The basic concept of “Insurance” is transferring the risk of unpredictable financial loss to the insurance company by insurance contract. For example, a dread disease protection insurance cannot cure you, but it can cover your financial loss due to the sickness.

Underwriting is a process of insurance company in assessing the risk, additional premium and/or exclusions may be applied upon the result. In case of excessive high risk, insurance may reject the application as to protect the interest of the company and other customers.

It is easy to understand that the process of application will be faster and easier to be accepted under simpler underwriting. However, as the risk may not be fully analysed, potential risk may lead the unnecessary extra premium.

The coverages of life insurance product seem complicated, but the coverage can be distinguished into 4 general scopes and be remembered with a beautiful word “CALM”:

Basically, the sum insured mainly depends on the financial burden and the affordability of the insured. You may use our Protection Coverage Calculator to help you understanding your need.

Life insurance is not only applicable to the financial supporter of the family, but also important to housewives and househusbands. Although family caring is not a paid job, they still make a great contribution to the family. In case the family care-giver suddenly falls ill or passes away, and there are still children or elders need to be taken care, the family financial supporter often has to reduce working hours to take care of the family or hire a helper to handle of the housework. Therefore, family care-givers must also purchase insurance to protect the lives of their families.

Term life insurance is one of the most basic life insurance plans. As it does not contain any cash value, savings or investment components, it can provide the largest life protection at a low premium; the general coverage period is until the insured’s 70 or 80 years old, mainly the purpose is to protect the insured person from risk during the income period.

On the other hand, whole life insurance contains savings and investment components, in addition to providing basic life protection, if the insured surrenders halfway, the relative cash value can also be obtained; the protection period is mostly life or until the insured is 100 years old.

In fact, both have their own characteristics, so you can choose according to your needs. The biggest advantage of term life insurance lies in its affordable premiums, while whole life insurance has a longer coverage period and cash value. If there is a need for insurance and the ability to pay is limited, term life insurance is more appropriate; when the finances are relatively sufficient, you can choose to purchase a whole life insurance or invest on your own to give your family longer-term protection.

In short, the former focuses on returns, while the latter focuses on protection.

Although short-term savings life insurance can enjoy a shorter payment period and a higher rate of return than the coverage period, the amount insured is usually only a symbolic amount, which is only a few percentage points higher than the total premium.

The premium refundable life insurance is focused on providing protection, providing policyholders with a certain degree of protection at a relatively low cost. After the expiration, full or partial premiums can be refunded. Some products, such as our Thousand Protection, and more opportunity to get a refund that is higher than the total premium.

Pacific Life has participated in the Anti-Scam Consumer Protection Charter 2.0 (“Charter 2.0”) which is jointly launched by the Hong Kong Monetary Authority, the Insurance Authority, the Mandatory Provident Fund Schemes Authority and the Securities and Futures Commission. It aims to help the public safeguard their bank, credit card, investment, insurance and mandatory provident fund (MPF) account and other key personal information, and combat against frauds and scams, in particular phishing messages purportedly to be sent by financial institutions and merchants.

Pacific Life will not send any instant electronic messages (e.g. SMS, WhatsApp, WeChat, etc.) to the publics, clients, agents and brokers with embedded hyperlinks to acquire bank, credit card, investment, insurance and/or mandatory provident fund (MPF) account and/or other key personal information online, unless arising from requests by them.

If you have any inquiries or need to verify the identity of the message sender or the authenticity of the message, please contact our Customer Service Hotline at (852) 2876 0876 or by email at cs-pla@pacificgroup.com.hk.