Zurich Term Life Insurance Plan
Term life insurance coverage of up to HKD 3 million for less than HKD 5.4 a day!
Affordable premium
Terminal illness benefit
Instalment payment option for death benefit
Why do you need term life insurance?
A term life insurance plan can help build a financial safety net for your loved ones, so they can receive support when the unexpected happens.
Protect your family’s home
If you unfortunately pass away while paying a mortgage, term life insurance will pay a death benefit to your beneficiaries.A beneficiary is the person or entity who is entitled to receive the benefit from the policy if the insured person unfortunately passes away. This can help your loved ones continue covering mortgage payments and everyday expenses, easing their financial pressure at a difficult time.
Support your children’s growth and education expenses
Children’s growth requires long-term planning. If the unexpected happens, term life insurance can provide financial support for their daily needs, school fees and future education expenses, helping them stay on track as they grow.
Give your parents greater protection in later life
If your parents depend on your income, term life insurance can provide financial support if you pass away, helping them maintain a more secure retirement life.
Protect your family’s home
If you unfortunately pass away while paying a mortgage, term life insurance will pay a death benefit to your beneficiaries.A beneficiary is the person or entity who is entitled to receive the benefit from the policy if the insured person unfortunately passes away. This can help your loved ones continue covering mortgage payments and everyday expenses, easing their financial pressure at a difficult time.
Support your children’s growth and education expenses
Children’s growth requires long-term planning. If the unexpected happens, term life insurance can provide financial support for their daily needs, school fees and future education expenses, helping them stay on track as they grow.
Give your parents greater protection in later life
If your parents depend on your income, term life insurance can provide financial support if you pass away, helping them maintain a more secure retirement life.
Four key features of Zurich Term Life Insurance Plan
No savings component – enjoy life protection with relatively lower premiums
Zurich Term Life Insurance Plan provides pure life protection without any savings component, helping you build reliable and flexible life coverage with more affordable premiums, giving your family a reassuring financial safeguard.
For the same sum insured, term life insurance premiums are generally lower
The above comparison is for illustration only. It assumes the same level of sum insured, issue age, gender, smoking status and standard premium rate at the time of application. Actual premiums, benefit and product features depend on individual circumstances, underwriting results and the terms and conditions of the policy.
Comparison between term life insurance and whole life insurance
| Term Life Insurance | Whole life insurance | |
|---|---|---|
| Coverage term | Specified coverage term, for example 1, 5 or 10 years | Coverage lasts until the death of the insured The person covered by the policy. In the event of their death, the HK insurer issues the death benefit. |
| Premiums | Relatively lower premiums, mainly used for death benefit protection | Relatively higher premiums, with part of the premium used to accumulate cash value |
| Savings or investment component | No | Yes |
| Sum insured | For the same premium, you can obtain a higher sum insured | For the same premium, the sum insured is relatively lower |
| Cash value | No cash value, the policy does not accumulate any cash value upon surrender or at the end of the coverage term | Usually accumulates cash value, which can be used for policy surrender or policy loans |
| Suitable for | Those with a limited budget who wish to obtain higher life protection | People who wish to have both long-term protection and savings planning |
Terminal illness benefit
If a registered medical practitioner diagnoses the insured with an illness expected to result in death within 12 months, a portion of the death benefit may be paid in advance and all future premiums will be waived.
How it works?
1
A medical practitioner certifies that the insured’s condition is expected to result in death within 12 months.
2
A portion of the death benefit can be paid in advance, equal to the lower of:
(i) 50% of the sum insured; or
(ii) HKD 1,000,000,
and subsequent premiums will be waived.
3
Upon death, the beneficiary will receive the remaining death benefit (sum insured – any terminal illness benefit paid - any indebtedness).
1
A medical practitioner certifies that the insured’s condition is expected to result in death within 12 months.
2
A portion of the death benefit can be paid in advance, equal to the lower of:
(i) 50% of the sum insured; or
(ii) HKD 1,000,000,
and subsequent premiums will be waived.
3
Upon death, the beneficiary will receive the remaining death benefit (sum insured – any terminal illness benefit paid - any indebtedness).
Death benefit can be paid in installments – long-term protection for greater peace of mind
Flexible death benefit settlement option allows you to arrange in advance for the beneficiary to receive the death benefit as a lump sum or in installments after the insured passes away.
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| Premium renewable term | 1/5/10 years |
| Issue age | 19 - 71 (age next birthday) |
| Guaranteed renewable age | Up to life insured’s age 100 (age next birthday) |
| Policy currency | HKD |
| Premium payment frequency | Monthly/Annually |
| Minimum sum insured | HKD 100,000 |
| Maximum sum insured |
19-50 (age next birthday): HKD 3,000,000 |
| Death benefit | = Sum insured - any terminal illness benefit paid - any indebtedness |
| Terminal illness benefit | The lesser of (i) 50% of the sum insured; or (ii) HKD 1,000,000 |
| Death benefit settlement option |
The death benefit can be paid to the beneficiary(ies): (i) in lump sum; or (ii) by monthly installment to be settled within one year to ten years |
| Residency |
The policyholder
The legal owner of this HK life policy. They hold the sole right to change policy terms or select, alter, or terminate beneficiaries, and are primarily responsible for premium payments.
and the life insured must be Hong Kong residents
(each life insured can only be insured by no more than one policy of this plan) |
Know more
You need to pay premium due throughout the premium payment term. You may request to change the premium payment frequency, subject to our prevailing administrative requirements.
The premium is fixed within the first premium renewable term. The renewal premium is subject to change after the first premium renewable term.
We shall allow a grace period of 30 days after the premium due date for payment of each premium. If a premium due is unpaid after the grace period, the policy will be lapsed and you may lose all of your benefits (including life insurance coverage) under this policy. You may apply for reinstatement after the policy is lapsed, subject to our approval.
Automatic guaranteed renewal
We guarantee to renew this policy automatically at the end of each premium renewable term up to the age of 100 (age next birthday) of the life insured without health underwriting. Unless we have been informed in writing of your intention not to renew the policy before the next renewal, the policy will be automatically renewed for another premium renewable term (subject to premium change) at the end of each premium renewable term until the policy expiry date.
Terminal illness benefit
If the life insured is diagnosed by a registered medical practitioner to have suffered from a condition that is expected to result in death within 12 months, we will waive all the subsequent premium(s) payable under the policy and pay the policyholder a terminal illness benefit which is equivalent to the lesser of the following:
(1) 50% of the sum insured; or
(2) HKD 1,000,000.
We will only pay the terminal illness benefit if the life insured is no longer receiving any active treatment other than that for pain relief or other conservative palliative measures.
The terminal illness benefit will be terminated on the policy anniversary date which falls on or immediately follows the life insured’s 81st birthday (age next birthday).
Under no circumstances shall this terminal illness benefit be paid more than once throughout the policy term. If the life insured suffers from more than one terminal illness at the same time, only one claim can be made under this benefit.
Death benefit settlement option
While the life insured is alive, the policyholder can choose one of the following options for payment of death benefits to the beneficiary(ies):
- a lump-sum payment; or
- monthly installment lasting for one year to ten years without interest.
If the life insured, whether sane or insane, commits suicide within one year from the policy issue date or the reinstatement date, whichever is later, our liability under the policy will be limited to the refund of total premium paid (without interest) starting from the policy issue date or the reinstatement date (whichever is later).
Borrowing powers
This policy does not provide any cash value for policy loans and has no borrowing powers.
Termination
Your policy will be terminated on the earliest of any of the following:
- the death of the life insured;
- the surrender of the policy;
- the end of the grace period upon the non-payment of premium(s); or
- the policy expiry date.
Upon termination as a result of (ii), (iii) or (iv) above, no payment will be made by us. If a policy is terminated on the policy expiry date, coverage under the policy will be provided up to and including the policy expiry date.
Cooling-off period
The cooling-off period is a period during which you may cancel the policy and obtain a refund of any premium and levy (if any) paid by you, within 21 calendar days immediately following the day of delivery of the cooling-off notice to you. Such notice should inform you of the availability of the policy and expiry date of the cooling-off period.
If you are not completely satisfied with the policy, you have to notify Zurich by sending us a written notice to customer@hk.zurich.com, through your registered email, within the cooling-off period. Such notice must include policy number, your name and HKID card number.
Termination right due to regulatory exposure
If you move to another country during the lifecycle of your policy, you must notify us of such planned change prior to such change but no later than within 30 days of such change. Please note that you may no longer be eligible to make payments into your policy. The local laws and regulations of the jurisdiction to which you move may affect our ability to continue to service your policy in accordance with the policy provisions. Therefore, we reserve all rights to take any steps that we deem appropriate, including the right to cancel the policy.
Authorization
Zurich Term Life Insurance Plan is issued by Zurich, which is subject to the prudential regulation of the Insurance Authority.
Insurance Authority Levy
From January 2018, the Insurance Authority (“IA”) requires all Hong Kong policyholders to pay a levy on their insurance premiums. The purpose of the levy is to finance the IA, and it is calculated as a percentage of the premium paid. The levy collected by the IA will be imposed on this policy at the applicable rate.
For more information on levy, please visit our website or webpage of the Insurance Authority.
Governing law
This Plan shall be governed by and construed in accordance with the laws of the Hong Kong Special Administrative Region.
Inflation risk
Please note that the cost of living in the future is likely to be higher than it is today due to inflation. In that case you will receive less in real terms even if we meet all of our contractual obligations under the policy.
Credit risk
Zurich Term Life Insurance Plan is an insurance policy issued by us. Therefore, the benefits payable under the policy are subject to our credit risks. If we are unable to satisfy the financial obligation of the policy, you may lose your premium(s) paid and benefits.
Premium adjustment
When you renew this policy, the renewal premium that we will charge you will be based on the premium rate applicable to the life insured according to his attained age on the date of renewal of this policy and the sum insured without health underwriting at each policy renewal. The premium is fixed within the first premium renewable term, and the renewal premium is subject to change after the first premium renewable term. Zurich reserves the right to review and adjust the premium rates from time to time according to factors such as (i) increase in administration and other costs, which we reasonably incur; and/or (ii) the cost of additional charges, levies or taxes which apply to policy or to us as a whole; and/or (iii) any additional cost associated with changes to legislative or regulatory requirements; and/or (iv) expectation in terminal illness claims; and/or (v) increases in any underlying expenses; and/or (vi) the impact of medical advance in the treatment and/or cure of applicable mortality and morbidity risks.
Currency conversion and exchange rate risk
We may at our discretion accept any premium payment in currencies other than the policy currency. If it is the case, we will convert the premium paid by you into the policy currency.
The currency conversion will be conducted at a prevailing exchange rate reasonably determined by us in good faith and a commercially reasonable manner with reference to the market rates on the transaction date and is therefore subject to foreign exchange risks. Please refer to Zurich website for the prevailing exchange rates.
Term life insurance FAQs
Term life insurance provides life protection for a specified policy term. If the insured passes away during the policy term, the insurer pays a lump-sum death benefit to the beneficiary, helping the family cover daily expenses, mortgage repayments, children's education and other financial needs.
As term life insurance carries no savings, bonus or investment element, term life insurance is a pure protection life insurance. Premiums are generally more affordable than whole life insurance, allowing a higher sum insured at lower cost. Since it has no cash value, early termination usually involves no loss of accumulated value.
Term life insurance also offers flexibility, letting policyholders choose a suitable policy term and sum insured to match their life stage and financial needs.
Term life insurance provides life protection for a specified policy term. Its premium is generally more affordable, making it suitable for people who want a high level of protection during specific life stages, such as when paying a mortgage or raising children.
Whole life insurance provides a death benefit and also includes a savings element. It is a life insurance plan that combines life protection and savings, helping the insured person accumulate cash value and non-guaranteed bonuses or dividends during the policy period. However, the coverage, savings element, cash value and bonus or dividend arrangements of whole life insurance vary by product. The actual benefits are subject to the terms and conditions of the individual product.
Term life insurance is suitable for people who want to build life protection for their family with a relatively affordable premium, including:
- Primary breadwinner of the family.
- People with a spouse, children or dependent parents.
- People with a mortgage, personal loan or other debts.
- Young professionals, newly married couples or new parents.
- People who already have company life insurance but want to increase their personal protection.
- Self-employed individuals or small and medium enterprise owners.
You may consider it. Group life insurance provided by an employer is usually basic protection. However, the sum insured, coverage scope and policy term may not fully match your personal family and financial responsibilities, such as mortgage payments, household living expenses, children’s education costs or other long-term needs.
As group life insurance is generally linked to your employment, the coverage may end when you leave your job, change jobs or retire. It is therefore advisable to review whether your existing company coverage is sufficient to cover your financial responsibilities, dependants’ needs and protection gap. If your existing coverage is not enough, you may consider supplementing it with personal term life insurance, so your overall life protection can better meet your personal and family needs.
No. Term life insurance mainly provides death protection, but some term life insurance plans may also include, or allow you to add, other benefits. These may include accidental death benefit, total and permanent disability benefit, critical illness rider options and waiver of premium benefit, depending on the individual plan.
For example, Zurich term life insurance also provides terminal illness benefit. If a registered doctor diagnoses that the insured person is expected to pass away within 12 months due to an illness, Zurich will waive all subsequent premiums and pay a portion of the death benefit to the policyholder in advance. The amount will be 50% of the sum insured or HKD 1,000,000, whichever is lower.
Most term life insurance products in the market do cover death by suicide but usually include a "suicide clause". If the insured dies by suicide during the suicide exclusion period after the policy takes effect — generally one or two years in Hong Kong — the insurer usually will not pay the death benefit and may only refund the premiums paid. If it occurs after this period, the claim is usually handled according to the policy terms.
Term life insurance mainly protects your family. If the insured passes away during the policy term, the death benefit is usually paid to the beneficiary to help maintain their living expenses.
Critical illness insurance mainly protects the insured. If diagnosed with a covered critical illness that meets the policy definition, a lump-sum benefit is usually paid, which can be used for treatment, recovery or living expenses during income interruption.
In short, term life provides financial protection to the beneficiary when the insured passes away, while critical illness pays a lump-sum benefit once the insured is diagnosed with a covered illness meeting the policy definition.
Resources that may help
In the event of any discrepancy or inconsistencies between the English and Chinese versions, the English version shall prevail.
Other protection plans
A term life policy can serve as an important foundation for personal and family protection planning. You may also consider the following plans to further enhance your overall protection:
Remarks:
*Based on the standard premium rate for a 19-year-old non-smoking female (age next birthday) applying for the Zurich Term Life Insurance Plan, with a sum insured of HKD 3 million and a 1-year premium renewable term. The actual premium depends on individual circumstances, underwriting results and policy terms and conditions.
Disclaimer
The above life insurance plans are underwritten by Zurich Life Insurance (Hong Kong) Limited (a company incorporated in Hong Kong) and are intended to be sold only in the Hong Kong Special Administrative Region. If, under the laws of any such jurisdiction, making an offer or invitation in respect of any insurance product or service would be an unlawful act, this material should not be regarded as an offer or invitation to sell any insurance product or service in that jurisdiction.
The above information is for reference only and does not constitute any part of the insurance contract. The above information does not contain the complete terms and conditions of the plans. For the product features, terms and conditions, exclusions and important information (including risk disclosures, where applicable) of the relevant insurance plans, please refer to the product factsheet (if any) and the policy terms and conditions of the respective plans. In the event of any inconsistency, the terms and conditions contained in the policy shall prevail. In the event of any discrepancy between the Chinese and English versions, the English version shall prevail. Zurich reserves the right of final approval and decision on all matters.