Six things to know before buying a VHIS plan
There is a wide variety of medical insurance products in Hong Kong with many similarities and differences, yet some VHIS plan features are not found in traditional plans. Learn more and be a smart consumer.
Insurance companies set underwriting requirements based on an applicant’s age, smoking habits, health and medical history. Generally speaking, younger and healthier applicants pay lower premiums. If an application is made only after a health problem has appeared, premiums may increase, exclusions may be added to the plan or the application may be turned down altogether. Approval and plan renewal are also subject to age restrictions.
Parents should apply for VHIS plans for their kids as early as possible. Since children have lower resistance to disease, they are more likely to become ill and require hospitalisation. For parents, a VHIS plan would lighten any potential financial burden.
Some medical insurance plans include a waiting period, i.e., the period (usually 30 days after the application is approved) during which the insurance company will not reimburse the life insured’s medical expenses. Assuming you’re currently healthy, the earlier you apply, the lower your chances of becoming ill during the waiting period and and not being eligible for reimbursement. With HSBC VHIS plans, there is no waiting period, which means the life insured is protected immediately.
Some VHIS plans have itemised sub-limits. For your reference, the comparisons below illustrate the differences between a plan with itemised sub-limits and one offering full coverage1.
Assumption: A 30-year-old male has a cardiovascular blockage during the term of a medical plan and requires bypass surgery plus a 3-day hospital stay.
| Hospitalisation and Surgical Items | Actual medical expresses | Other VHIS plans# | HSBC VHIS Flexi Plan* |
|---|---|---|---|
| Annual protection limit: Not applicable | Annual protection limit: HKD5,000,000 | ||
| Hospital bed and meals (3 days) | HKD3,180 | HKD3,180 | Full coverage1 |
| Designated medical equipment and miscellaneous expenses | HKD52,100 | HKD24,000 | |
| Attending physican's ward round fee | HKD3,180 | HKD2,000 | |
| Surgeon's fee | HKD55,000 | HKD37,500 | |
| Operating theatre charge | HKD25,000 | HKD13,150 | |
| CT scan | HKD20,000 | HKD20,000 | |
| Pre- or post-hospitlisation / pre- or post-day case surgery, outpatient care | HKD1,000 | HKD1,000 | |
| Total cost / total benefit | HKD159,460 | HKD100,830 | HKD159,460 |
| Self-paid amount | HKD58,630 | HKD0 | |
*Example based on HSBC Life Flexi Plan – Bronze. Monthly premium around HKD 682.
#Example based on plan upgrades for the VHIS Flexi plans available on the market. Monthly premium around HKD 356.
From these comparisons, it is clear that a full coverage1 plan provides more comprehensive protection. In fact, the planholder will not have to pay extra even when faced with major medical expenses, which makes it much easier to stay within one’s budget.
What sets a VHIS plan apart from other medical insurance products is its tax deduction eligibility. Taxpayers can buy VHIS plans for themselves and their family members. In addition to being entitled to medical reimbursements, they can also apply for a tax deduction of HKD 8,000 per life insured, per year. And there’s no limit to how many plans they can purchase.
A VHIS plan covers unknown pre-existing conditions, i.e., medical conditions the plan buyer is not aware of at the time of applying or which have not shown obvious signs or symptoms.
Patients battling a serious illness may consider going overseas for treatment. Further, people who plan to emigrate or those who have children who may study aboard also need to consider the regions covered by their plans. With some VHIS products, even the lowest-tiered plans cover the Greater China Area. The typical top-tiered plan even offers global coverage2, which gives the life insured many more options when considering where to receive treatment.
Medical insurance is a risk-transfer tool. Through a medical plan, the insurance company undertakes to share the responsibility for the life insured’s medical expenses, thus giving the latter more medication and treatment options.
There is a wide variety of VHIS products on the market. As long as you know the differences, then take time to shop and compare; you’re sure to find a comprehensive protection plan that meets your needs and budget.
- Full coverage shall mean the actual amount of eligible expenses and other expenses charged and payable in accordance to the terms and benefits of HSBC VHIS Flexi Plan.
- Global coverage may subject to the product launched by different insurance companies. For details, please refer to the Terms and Conditions of the respective plan.
Special offers
Apply online for HSBC VHIS Flexi Plan with the promo code "MEDI30" to enjoy 30% off first-year premium discount.
And an extra 10% off when you apply with your family members.
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Offer ends 30 June 2024. T&Cs apply.
Disclaimer
The above examples are hypothetical and for illustrative purposes only.
The information contained in this article is for general reference only and is not intended to constitute a recommendation or advice to any person or to be the basis for any financial decision. No person should act on any information in the article without seeking professional advice. There are certain assumptions that are used in the above scenarios and/or illustrations. Details will need to be considered on a case-by-case basis, subject to the terms of the relevant policy.
The information contained in this article does not constitute an offer for the purchase or sale of any banking or insurance products or services. Products and services are subject to individual needs. Contact your financial planner to review your financial needs and risk acceptance level. Under any and all circumstances, HSBC Life and/or HSBC Group shall not be liable for any damages, losses or liabilities, including but not limited to direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your or any third party’s use of this article or your reliance on or use of or inability to use the information contained in this article. This article should not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose.
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HSBC Life is authorised and regulated by the Insurance Authority to carry on long-term insurance business in the Hong Kong SAR. HSBC Life is incorporated in Bermuda with limited liability, and is one of the HSBC Group’s insurance underwriting subsidiaries. Insurance products provided by HSBC Life are only intended for sale through HSBC in the Hong Kong SAR. Policyholders are subject to credit risk of HSBC Life. For monetary disputes arising between HSBC and you out of the selling process or processing of the related transaction, HSBC will enter into a Financial Dispute Resolution Scheme process with you; however, any dispute over the contractual terms of the product should be resolved between HSBC Life and you directly. For details and information about HSBC Life products, please visit the insurance-related pages at HSBC’s website or visit our branch.
All the information in the article is updated as of May 2022
Issued by HSBC Life (International) Limited (Incorporated in Bermuda with limited liability)
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