Online life insurer Bowtie has recently increased its maximum insured amount for term life insurance to HK$20 million, positioning the firm as the online provider offering the highest life coverage in the region.
Term life insurance is known for its affordability, providing higher life coverage at lower premiums due to the absence of a savings component. However, a common limitation of online term life insurance products has been their relatively lower maximum insured amounts, often capping at a few million dollars. This limitation has been a significant concern for individuals with higher incomes, as the coverage may not suffice for their needs. Previously, individuals seeking coverage over HK$10 million had to apply with two separate insurance companies, a process that was cumbersome.
To address this gap, Bowtie has collaborated with two multinational reinsurance companies, increasing the insured amount to a maximum of HK$20 million. This enhancement allows customers to opt for life coverage of up to HK$20 million after undergoing financial underwriting and a medical examination if they find the standard insured amount insufficient.
The previous maximum insured amounts at Bowtie, which did not require a medical examination, were set according to age groups, ranging from HK$1 million to HK$8 million. The updated structure now offers coverage up to 30 times the work income for individuals aged 18-45 years, decreasing progressively with age, with a maximum of 10 times the work income for those aged 61-65 years.
Financial underwriting at Bowtie considers the insured’s work income, including monthly salary, bonuses, and commissions, while other income sources like dividends and rental income are not factored in, as they are not directly affected by the insured’s death.
This strategic move by Bowtie not only enhances its product offering but also responds to the specific needs of customers seeking higher coverage. The company’s initiative to provide up to HK$20 million in life coverage reflects its commitment to meeting consumer demands, ensuring that individuals can secure sufficient financial protection for their loved ones in case of unforeseen circumstances.
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