Term Life Insurance Comparison


Term Life Insurance Comparison

Buying life insurance is like making a long-term commitment, so it's best to compare different options and choose the most suitable term life insurance plan before making a decision. Let's compare the 4 major term life insurance plans in 6 different aspects, including premiums and coverage.

1. Compare Term Life Premiums

Assuming the policyholder is a non-smoker aged 25 to 40 and the coverage amount is HKD 1 million, the monthly premiums offered by different companies are as follows:

AgeBowtie Term Life#Insurer A*Insurer B^Insurer C**
AgeBowtie Term Life#Insurer A*Insurer B^Insurer C**
  • # Guaranteed Annual Renewal
  • *Renewable every 5 years/10 years/20 years
  • ^Renewable every 1 year/5 years/10 years
  • **Renewable every 10 years
  • The above premiums are the pre-discount prices
  • 💰 represents the cheapest option, 💰💰 represents the most expensive option
  • The above premiums were taken from the official websites of each insurance company on November 10, 2021. Insurance companies may update their premiums from time to time, so please refer to the official website for the latest fees

If you want to learn about premiums for other age groups, you can refer to this article to learn more.

2. Life Insurance Payments

To facilitate policyholders, many insurance companies provide multiple payment methods for paying premiums:

Bowtie Term LifeInsurer AInsurer BInsurer C
Credit Cards
  • FPS
  • Online Banking
  • Octopus Card
  • Cheque/ e-cheque
  • ATM Transfer
  • Cash
  • PPS (enables payment of bills through phone, internet or ATM)
  • Auto-pay
Designated Bank Transfer
  • Online Banking
  • Octopus Card
  • Credit Cards
  • Cheque
  • ATM
  • Cash

Bowtie desires to give customers freedom. They allow individuals to apply for insurance at any time and cancel their policy whenever they need to. Payments can be made monthly using Stripe Payment and credit cards.

3. Flexibility to Change Life Insurance Coverage

Bowtie Term LifeInsurer AInsurer BInsurer C
Can change coverage amount upon policy renewalCan only increase coverage amount before the first policy yearCan only decrease coverage amountCan only request an increase in coverage amount during the first policy year

Bowtie Term Life does not have any restrictions on the deadline for changing coverage amount. If policyholders wish to increase or decrease their coverage amount in the future, they can do so upon policy renewal every year. They will not lose the opportunity to adjust their coverage amount due to any delay.

4. Term Life Insurance Renewal Term

Bowtie Term LifeInsurer AInsurer BInsurer C
1 Year5 /10 /20 Years1 /5 /10 Years10 Years

The renewal term of a term life insurance policy refers to the number of years after which the policy will be renewed. For example, a 35-year-old man buys a policy that is renewable every 5 years, with fixed premiums for the first 5 years. When the policy is renewed at age 40, the premium will be recalculated based on his age and maintained for the next 5 years, and so on. If the policy is renewable annually, the premium will be adjusted each year upon renewal.

Using Bowtie Term Life as an example, since the coverage period is only one year after each annual renewal, the insurance company only needs to consider the policyholder’s risk for the next year. Therefore, the premiums are much cheaper. Although the premiums may be adjusted annually (based on the actual risk determined by age, fair pricing), Bowtie will inform the policyholder of the premium budget for the next 5 years before confirming payment, helping the policyholder to plan their budget in advance.

It should be noted that some annually renewable term life insurance policies in the market do not guarantee renewal. This means that policyholders may be directly rejected or temporarily uninsured when the coverage period ends, resulting in a “coverage gap”. Bowtie promises guaranteed annual renewal until the age of 85, so policyholders do not have to worry about suddenly losing their coverage and can enjoy peace of mind.

5. Exclusions of Term Life Insurance

Exclusions of term life insurance are generally minimal, and typically only include suicide within the first year after the policy is issued. For details, please refer to the table below:

Bowtie Term LifeInsurer AInsurer BInsurer C
Death caused by suicide in the 1st policy yearDeath caused by: Suicide within 13 months from the Policy Commencement DateDeath caused by suicide in the 1st policy yearDeath caused by suicide in the 1st policy year

6. Cooling-off Period of Term Life Insurance

The cooling-off period is the period given by an insurance company for a policyholder to review the policy terms. If the policyholder cancels the policy during the cooling-off period, they will receive a full refund of the premium paid. Since the Insurance Authority requires life insurance policies to have a cooling-off period of at least 21 days, every life insurance policy has a cooling-off period, but the length of time varies among different insurance companies:

Bowtie Term LifeInsurer AInsurer BInsurer C
21 Days21 Days30 Days21 Days
Next article - Term VS Whole Life Insurance
What are the differences between term life insurance and whole life insurance? Have you figured out what type of insurance you need? How should coverage and premiums be calculated?
Learn more


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