Interview
Ask me anything: Debunking Insurance Myths x 6
February 2026
6 mins
Insurance raises many questions: Can you trust projected returns? Will your money be locked away? Why should you buy medical insurance early? In this episode of Life Wisdom Show, we tackle the most common misconceptions head-on.
Video Highlights
Myth 1: Those projected returns are too good to be true?
Skeptical about insurance returns? Fair enough. Here's the reality: participating insurance policies are managed by professional investment teams who use diversified portfolios, compound growth, and long-term strategies to pursue stable returns. These plans offer both guaranteed and non-guaranteed cash values. And for the non-guaranteed portion? HSBC Life participating insurance has hit an fulfillment ratio (i.e. the ratio of actual to expected returns) of 128%*.
Myth 2: Won't a long break-even period hurt my cash flow?
It‘s a common assumption: buy insurance, wait ages to break even, and your money’s locked in. But some plans can reach a guaranteed cash value quite early. Like HSBC Infinite Wealth Insurance Plan, its guaranteed cash value starts at 85% of total premium paid, then grows over time, giving you a clearer picture of when you reach breakeven point. Looking for more liquidity? The HSBC Multi-currency Insurance Plan II offers flexible withdrawal option, giving you access to your policy value when needed, with 10 currency options# to help you manage cash flow across different life stages.
Myth 3: Some retirement annuity plans have long waiting periods before annuity income begins , and policy value may eventually reduce to zero? How should I choose retirement protection?
The reality? Different retirement plans work differently, with varying risk-return profiles. For instance, the HSBC Bright Income Insurance Plan works in another way. It is not an annuity plan. Some non-guaranteed monthly dividends can start being distributed at early stage without eroding the guaranteed portion of the policy value.
Myth 4: Is it better to buy insurance early?
Choosing to take out an insurance policy is a personal choice. But for medical insurance, the age at which you apply affects both premium rates and underwriting conditions. Generally, the earlier younger you get a medical insurance plan, the lower your premiums, which also reduces the risk of limited coverage for your future. Early protection means future peace of mind.
Myth 5: If I buy health insurance late, will premiums definitely be higher?
Some medical insurance plans have deductible options, so you pay a portion out-of-pocket in exchange for lower premiums. Under the HSBC VHIS Flexi Plan, you'll be offered a one-time choice to remove or decrease your deductible at age 55^ or every 5 years after that without underwriting. More flexibility for both coverage and premiums as your needs evolve.
Myth 6: I already invest in stocks and property. Do I really need insurance?
Financial planning isn't just about chasing the highest returns; it's about diversifying risk. Stocks and property are higher-risk investments, while insurance serves as a relatively stable foundation that helps spread risk and creates a safety net for you and your family.
*The fulfillment ratio for annual dividends and special bonus apply to participating insurance plans issued in the Hong Kong Special Administrative Region (in Hong Kong Dollar and US Dollar policies).
# MOP is to be made available for the policies issued in Macau only, exact availability to be determined by HSBC Life.
^Please refer to the product brochure for detailed features and the policy provisions for the detailed terms and conditions.
Special offers
Apply for HSBC Bright Income Plan to enjoy up to 8% off first-year premium discount. Plus an additional 1.5% off for select customers.
Offer ends 31 March 2026. T&Cs apply.
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Disclaimer
The above-mentioned plans are underwritten by HSBC Life (International) Limited ("HSBC Life") which is authorised and regulated by the Insurance Authority ("IA") to carry on long-term insurance business in the Hong Kong SAR. They are not a bank deposit or bank savings plan. Please refer to the product brochure for detailed features and the policy provisions for the detailed terms and conditions.
HSBC Life is incorporated in Bermuda with limited liability, and is one of the HSBC Group's insurance underwriting subsidiaries. The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) is registered in accordance with the Insurance Ordinance (Cap. 41 of the Laws of Hong Kong) as an agency of HSBC Life for the distribution of life insurance products in the Hong Kong Special Administrative Region. These products are products of HSBC Life but not HSBC and they are intended only for sale in the Hong Kong SAR. If the policyholder discontinues and / or surrenders the insurance plan in the early policy years, the amount of the benefit he / she will get back may be considerably less than the amount of the premium he / she has paid. Your benefit is subject to the credit risk of HSBC Life. Your premiums paid will form part of HSBC Life's assets. You do not have any rights or ownership over any of those assets. Your recourse is against HSBC Life only.
In respect of an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between HSBC and you out of the selling process or processing of the related transaction, HSBC is required to enter into a Financial Dispute Resolution Scheme process with you; however, any dispute over the contractual terms of the above insurance product should be resolved between HSBC Life and you directly.
The information shared in this material is for general reference and for illustration only. It 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 this material without seeking independent professional advice. This material should not be reproduced or further distributed to any person or entities, whether in whole or in part, for any purpose. Under any and all circumstances, HSBC Life and 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 material or your reliance on or use of or inability to use the information contained in this material. All interviewees’ opinions are provided by the interviewees for general reference only. They are not intended to constitute any recommendation or advice to any persons or to be the basis for any financial decision. The opinions expressed are those of the interviewees and do not represent the views of HSBC Life, HSBC or HSBC Group. HSBC Life and HSBC makes no guarantees, representations or warranties and accepts no responsibility or liability as the accuracy or completeness of the information in this material. Information in this material is subject to change without notice.
HSBC and HSBC Life do not intend to give any tax, immigration or professional advice, and will not give any tax, immigration or professional advice. This material shall not constitute any tax, immigration or professional advice. Please seek independent advice on tax, immigration or professional advice from your own independent advisor when necessary. The information in this material 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.
Issued by HSBC Life (International) Limited (Incorporated in Bermuda with limited liability)
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