Adhering to our core intention, changing suicide exclusion clause

Bowtie has been committed to leading the transformation of the insurance industry from the start. We strive to change traditional sales methods, simplify application and claims processes, and eliminate “devil’s clauses.” We firmly believe that excellent product design can not only change customer behavior but also ensure long-term affordable protection. We are not afraid to be different because we always insist on doing the right thing.

Life insurance is protection prepared by customers for their loved ones. If the insured person unfortunately passes away, this protection can support the future lives of their family and loved ones. Three years ago, to align with market product terms, we relaxed the suicide exclusion clause to “if the Insured Person dies by suicide, whether sane or insane, within 1 calendar year from the Policy Effective Date”*

However, after relaxing the terms, we have encountered several claims of suicide in the 13th month and after. We understand that similar tragedies have also occurred with other insurance companies, which is heartbreaking.

We realized that while online term life insurance applications are undoubtedly simple and convenient, they may inadvertently attract people with suicidal tendencies to purchase. To reduce the likelihood of people with suicidal tendencies using suicide to exchange for monetary compensation, adding an “exclusion period” may prevent policyholders from taking out insurance with the intention of suicide.

Sometimes suicide can be impulsive, and extending the suicide exclusion clause to 2 years may give people with suicidal tendencies more time to find other solutions.

While a life coverage from suicide may provide short-term financial support for the family, it also leaves them with wounds that are difficult to heal. Although extending the suicide exclusion period cannot completely prevent tragedies from occurring, we hope that through this change, people with suicidal tendencies will have more time to seek help and change their outlook on life. 

Two years may not be the perfect answer, but we will continue to lead industry development and seek more appropriate protection.

Some may think: “Is Bowtie changing this clause to slow down claims payments due to financial losses?” We emphasize that this change is absolutely not due to financial considerations. Suicidal death claims account for only a small portion of life insurance claims and have minimal impact on profits. When we initially relaxed the suicide exclusion clause, we did not adjust premiums. In fact, if we wanted to “reduce losses,” we could simply raise premiums. The only reason we are changing the clause is that we hope to do the right thing.

We have decided to donate a portion of the first-year premiums from all new life insurance policies purchased in the coming year to a charity in Hong Kong that dedicates to prevent suicide. In the future, we will also do our best to provide emotional support to those in mental need.

If you are facing any emotional distress, you can seek help from professionals:

• Social Welfare Department : 23432255
• The Samaritan Befrienders Hong Kong : 2389 2222
• The Samaritan Befrienders Hong Kong (multiple language) : 2896 0000
• Suicide Prevention Services : 2382 0000
• Caritas Family Crisis Support Centre : 18288
• CEASE Crisis Centre : 18281
• HA Mental Health Support Hotline : 2466 7350
• Mental Health Support Hotline : 18111
• The Hong Kong Jockey Club Charities Trust, Open Up platform : http://www.openup.hk