Author
Bowtie Team
Updated on
2025-06-13
Disclaimer: This article is translated with the assistance of AI.
Dive into LIHKG’s hottest debates on critical illness insurance! Wondering if savings or term insurance are better, the ideal time to buy, or if it’s worth it mid-life? Bowtie clears up 7 key questions to help you make smarter choices!
The Purpose of Critical Illness Insurance
Before exploring the 7 most common questions from various discussion forums, we want to explain the purpose of purchasing Purpose of Critical Illness Insurance to help you understand the following content better.
If the policyholder is diagnosed with critical illness , or experiences certain specific conditions (for example, with Bowtie Term CI : permanent total disability 1 , inability to live independently 2 ), they will receive a lump-sum payout to support living expenses when they can’t work due to illness, and the payout amount is the sum assured.
Some policies offer only 1 payout, while others provide multiple, even unlimited payouts *, depending on the plan.
- 1 The insured must be between 18 and 64 years old when diagnosed with permanent total disability.
- 2 The insured must be between 5 and 64 years old when diagnosed with inability to live independently.
- * This may involve the critical illness insurance waiting period
Question 1: Savings VS Term Regarding Premium Levels
Many hesitate between “buying term critical illness insurance , where you’ll keep paying premiums as you get older; but whole life critical illness is more expensive during the premium payment period,” so they’re unsure which to choose.
On the other hand, some netizens suggest that many insurance companies raise the premiums for pure critical illness to promote savings-linked ones, so it might be better to go for savings critical illness.
Bowtie ： Generally, people often debate whether to “buy Wholelife Critical Illness , which might be tougher upfront” or “buy Term Critical Illness , saving on premiums but facing challenges in old age since payments continue.”
In reality, there’s a smart way to pay lower premiums when you’re young and avoid struggles later in life. When calculating coverage amount , start with three times your annual salary and adjust based on your lifestyle. If you need substantial critical illness coverage but have a limited budget, a term critical illness plan might be the way to go!
If you’re worried about the premium burden of a pure critical illness plan in your later years, consider reducing the coverage amount (or even letting it lapse) to cut costs.
The reason for this is straightforward: Critical illness insurance is meant to provide financial support if you can’t work due to illness, and most people build up significant wealth by retirement, reducing economic pressures. So, the need for high coverage naturally decreases. Plus, the money you save by opting for a pure critical illness plan can be invested elsewhere to bolster your retirement lifestyle .
Does Reducing Coverage or Lapsing Mean Less Claims for Medical Bills?
As we’ve emphasized, critical illness insurance isn’t just about covering medical expenses—it’s for maintaining your lifestyle if you have to stop working. So, reducing or dropping critical illness coverage doesn’t leave you without options for medical costs, as health insurance or cancer-specific plans can still handle those.
Keeping health insurance in your later years is crucial!
Question 2: Savings VS Term Regarding Coverage
Beyond the cost, many people hesitate about term critical illness insurance, assuming that wholelife plans offer better coverage.
Bowtie ： Actually, t erm critical illness insurance does not underperform at all!
1. Term critical illness plans allow pay out more than once
It’s not just savings or wholelife critical illness plans that offer multiple payouts. Plenty of term critical illness options on the market provide multiple, even unlimited, claims. For instance, with Term CI Early Stage and Multiple Cover , it offers up to 5 claims for a maximum of 120% of the sum assured^, effectively covering critical illness recurrence .
2. Term critical illness plans also cover early-stage illnesses
While early-stage critical illnesses might not be as lethal as severe ones, they often require ongoing medication and checks, which can impact your work and income. That’s why critical illness insurance is still essential. Many plans out there include early-stage critical illness coverage, even with multiple protections. Insurers typically handle payouts in two ways:
- Some companies offer “advance” coverage for early-stage illnesses, meaning they pay out 20% of the sum assured upfront, and if a severe illness follows, you get the remaining 80%.
- Others (including Bowtie ) provide “additional” coverage, so you get 20% for an early-stage illness, and if a severe one strikes later, you still receive the full 100%, totaling 120%!
- * Given that 90% of critical illness claims focus on cancer, stroke, and heart disease, Bowtie offers multiple claims for these three major critical illnesses, while the other 39 covered critical illnesses can be claimed once, totaling 5 times, with each payout at 100% of the sum insured. Additionally, early-stage critical illnesses can receive up to 5 payouts at 20% of the sum insured, so the insured can get up to 5 payouts totaling up to 120%.
| Sample Case | For a 30-year-old non-smoking male, insuring HK$4,000,000 in Term CI Early Stage and Multiple Cover only costs HK$529/month;
whereas insuring in Bowtie Critical Illness Insurance only costs HK$363/month. |
Is a single-payout critical illness plan or a multiple-coverage one better?
It depends on your needs. If you’re younger and can afford the extra HK$160 per month in premiums, Bowtie recommends going for Term CI Early Stage and Multiple Cover . If you already have critical illness insurance and just want to boost your coverage, Bowtie Critical Illness Insurance is sufficient!
When Should You Buy Critical Illness Insurance?
Bowtie : The earlier you buy, the better, because if you unfortunately fall ill in the future—big or small—it could affect your underwriting results, potentially leading to non-standard premiums or even denial of coverage.
In fact, critical illnesses are trending younger. Take cancer, for example: According to the Hong Kong Cancer Registry , the cancer incidence rate for the 20- to 44-year-old age group has been rising steadily.
| 2012 | 95.4 cases per 100,000 people |
| 2021 | 117.5 cases per 100,000 people (🔝23.2%) |
So, if you have family to support or need to take care of yourself, even in your 20s, you should consider critical illness insurance. It protects against the impact of illness preventing you from working, which could disrupt your or your family’s life.
But Bowtie gets it—20-somethings might have limited budgets. If that’s you, we suggest starting with a reimbursement-based medical insurance plan first.
Question 4: Do You Still Need Critical Illness Insurance After 40?
Besides discussions on LIHKG, we’ve also kept an eye on other forums like Beauty Exchange and noticed that many people have questions about critical illness insurance.
One of the questions is ” Approaching 40, is it too late to buy critical illness insurance now? “.
Bowtie : Whether a person needs ” Critical Illness Insurance ” is hard to decide based solely on age. Of course, if you’re already 65 and retired with no financial burdens, you can naturally reduce the coverage or even cancel the policy.
If you’re 40 and need to support your family or yourself, a critical illness insurance policy is essential in case you get sick and can’t work, which could affect your or your family’s lifestyle. If you already have critical illness insurance and can afford the premiums, by all means, keep it!
Plus, regularly review your living expenses as life stages change, so do your costs. For example, if you’ve recently had a child, your expenses will naturally go up because you’ll need to cover things like diapers, formula, and even school fees for the next 1-2 years, so you might need to increase your coverage !
Should you go for multiple coverage or single coverage?
Bowtie : For the situation mentioned by netizens, if you have the budget, we recommend opting for multiple coverage, because some critical illnesses have high recurrence rates: Critical illnesses can recur easily, so multiple coverage offers greater protection.
Based on research data, critical illness recurrence rates are high. Take cancer as an example—the recurrence rates are as follows:
| Cancer | Recurrence Rate |
| Ovarian Cancer | 72% 3 |
| Lung Cancer | 30-55% 4 |
| Colorectal Cancer | 30-40% 5 |
| Prostate Cancer | 48% 6 |
With multiple coverage in your critical illness insurance, if you’re unlucky enough to get a critical illness and it recurs a few years later, the protection will still cover your living expenses during recurrence, letting you focus on recovery without the stress!
Question 5: Is Bowtie Term CI Easy to Claim?
Bowtie : Insurance claims don’t have to involve hours of paperwork. Bowtie has developed its own online claims system, where policyholders can simply log in and upload the relevant medical documents to complete the claims application process.
As of October 2021, 80% of claims cases are approved within 10 working days . This timeframe includes not only reviewing the documents but also waiting for medical reports or other supplementary files. Once approved, the claim amount is typically transferred to your account within 3 working days .
If the insured is too ill to handle the claim themselves, Bowtie allows authorized relatives to manage the application on their behalf, making the entire Term CI claims process as smooth and efficient as possible.
Question 6: Does Bowtie Really Have No Agents?
Bowtie : That’s right—Bowtie is a pure online insurance company dedicated to transforming traditional sales methods with technology. You can get all the details on our critical illness products directly from the Bowtie website, without the need to meet any intermediaries—it’s quicker and more straightforward.
Still, online insurance doesn’t mean you’re on your own. If you have questions about Bowtie Term CI products or need help with the claims process, our customer service and medical teams are here to assist and sort out any policy issues for you.
If you prefer, you can also think about visiting a Bowtie customer service center in person. The center’s hours are Monday to Friday from 10:00 AM to 5:30 PM, and it’s a good idea to call the customer service hotline 3008 8123 a day ahead to book an appointment.
Question 7: What Happens to My Bowtie Term CI If Bowtie Goes Bankrupt?
Bowtie : Many people assume that bigger insurance companies are less likely to fail, making their products a safer bet. But is that really the case? In reality, a company’s stability isn’t directly tied to its size—it’s more about accurately assessing risks and having solid reinsurance arrangements in place.
Hong Kong’s regulators keep a tight watch on insurance companies, requiring them to maintain sufficient capital, solvency margins, and reinsurance setups. Bowtie is authorized by the Hong Kong Insurance Authority and backed by investors like Sun Life Financial, Mitsui & Co., the Hong Kong X Foundation, and angel investors, with over HK$400 million raised in its first and B1 funding rounds.
Interestingly, in the last 170 years, no insurance company in Hong Kong has ever gone bankrupt—mergers might happen, but that’s about it. Even if a merger occurs, your policy is still a binding contract, so the new company has to honor it, keeping your coverage intact.
- 3 Bowtie team integrated the average from multiple medical reports; Reference data sources: Optimizing treatment in recurrent epithelial ovarian cancer. Expert review of anticancer therapy, 2017, 17.12: 1147-1158. Management of relapsed ovarian cancer: a review. Springerplus, 2016, 5.1: 1-11. Cancer Facts & Figures 2018 Special Section: Ovarian Cancer. American Cancer Society. Ovarian Cancer Research Alliance website
- 4 According to Verywell Health website, Non-small cell lung cancer (NSCLC) is the most common type of lung cancer, with a recurrence rate of 30-55%.
- 5 According to Verywell Health website, about 30-40% of colorectal cancer patients experience recurrence after surgery.
- 6 A medical journal paper shows that the 10-year cumulative recurrence rates for low-, medium-, and high-risk prostate cancer patients are 17.9%, 31.9%, and 47.9%, respectively. Reference source: Prostate-specific antigen doubling time subsequent to radical prostatectomy is a predictor of outcome following salvage external beam radiation therapy: a single-centre experience. Scandinavian Journal of Urology, 2015, 49.3: 218-223.
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