However, as a mainland resident, before buying Hong Kong insurance, these questions will definitely arise in my heart:

• Is it legal and compliant to buy insurance in Hong Kong?
• Is the exchange of funds legal and compliant?
• Is it convenient to settle insurance claims?

Frankly speaking, after more than half a year of our field trips, we found that going to Hong Kong now is really different from many years ago, the entry and exit is very fast and convenient, whether you take the high-speed rail or the plane, the turnstile swipes an ID card and then a Hong Kong and Macao permit to pass, very silky, that feeling is really no different from a business trip between mainland cities.

01

What are the types of insurance in Hong Kong?

Generally speaking, insurance is divided into property insurance and life insurance, property insurance is to protect property, dead things, such as houses, cars, ships, etc., life insurance is the guarantor, Hong Kong insurance sells 99% of the insurance to mainland customers are life insurance, and life insurance can be subdivided into protection and investment.

As a mainland resident who is novice to Hong Kong insurance, if you are also planning to allocate Hong Kong insurance for yourself or your family members, the following specific procedures and key points to note about Hong Kong insurance allocation should not be missed.

Protection insurance includes: critical illness insurance, pure accident insurance, and high-end medical insurance.

Investment insurance includes: US dollar savings and participating insurance, pension insurance, wealth inheritance insurance and investment-linked insurance.

02

Can mainland residents buy Hong Kong insurance?

No matter how good the product is, whether it can legally buy and hold the policy and enjoy the benefits of the policy is the core issue.

Let's take a look at our domestic laws first:

According to the general practice of all countries in the world, civil legal acts follow the principle of "nothing prohibited by law", and China is no exception. Looking at the laws and regulations of the mainland, there is no provision prohibiting Chinese mainland residents from purchasing insurance in Hong Kong. Therefore, from a legal point of view, it is legal for mainland residents to purchase insurance in Hong Kong without violating the prohibitions of laws and administrative regulations.

Let's look at Hong Kong law:

According to the Insurance Companies Ordinance (Cap. 41), it is lawful for any insurance company authorized in Hong Kong to promote life insurance in Hong Kong, regardless of whether it is a Hong Kong local, a foreign person or a Chinese mainland person.

From the perspective of domestic and Hong Kong laws, it is completely legal and compliant for mainland residents to go to Hong Kong to sign insurance contracts. However, the important point is to go to Hong Kong in person to sign the contract, if it is signed in a non-Hong Kong area, it is not possible, and if there is a problem, it is not protected by domestic laws and Hong Kong laws. However, if you go to Hong Kong to sign the contract in person, then you will enjoy exactly the same rights and interests as Hong Kong locals who buy the policy.

03

Is RMB currency conversion legal and compliant?

Hong Kong insurance policies are mostly denominated in US dollars, and if you buy Hong Kong insurance, you need to pay in US dollars, which involves the purchase of foreign exchange from RMB to US dollars.

At present, according to the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange issued by the State Administration of Foreign Exchange, the State Administration of Foreign Exchange (SAFE) implements the management of the annual total amount of foreign exchange settlement by individuals and the purchase of foreign exchange by domestic individuals, which is equivalent to US$50,000 per person per year.

04

Is it convenient to settle claims and withdraw cash from Hong Kong insurance?

When applying for Hong Kong insurance, the policyholder needs to go to Hong Kong to apply for insurance, but when applying for a claim, he only needs to "complete the documents" and mail the relevant materials to the insurance company or agent, and he no longer needs to go to Hong Kong in person to apply for a claim.

With the improvement of Internet information technology, Hong Kong insurance companies have also launched their own service apps, and some companies have fully realized the function of online claims.

Whether it is a claim or a dividend withdrawal, you can directly receive the Hong Kong card, and you can also use it in China!

05

Preparation and information required for application

First of all, you need to confirm the insurance plan you want to buy and decide on the allocation plan.

Hong Kong insurance is still more complicated for novices, and it is easy to buy the wrong protection when blindly applying for insurance.

It is recommended that you consult a professional Hong Kong insurance consultant to inform the insurance consultant of your premium budget, personal circumstances and protection needs, so that the professional can recommend a suitable insurance plan for you.

After confirming the insurance product you want to insure, the insurance consultant will formulate an exclusive insurance plan according to your budget and needs, and contact the insurance company to make an appointment for signing the policy.

With the help of an insurance advisor or insurance company, you can prepare all the necessary documents.

Documents required for adults to apply for insurance

• Identity document/household registration booklet

• Hong Kong and Macau Permit (within validity)

• Entry paper (entry slip)

• Proof of address: bank statement or utility bill

• Proof of relationship: Marriage certificate or household registration book is required for husband and wife insurance

• Cash/Hong Kong bank or credit card

Documents required for minors to apply for insurance

• Birth Certificate/Hukou Booklet

• ID (if any)

• Entry paper

• Health certificate: Children aged 0-7 years old are required to bring a vaccine book (health booklet)

Other materials

• Pregnant women need to bring a prenatal examination record form to apply for insurance;

• If there is a medical history, a medical report or medical records are required.

Bring the above documents to Hong Kong for insurance, and then arrive at the Hong Kong insurance company's office at the appointed time. Once the policy is signed, you can pay the initial premium at the Cashier of the Hong Kong Insurance Company Service Centre.

There are many payment methods, such as cash payment, local bank card payment, credit card payment, Mainland bank telegraphic transfer, cheque payment, etc.

After the initial premium payment is completed, the Hong Kong insurance company will underwrite the underwriting, which will usually be completed within three working days.

After the underwriting is completed, the official policy will be mailed to the policyholder, and the policy can be received within one month after the underwriting + confirmation of payment.

The policy will be in force for an agreed period of time, and the insured can enjoy peace of mind.

In the above process of purchasing Hong Kong insurance for Mainland residents, there are some important points that need to be paid special attention to:

01. If either spouse wants to purchase Hong Kong insurance for their spouse, both husband and wife must arrive at the Hong Kong insurance company in person to sign. However, if parents want to purchase Hong Kong insurance for their minor children, the children do not need to go to Hong Kong in person, but only need to bring the documents required for the minors mentioned above to apply for insurance.

02. After successful application, the policyholder has the right of "cooling-off period". "Cooling-off Period" means the earlier of 21 days from the date of delivery of the relevant policy or the Cooling-off Notice to the policyholder. If you find that the policy you have purchased is not suitable for you, you can request the insurance company to cancel the policy during the cooling-off period and the insurance company will refund all premiums paid or market-adjusted premiums (if applicable).

03. In the Regulatory Alert published on 12 May 2023, the Hong Kong Insurance Authority reminds mainland residents not to pay premiums to any individual insurance agents when purchasing Hong Kong insurance, but to pay directly to authorized insurers, i.e. insurance companies.

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