Illustration Example 1 – Jason, aged 40, with 2 kids
Occupation: Senior Business Development Manager in a logistics company
Family situation: Married for 5 years; living with his wife Helen, a full-time housewife, a boy aged 4 and a girl aged 2
Objective: Prepare for the long-term needs of his children and target to retire by age 60
|Monthly Income and Expenses||HKD|
|Family and Personal Expenses||(35,000)|
|Education Saving Plans||(8,000)|
|Life and Hospital Cash Plans||(4,000)|
Jason considers his family, especially his two kids, his top priority. He strives to give his children a good start by offering them the best education possible. As he believes that studying abroad would help the kids cultivate global perspectives and enhance their career opportunities, Jason has established an overseas education fund for them.
Recently, the news about Mark reminded Jason of his need for protection. Mark, his high school buddy, was diagnosed with lung cancer. Like many others preoccupied with his job, Mark has no medical protection plan of his own. The medical insurance from Mark’s employer is far from adequate to cover his medical expenses. As he undergoes treatments, he can no longer work and that throws his family into deep financial crisis and emotional distress. Mark’s case reminds Jason of his own family – as he is the breadwinner, any critical illness that prevents him from working would induce a huge financial burden on his family.
To prevent this from happening, Jason has a protection need against cancer, which often involves extensive treatments, prolonged recovery and carries the risk of recurrence and metastasis. It is commonly estimated that cancer would take up to 5 years for treatments and full recovery. Hence, to protect his family against the potential financial impact, Jason considers an insured amount of HKD3.9 million* would suit his need in covering his income for 5 years.
However, for every month a considerable amount of Jason’s monthly income goes towards the family expenses and his children’s education savings. With his financial constraint, Jason should focus on protection-based solutions against common critical illnesses with a long-term impact on his living standard, such as cancer. Jason should choose a protection plan against cancer for the next 20 years until his children complete university education. By the age of 60, Jason would be able to start enjoying his retirement life.
* Based on 5 years (60 months) of monthly income, not adjusted for inflation
The information on this page is for reference only. It is not intended to constitute a recommendation, and it is not intended as a substitute for professional advice. You should not act on any information on this page without seeking specific professional advice.