Author
Bowtie Team
Updated on
2025-06-13
Disclaimer: This article is translated with the assistance of AI.
Post-pandemic, mainland Chinese are flocking to Hong Kong for top insurance deals! Discover why Hong Kong policies stand out, from better coverage and claims to competitive premiums on medical, life, and critical illness plans. The Bowtie team breaks it down for you!
Lower Premium in Hong Kong
You know, whether it’s medical, life, or critical illness insurance, for the same policyholder and the same coverage amount, premiums in Hong Kong are often about 20% to 30% lower than in mainland China. Buying insurance in Hong Kong is simply more “value for money” compared to the mainland, and it’s all down to these two main reasons:
Risk Pool Differences
Mainland China has a massive population, and in comparison, Hong Kong boasts higher average life expectancy and lower rates of serious illnesses. This means Hong Kong insurance companies deal with a healthier risk pool, leading to lower claim rates and more room to offer premiums that won’t break the bank.
Intense Competition
In this tiny city of over 7 million people, you’ve got dozens of active insurance companies vying for attention with long-term products like medical, life, and critical illness coverage. To stand out, they roll out attractive sign-up offers and premium discounts, all in a bid to snag new customers and maximize business value.
Better Coverage
Medical Coverage
With China’s large population, insurance companies often impose more restrictions on medical coverage to keep things running smoothly—for instance, over a thousand drugs from companies like Pfizer and Boehringer Ingelheim (including cephalosporin antibiotics and prescription meds like Pazufloxacin Mesylate injections) are excluded, leaving you to foot the bill yourself. That’s where Hong Kong’s medical insurance shines for mainland residents.
Plus, mainland medical insurance typically only covers hospitals in China, while Hong Kong’s VHIS offers worldwide protection. Even for top-tier policies with full payouts, the coverage at least extends to hospitals across Asia.
Critical Illness Coverage
Hong Kong’s critical illness insurance packs a bigger punch for your premium—simply put, you get higher coverage amounts compared to similar policies on the mainland.
As for the scope, mainland critical illness policies cover fewer types of serious diseases, often skipping early-stage ones like carcinoma in situ or heart conditions beyond heart attacks, and they rarely include multiple claim options.
Easier Claim Methods
When it comes to critical illness insurance, Hong Kong policies kick in as soon as you’re diagnosed with a specified serious illness, providing compensation with no strings attached on how you use it. Plus, many now cover early-stage conditions like carcinoma in situ or stent procedures. On the flip side, mainland policies often have higher hurdles—fewer cover early illnesses, and some only pay out after you’ve completed treatment, like surgery.
Hong Kong medical insurance typically operates on a reimbursement basis, with many companies offering “no out-of-pocket on discharge” arrangements, so you can focus on getting better without stressing about bills. In contrast, mainland medical insurance might require you to pay upfront and claim back later, depending on your policy and hospital.
Guaranteed Renewal of Medical Insurance
In Hong Kong, the VHIS, which has become the mainstream medical insurance, guarantees renewal for the insured up to age 100. In other words, once the insurance application is approved, the insurance company will allow the policy to renew automatically as long as the policyholder continues to pay the required premiums, and the coverage will remain in effect. However, in mainland China, the renewal process for medical insurance is relatively complicated; “guaranteed renewal” and “automatic renewal” are not the norm, and medical policy renewal generally requires an underwriting process known as an “annual review.”
Less Exclusions
Mainland China’s insurance policies have more exclusions compared to Hong Kong. For example, with life insurance, Hong Kong policies only have a longer waiting period for suicide, and otherwise, as long as the insured passes away, compensation is generally made without questioning the cause of death. In contrast, mainland life insurance has more exclusions, typically including drunk driving, air crashes, HIV infection, nuclear radiation, and suicide.
Shorter Waiting Periods
To prevent fraud, mainland insurance policies generally have longer waiting periods, often 180 days. After the policyholder signs the policy, even if illness occurs or death happens within the first 180 days, the insurance company will only refund the premiums paid and will not provide compensation.
In contrast, Hong Kong’s critical illness policies have short waiting periods (for example, 90 days), VHIS has no waiting period (except for pre-existing conditions that are unknown), and term life insurance generally has no waiting period (except for suicide), allowing the insured to obtain the necessary coverage faster or even immediately.
Currency Options for Insurance Policies
In Hong Kong, savings-type insurance policies generally allow you to choose currencies like Hong Kong dollars, US dollars, or Renminbi for settlement and premium payments. When the Renminbi exchange rate is trending downward, or if the policyholder has offshore funds to deploy, they can opt to settle the policy in foreign currency, which is an advantage not easily available when insuring in mainland China.
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