Author
Bowtie Team
Updated on
2025-05-30
Disclaimer: This article is translated with the assistance of AI.
What to consider when buying health insurance for your parents? Among the many affordable VHIS on the market, Bowtie guides you on selecting the most cost-effective plan, and offer key considerations for buying or switching insurance for your parents. Read on for examples on how to save on taxes with VHIS!
Why Should You Buy VHIS for Your Parents?
1. The More Mature You Get, the Higher the Medical Needs
There are 4 million impatient patients aged 65 or above. I t is found that individuals aged 65 to 80 or above have inpatient days that are more than 4 times higher than other age groups.
| Patient Inpatient Days | 2021 Population | Average Inpatient Days per Person | |
| Under 18 years old | 585,972 | 967,679 | 0.61 |
| 18 to 64 years old | 3,273,378 | 4,674,544 | 0.7 |
| 65 years old or above | 5,699,990 | 1,450,858 | 3.92 |
| Total | 9,559,961 | 7,093,081 | 1.22 |
51% users of the discharge cases and deaths, including inpatient and day inpatient cases, is aged 65. Individuals aged 65 or above are more likely to be hospitalized and even pass away due to admission reasons.
| Inpatient and Day Inpatient Discharge Cases and Deaths | 2021 Population | Average Inpatient and Day Inpatient Discharge Cases and Deaths per Person | |
| Under 18 years old | 165,048 | 967,679 | 0.17 |
| 18 to 64 years old | 793,278 | 4,674,544 | 0.17 |
| 65 years old or above | 997,621 | 1,450,858 | 0.69 |
| Total | 1,955,999 | 7,093,081 | 0.24 |
The above statistics reflect that the elderly have a much higher demand for medical services compared to middle-aged or young people .
2. Long Waiting Times at Public Hospitals
Although Public hospitals provide relatively affordable inpatient, examination, and treatment services for the elderly, limited resources and high demands cause long waiting times.
According to Hospital Authority data , taking cataracts, one of the most common eye conditions among the elderly, as an example, there are nearly 68,000 people waiting for cataract surgery in ophthalmology as of March 31, 2025:
| Hospital Cluster | Number of Cases Waiting |
| Hong Kong East | 8,809 |
| Hong Kong West | 3,419 |
| Kowloon Central | 11,731 |
| Kowloon East | 10,247 |
| Kowloon West | 11,918 |
| New Territories East | 10,217 |
| New Territories West | 11,513 |
The following are the waiting times for patients who have completed cataract surgery:
| Hospital Cluster | Median Waiting Time (Months)* | 90th Percentile Waiting Time (Months)* |
| Hong Kong East | 8 | 31 |
| Hong Kong West | 10 | 12 |
| Kowloon Central | 27 | 32 |
| Kowloon East | 25 | 30 |
| Kowloon West | 14 | 52 |
| New Territories East | 12 | 29 |
| New Territories West | 15 | 51 |
If a patient wants to schedule cataract surgery in a public hospital, it could take up to about 4.5 years to receive the procedure. If one wishes to treat cataracts as soon as possible, one may consider undergoing surgery at private hospitals .
Even though cataract surgery fees are not “astronomical,” paying over ten thousand dollars for the surgery may still cause financial burden. Moreover, if elderly parents suffer from chronic diseases or even critical illnesses (such as heart disease / stroke , etc.), treatment costs can be substantial.
If you are between 20 and 40 years old, your parents may be approaching retirement age. Once they retire, they might not be able to pay for treatment costs themselves, and the financial burden would fall on you. How to prepare for it? Your parents’ VHIS can serve as your “emergency kit”!
- * The median and 90th percentile of waiting times refer to the fact that 50% and 90% of patients who have completed surgery can undergo the procedure in less than the displayed waiting time.
Want to ensure your parents receive quality treatment in time if they fall ill? Get VHIS for your parents right away!
What are the benefits of buying VHIS for parents?
1. Maximum enrolment age is 80 years old
Unlike traditional medical insurance, which has a maximum enrolment age of only 65 – 70 years old, all insurance companies participating in the VHIS plan must consider applications from Hong Kong residents aged between 15 days and 80 years old, and guarantee renewal up to 100 years old.
For example, Bowtie VHIS Standard promises renewal up to 100 years old, without affecting the decision based on the insured’s health condition or claims history. Meanwhile, Bowtie VHIS Flexi and Bowtie Pink guarantee lifelong renewal with no lifetime claim limit.
In other words, even as parents age, VHIS will continue to cover their medical expenses, reducing financial burdens and ensuring they have medical support in their later years.
2. Deductibles reduce premium burdens
As the insured gets older, the risk of illness increases, leading insurance companies to raise premiums due to higher risks or even refuse coverage. Even if traditional medical insurance accepts the application, the coverage amount may not fully meet the insured’s needs.
If parents already have medical insurance, choosing a VHIS plan without a savings component allows you to “top up” their coverage at a lower cost and select deductibles as needed, effectively providing protection at a lower price.
Even if parents do not have medical insurance and need to purchase VHIS, opting for a plan with deductibles results in lower premiums compared to zero-deductible plans. Generally, these costs are lower than traditional or savings-type medical insurance while offering more comprehensive coverage, making them more cost-effective.
In fact, many people in Hong Kong aged 65 and above are already aware of public hospital waiting times and have purchased a medical insurance policy for themselves.
According to a research brief from the Legislative Council Secretariat in 2018 on Health Insurance for Individuals in Hong Kong , the proportion of Hong Kong residents purchasing individual medical insurance rose from 20% to 34% over 10 years. If the same growth rate continues, by 2022, the proportion purchasing individual medical insurance would be close to 40%.
Among them, the number of people aged 65 and above covered has increased from 4.9% in 2009 to 10.4% in 2016. If the same growth rate persists, by 2022, more than 15.1% of seniors would be insured.
Whether it’s children buying insurance for their parents or parents insuring themselves, everyone should get a medical insurance for their own healthcare benefits .
Planning to Buy VHIS for Parents but Worried About High Premiums?
As people age, the risk of illness increases, so insurance for the elderly is more expensive than for younger people, and premiums may be hard to afford. Therefore, you can consider purchasing Online Insurance , which excludes commissions and other administrative fees, making premiums cheaper than those from traditional insurance companies.
Since 2018, when the Insurance Authority granted the first virtual insurance license, more people have recognized the benefits of online insurance – offering similar or greater coverage at lower premiums. So, when buying insurance for parents or reviewing existing coverage, you may also consider switching to online health insurance .
How Much Tax Is Deducted By Buying VHIS for Parents? Real Case Study
Tax deduction is a major benefit of purchasing VHIS, allowing the policyholder to claim deductions for themselves and eligible dependents, including parents, for the actual annual premiums paid (up to HK$8,000).
If parents are around 60 years old and nearing retirement with no income, it is recommended that children become the policyholders, as this can help with long-term tax savings for you.
For example, for a 60-year-old non-smoking male, Bowtie VHIS Flexi Regular has a monthly premium of HK$884 , totaling an annual premium of $10,608 . Since the tax deduction limit per specified insured dependent is $8,000, at the highest tax bracket, you can save up to $1,803 per tax year!
Under the government’s tax system, taxpayers can purchase VHIS for family members and claim tax deductions on the premiums. Does buying for more family members mean saving more tax? Bowtie uses the “Mr. Wong Family 👨🏼🦲” as a blueprint, with 4 hypothetical scenarios to show you how to maximize tax savings!
Assume Mr. Wong and his wife 👨🏼🦲👩🏽 have a family of eight, with premiums as follows:
- Mr. Wong and his wife 👨🏼🦲👩🏽 are employed and both 40 years old
- Mr. Wong 👨🏼🦲 has the highest income, reaching the top tax rate of 17%
- Having him claim deductions for all VHIS will maximize tax savings!
- Both sets of parents are retired, all 60 years old
- Both children are about to graduate, both 20 years old
Scenario 1: Mr. Wong Only Insures Himself 👨🏼🦲
Since Mr. Wong is employed and covered by group medical insurance , he purchases VHIS premium ($80,000 deductible) . This complements his group insurance, reducing costs while providing greater coverage. After calculation, the tax deduction amounts to over $510.
Policyholder: Mr. Wong 👨🏼🦲
| Insured Person | Premium | x Tax Rate | = Tax Deduction |
| Mr. Wong 👨🏼🦲 | $3,000* | x 17% | = $510 |
Scenario 2: Mr. Wong and His Wife Both Insured 👫
Mrs. Wong 👩🏽 is also employed and covered by group medical insurance , so Mr. Wong 👨🏼🦲 insures her under the same plan: VHIS premium ($50,000 deductible) . When both are insured, the tax deduction is more than double that of Mr. Wong alone, exceeding $1,400.
Policyholder: Mr. Wong 👨🏼🦲
| Insured Person | Premium | x Tax Rate | = Tax Deduction |
| Mr. Wong 👨🏼🦲 | $3,000^ | x 17% | = $510 |
| Mrs. Wong 👩🏽 | $3,000^ | x 17% | = $510 |
| Total | $6,000 | $1,020 |
Scenario 3: Mr. Wong, His Wife, and Their Two Children Insured 👨👩👧👧
Since Mr. Wong’s 👨🏼🦲 children are about to graduate and expected to be covered by group medical insurance, he insures them under the same VHIS premium ($80,000 deductible) plan.
After calculation, the tax deduction is 1.6 times higher than for two people, reaching $1,640.
Policyholder: Mr. Wong 👨🏼🦲
| Insured Person | Premium | x Tax Rate | = Tax Deduction |
| Mr. Wong 👨🏼🦲 | $3,000^ | x 17% | = $510 |
| Mrs. Wong 👩🏽 | $3,000^ | x 17% | = $510 |
| Son 👦🏽 | $1,824 # | x 17% | = $310 |
| Daughter 👧🏽 | $1,824 # | x 17% | = $310 |
| Total | $9,648 | $1,640 |
Scenario 4: The Entire Wong Family of Eight Insured 🏘️
As you might have guessed, when Mr. Wong insures the entire family of eight 🏘️, the tax deduction will be even higher. This confirms that insuring spouses, and even helping parents and family members, can lead to more tax savings!
Without further ado, let’s see how much tax is saved when Mr. Wong insures the whole family of eight 🏘️. Since the four elderly members are retired and lack group medical insurance to cover the high deductibles, he insures each with a VHIS standard plan , which is reasonably priced while providing sufficient coverage (up to $1 million annually).
After calculation, the tax deduction is 3.14 times higher than for four people, reaching $5,153.
Policyholder: Mr. Wong 👨🏼🦲
| Insured Person | Premium | x Tax Rate | = Tax Deduction |
| Mr. Wong 👨🏼🦲 | $3,000 1 | x 17% | = $510 |
| Mrs. Wong 👩🏽 | $3,000 1 | x 17% | = $510 |
| Son 👦🏽 | $1,824 2 | x 17% | = $310 |
| Daughter 👧🏽 | $1,824 2 | x 17% | = $310 |
| Mr. Wong’s Father 🧓🏼 | $5,268 3 | x 17% | = $896 |
| Mr. Wong’s Mother 👩🏼🦳 | $5,064 3 | x 17% | = $861 |
| Mrs. Wong’s Father 👴🏼 | $5,268 3 | x 17% | = $896 |
| Mrs. Wong’s Mother 👵🏼 | $5,064 3 | x 17% | = $861 |
| Total | $30,312 | $5,153 |
Does Buying a More Expensive Plan Mean Saving the Most on Taxes?
However, many people think that buying a more expensive VHIS for themselves or family members will allow for more tax deductions and savings. Indeed, the more expensive the plan, the more tax you can deduct.
But the most cost-effective approach is: to buy an affordable VHIS plan with sufficient coverage!
Let’s extend the calculation for the Wong family of eight 🏘️ with different saving scenarios.
- Saving Scenario A: Everyone buys an expensive VHIS plan, reaching the $8,000 premium cap, to deduct more tax!
- Saving Scenario B (i.e., Scenario 4): Everyone buys an affordable plan with sufficient coverage, then claims tax deductions!
| Wong Family of Eight 🏘️ | Saving Scenario A | Saving Scenario B (i.e., Scenario 4) |
| Annual Actual Premium Paid | $64,000* | $ 30,312 |
| Eligible Premium for Deduction | $64,000* | $ 30,312 |
| Tax Deduction (Assuming 17% tax rate*) |
$64,000 x 17% = $10,880 |
$30,312 x 17% = $5,153 |
| Annual Final Expenditure (Actual Premium Paid – Tax Deduction) |
$64,000 – $10,880 = $53,120 |
$30,312 – $5,153 = $25,159 |
| *For simplicity, assume each person’s annual premium is $8,000. | ||
From the “Annual Final Expenditure” , it’s clear that Saving Scenario B (i.e., Scenario 4) saves more than twice as much as Saving Scenario A!
Buying an affordable VHIS plan with sufficient coverage and then claiming deductions is the “most cost-effective option”!
- * Based on the standard premium for a 40-year-old man insuring Bowtie Pink (Ward) with an $80,000 deductible.
- ^ Based on the standard premium for a 40-year-old man/woman insuring Bowtie Pink (Semi-Private) with an $80,000 deductible.
- # Based on the standard premium for a 20-year-old man/woman insuring Bowtie Pink (Semi-Private) with an $80,000 deductible.
- 1 Based on the standard premium for a 40-year-old man/woman insuring Bowtie Pink (Semi-Private) with a $50,000 deductible.
- 2 Based on the standard premium for a 20-year-old man/woman insuring Bowtie Pink (Semi-Private) with a $50,000 deductible.
- 3 Based on the standard premium for a 60-year-old man/woman insuring Bowtie VHIS Standard.
- * For ease of reading, all figures have been rounded to the nearest integer; any content related to Bowtie products in this article is for reference and educational purposes only. Customers should refer to the detailed terms and conditions on the relevant product pages.
Real Case: Saving on Bowtie VHIS Premiums!
Want to know how much you can save by reviewing your parents’ existing medical coverage and switching them to Bowtie VHIS?
Real Example: Mr. Su
Mr. Su’s mother took out Insurance Company A ‘s VHIS Standard Plan several years ago. Recently, she learned about Bowtie and decided to compare options before renewal.
Since the VHIS Standard Plan options on the market offer similar coverage, the main factor to compare is premiums . For a 65-year-old insuring with Bowtie, the total premium up to age 80 can save HK$52,660 compared to Insurance Company A ‘s VHIS Standard Plan.
| Age | Insurance Company A VHIS Standard Plan Annual Premium |
Bowtie VHIS Standard Plan Annual Premium |
Difference |
| 65 | HK$8,429 | HK$6,708 | HK$1,721 |
| 66 | HK$8,774 | HK$7,044 | HK$1,730 |
| 67 | HK$9,165 | HK$7,296 | HK$1,869 |
| 68 | HK$9,587 | HK$7,560 | HK$2,027 |
| 69 | HK$10,061 | HK$7,920 | HK$2,141 |
| 70 | HK$10,528 | HK$8,304 | HK$2,224 |
| 71 | HK$11,187 | HK$8,700 | HK$2,487 |
| 72 | HK$11,878 | HK$9,036 | HK$2,842 |
| 73 | HK$12,608 | HK$9,408 | HK$3,200 |
| 74 | HK$13,382 | HK$9,780 | HK$3,602 |
| 75 | HK$13,971 | HK$10,164 | HK$3,807 |
| 76 | HK$14,579 | HK$10,464 | HK$4,115 |
| 77 | HK$15,219 | HK$10,680 | HK$4,539 |
| 78 | HK$15,885 | HK$10,896 | HK$4,989 |
| 79 | HK$16,550 | HK$11,124 | HK$5,426 |
| 80 | HK$17,267 | HK$11,328 | HK$5,939 |
Things to Know When Buying or Switching Health Insurance for Parents
1. Choose a Plan with Affordable Premiums but Sufficient Coverage
From the above examples, a cheaper health insurance plan may not have worse coverage than a more expensive medical insurance plan, so if you are planning to buy insurance for your parents and reviewing their existing coverage, consider VHIS !
VHIS, regulated by the Food and Health Bureau, includes a minimum of 12 basic coverages, which is more comprehensive than many traditional medical insurance plans, including:
- Hospital ward and meals
- Miscellaneous expenses
- Attending physician’s ward rounds fees
- Specialist doctor fees
- Intensive care
- Surgeon fees
- Anesthetist fees
- Operating room fees
- Specified diagnostic imaging tests (which traditional medical insurance may not cover)
- Specified non-surgical cancer treatments (which traditional medical insurance may not cover)
- Pre-hospitalization or post-hospitalization / pre- and post-day surgery outpatient care
- Psychiatric inpatient treatment (which traditional medical insurance may not cover)
Moreover, VHIS covers unknown pre-existing conditions, congenital diseases, and day surgery , which most traditional medical insurance plans do not.
2. Carefully Compare Coverage Terms
Carefully compare the coverage items of the existing plan and the new plan, and pay attention to policy terms, such as waiting periods .
It is worth noting that VHIS has a waiting period for ” unknown pre-existing conditions “; for example, with Bowtie VHIS , the waiting period for unknown pre-existing conditions is 90 days 1 , after which 100% of the coverage limit can be claimed.
If needed, consult professionals to understand the risks and precautions related to purchasing insurance.
3. Be Aware of the “Gap Period” to Avoid Losing Coverage
If you have chosen a suitable health insurance for your parents, do not cancel the original medical insurance policy before the new policy is approved, as your parents will not be covered until then.
If you have already canceled the original medical insurance, your parents will have no coverage during this “gap period.” If an accident or illness occurs, you will have to pay the treatment costs yourself, and it could even affect the approval of the new policy (because during underwriting to policy approval, if the insured person’s health condition changes, the policyholder has a responsibility to inform the insurance company, and failure to do so could affect future claims).
Therefore, you should apply for the new health insurance first, and only cancel the old policy after the new one is approved.
4. Pay Attention to Your Own Health Condition
Pre-existing conditions diagnosed before purchasing insurance may not be covered by the new policy. If your parents are currently unwell, first understand the underwriting results before deciding to switch policies to avoid losing existing coverage.
- 1 Bowtie VHIS Flexi Regular and Bowtie VHIS Flexi Plus, as well as Bowtie Pink VHIS, have a waiting period of 90 days for unknown pre-existing conditions.
How to Find the Cheapest VHIS?
👉🏼You can use third-party insurance platforms for comparison! Learn More !
Underwriting is required when switching to any company. Underwriting . However, if you apply with a traditional insurance company and are ultimately deemed ineligible, it could leave a record of “declined coverage,” affecting your applications with other companies.
But Bowtie’s approach is different; you only need to provide personal details like your name and email when deciding to purchase. In other words, whether you pass underwriting at Bowtie or not, it won’t affect your or your parents’ insurance records.
How to Buy Health Insurance for Your Parents?
Whether applying online or through an insurance intermediary , you will need to prepare the following documents:
- Your parents’ ID cards
- Your parents’ medical records, or answer underwriting questions with them online or in front of the insurance intermediary
If your parents are unable to manage their policy, claims, or other matters, you can choose to become the policyholder on their behalf, handling everything such as premium payments, policy administration, and claims .
More 2024/25 tax filing strategies :
- Fiscal Budget Case Information: Budget Cheat Sheet | Tax Refund Arrangements
- Tax Filing Information: Tax Filing | Online Tax Filing | Tax Calculator | First-Time Tax Filing Guide | Self-Employed / Freelance Tax Filing | Departure Tax Clearance
- Tax Payment Information: When to Pay Taxes | Late Tax Payment | Personal Income Tax | Salaries Tax | Profits Tax
- Tax Exemption Strategies: Personal Tax Exemption Calculation | Child Tax Allowance | Parents Tax Allowance
- Tax Deduction Strategies: Tax Deduction Trio | MPF Tax Deduction | Tax-Deductible Annuity | Deferred Annuity | Mortgage Tax Deduction | Rent Tax Deduction
- VHIS Tax Deduction: VHIS Tax Deduction Strategies | VHIS Tax Deduction Examples | VHIS Tax Deduction Application
- Company Tax Filing: Company Tax Filing
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