Insurance

Comparing 10 Popular Saving Insurance in Hong Kong

Author Bowtie Team

Updated on 2025-06-19

Disclaimer: This article is translated with the assistance of AI.

Discover savings plans designed for capital protection and death benefits. Bowtie explains the differences between short-term and long-term options, compares 10 top products, shares essential tips, and uncovers common pitfalls to help you make smart choices.

What is a Savings Plan?

Savings plans generally refer to insurance plans offered by insurance companies or banks, with the main goal of preserving capital and saving, while providing limited death benefits. Savings plans can be divided into short-term and long-term plans based on the policy term.

Differences Between Short-term and Long-term Savings Plans

Short-term Savings Plan and long-term savings plans have the following main differences:

*Product*	*Short-term Savings Insurance Plan*	*Long-term Savings Insurance Plan*
*Definition*	Generally refers to savings policies with a shorter contribution period and guaranteed returns	Generally refers to savings life insurance with a longer contribution period
*Contribution Period*	Typically ranges from 1 to 5 years	Can extend up to 10 to 20 years
*Contribution Method*	Generally options include lump sum, monthly, quarterly, or annual payments	Generally options include monthly, quarterly, or annual payments
*Savings Returns*	Generally provides guaranteed returns	Generally combines guaranteed returns and non-guaranteed returns (dividends)
*Life Insurance Component*	Relatively low, generally offering only limited death benefits	Relatively low; for the same premium level, death benefits are generally lower than those of whole life or term life products
*Target Audience*	Individuals who want to achieve capital preservation and growth in the short term	Individuals who aim to meet certain savings goals over the medium to long term (such as education funds or retirement funds)

Short-Term Savings Plans: Comparison of 5 Popular Products

Here’s a detailed comparison of the top 5 short-term savings insurance plans currently on the market:

*Insurance Company*	W Company	Z Company	B Company	H Company	F Company
*Currency*	HKD	HKD	USD	HKD	USD
*Premium Payment Period*	1 year or prepaid	1 year or prepaid	1 year or prepaid	2 years	1 year or prepaid
*Coverage Period*	3 years	3 years	5 years	5 years	8 years
*Guaranteed IRR at Maturity*	4.14%	2.5%	2.71%	3.8%	4.3%
*Guaranteed Breakeven Period*	1 year	1 year	Immediate	4 years	5 years
*Minimum Total Premium*	HK$6,000	HK$1	$4,000 USD	HK$14,400	$6,250 USD
*Guaranteed Return Ratio at Maturity*	113%	107.7%	114.3%	118.2%	140.1%

Long-Term Savings Plans: Comparing 5 Popular Products

Below is a detailed comparison of 5 popular long-term savings insurance plans currently available on the market (assuming a 35-year-old male applicant):

*Product*	Company P	Company F	Company A	Company X	Company C
*Currency*	US Dollar
*Premium Payment Period*	5 years
*Total Premium*	100,000 US Dollars
*Coverage Period*	20 years
*Guaranteed Return Ratio*	102.8%	102.7%	100.6%	100.4%	102.5%
Projected Return Ratio*	267%	268.4%	263.6%	253.9%	247.7%

* The expected returns of long-term savings insurance plans consist of guaranteed returns and non-guaranteed bonuses. The insurance company will determine the level of bonus distribution based on factors such as investment strategy and performance, claims experience, and operating expenses. The bonuses ultimately received by policyholders may be higher or lower than the expected investment returns in the benefit illustration document. In extreme cases, non-guaranteed bonuses may become zero.

4 Key Considerations Before Buying a Savings Plan

Clarify Your Savings Goals

Before purchasing any savings insurance plan, it’s wise to understand your personal savings goals and then choose a product with the right term and type. For example, if your goal is to combat inflation over 3-5 years, you shouldn’t consider long-term savings insurance plans.

Watch for Guaranteed Return Rates and Bonus Realization Rates

Whether you’re eyeing a short-term or long-term savings plan, carefully compare the guaranteed return rates listed in the policy, as these form the baseline of your returns. Long-term plans often lure customers with impressive projected returns, but remember, these include non-guaranteed bonuses, which are uncertain. It’s smart to check the insurance company’s past bonus realization rates to avoid disappointment when your overall returns are tallied.

Assess Your Contribution Ability

Before signing a savings plan policy, thoroughly review your ability to make contributions, evaluating the amount and duration—especially for long-term plans lasting 10 years or more. If you can’t keep up payments or need to cash out early, the cash value you get back might be less than what you’ve paid in, leading to real losses.

Choose the Policy Currency Wisely

If your savings policy isn’t in Hong Kong dollars—for instance, it’s in U.S. dollars or renminbi—keep an eye on exchange rate risks. Say you buy a 5-year renminbi savings plan, but the renminbi depreciates over that time; your savings returns (in Hong Kong dollars) could end up lower than expected.

Are There Traps in Savings Plans?

Online discussion forums often talk about Savings Insurance Plans Have Pitfalls . At the end of the day, these discussions stem from the significant uncertainties and limitations in long-term savings policies, like how agents frequently promote high projected returns that include non-guaranteed bonuses, and the policies’ low flexibility—early surrender could mean financial losses. So, if you’re thinking about buying a savings plan, first get to know the features and restrictions of different options, and then decide if they align with your needs and expectations.

Why ‘Buy Term, Invest the Rest’ Outshines Long-Term Savings Insurance

Besides opting for long-term savings insurance plans with lower guaranteed returns (you can use Bowtie’s exclusive BTIR Calculator to understand the actual return levels of these policies) , you might consider the ‘Buy Term, Invest the Rest’ strategy. This involves purchasing pure protection Term Life insurance and pairing it with short-term savings insurance or other investment products that offer higher guaranteed returns. This approach lets you enjoy life insurance coverage and impressive savings returns while keeping your premium costs low.

Bowtie Term Life is a term life insurance product that provides a lump-sum payout to beneficiaries upon the insured’s death. Its key features include:

Pure protection, with no savings component
Under the same premium, coverage is 40 times higher than typical savings life insurance products*
For every HK$1,000,000 in coverage, the monthly premium is as low as HK$38

* Based on the standard premium for a 35-year-old non-smoking female insuring HK$1,000,000; Term Life Insurance: Data as of July 1, 2020, for standard premiums of term life insurance (20-year coverage period) in the market

⚡Hurry! Bowtie Term Life Flash Deal Ends Soon!

Worried about maintaining your family’s lifestyle if the breadwinner passes away unexpectedly? Bowtie Life Insurance offers comprehensive coverage to protect your loved ones’ future.

For a limited time, use the exclusive Bowtie Blog promo code [BLOGENGINSURE] to get an incredible 65% off your first year’s premium! Secure your family’s financial future at an unbeatable price today!

Author

Bowtie Team

The Bowtie Life Insurance Company Limited is an authorized life insurance company and Hong Kong’s very first virtual insurer approved. Through the use of modern technology and medical expertise, Bowtie offers an agent-free, commission-free and more convenient online platform for customers to quote, apply and claim for Voluntary Health Insurance Scheme (VHIS) anytime anywhere. Bowtie is ranked first in the direct channel sales throughout 2021. Stay up to date at www.bowtie.com.hk