Does life insurance in Hong Kong cover death by suicide?
Does term life insurance cover death by suicide?
Most term life products on the market cover suicidal death. However, insurance companies may include special provisions that limit the payment of benefits. For instance, benefits are only paid if “the insured (whether sane or insane) commits suicide after the first one to two (1/2) year(s) that the policy is in force.”
Comparing term life insurance policies in terms of coverage for suicide
| Bowtie | Other insurers | |
| Coverage for Suicide | ✔ | ✔ |
| Suicide Exclusion | Covered only after 1 year from the effective date of the policy | Covered only after 1-2 year(s) from the effective date of the policy |
| 10-year average annual premium # | HK$852 | HK$870 – 4,550 |
- #Sample rates of a $1 million policy for a 35-year-old male non-smoker
Bowtie updated the suicide clause without raising premiums
Bowtie strives to close the protection gap with our pure protection product so that policyholders can obtain greater life protection at a fair and affordable price. Heeding our customers’ feedback, Bowtie decided to remove most of the exclusions, rendering our term life insurance policy more appealing.
Therefore, on 15 September 2021, Bowtie removed five major exclusions altogether without raising premiums:
- HIV and AIDS;
- Drugs, suicide, and illegal activities;
- Participation in any armed forces or peacekeeping activities;
- Nuclear, biological, and chemical events, or nuclear, chemical, and biological terrorism;
- War and terrorism
At the same time, we improved the suicide provision, and the updated clause is as follows:
“The insured, whether sane or insane, commits suicide within one (1) year from the effective date of the policy.”
In other words, death by suicide one year after the policy is in force will be covered under the policy.
How much does Bowtie Term Life cost?
| 30-year-old male non-smoker^ | 30-year-old female non-smoker^ | |
| Premium | HK$150 | HK$115 |
- ^Estimated premiums for a $4 million Bowtie Life Insurance policy
- The monthly premiums above are for reference only. The actual premiums are affected by time, inflation, underwriting, Insurance Authority levies and other factors.
- 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 webpage.
