Corporate Updates, November 23, 2021
Zurich Life launches Swiss Care Critical Illness Insurance Plan
- First in market1 feature to answer customer needs and enhance claims experience - “Nomination of contingent policyholder - assistance to navigate the claims process smoothly if the policyholder suffers from specified disability”
- Wide range of critical illness coverage against 71 major critical illnesses and 11 early stage critical illnesses, alongside Intensive Care Unit (ICU) benefit and death benefit
- Affordable premium with three options of premium renewable term, providing flexibility to suit financial planning need
From left to right: Geoffrey Au, CEO of Life Insurance, Zurich Insurance (Hong Kong),
Erik Choi, Head of Propositions, Life Insurance, Zurich Insurance (Hong Kong)
Since the establishment of Zurich Life Insurance (Hong Kong) Limited ("Zurich Life") in June, its Investment-linked assurance scheme (“ILAS”) and term life insurance products have been well received. The ILAS product, which supports customers’ wealth succession wishes and legacy goals, was crowned a Top 3 Finalist in the “Most Innovative Product/Service Award - Life Insurance (Wealth)” category at The Hong Kong Insurance Awards 2021, the “Best Investment-linked Life Insurance Product” honor at the Insurance Excellence Awards 2021, and the Best-in-Class recognition in the “Investment-linked assurance scheme” product category at the Benchmark Wealth Management Awards 2021. The latest addition to Zurich Life’s product shelf is its first critical illness product – Swiss Care Critical Illness Insurance Plan, a wide-ranging protection and financial assistance solution with coverages against major critical illnesses such as cancer, heart disease and stroke, as well as early stage critical illnesses including carcinoma-in-situ.
Cancer and cardiovascular diseases (including heart disease and stroke) have long been the leading causes of death in Hong Kong, with cancer being the leading killer. According to the latest statistics from the Hong Kong Cancer Registry2, a record high of 35,082 new local cancer cases were identified in a year’s time, with a surge of 35% in the past ten years. The Economist3 also released a whitepaper on Asia-Pacific, revealing that Hong Kong was on the heels of Japan and Mainland China in terms of incidence of ischemic heart disease and stroke, with report of 365 and 314 cases respectively per 100,000 population, implying they are not to be underestimated.
Thanks to medical advances, many critical illnesses are no longer incurable. Comparing to a decade ago, the death rate of heart diseases has dropped by approximately 31%, alongside a 35% decline4 in cerebrovascular diseases which can lead to stroke. In spite of the surge in cancer cases, the overall mortality rate has decreased, which reflects the progress in treatments. While timely and appropriate treatments might turn things around, the high costs of cutting-edge medical technology and medications, coupled with expenditures during rehabilitation, will put patients under heavy financial pressure on the road to recovery. This is when a critical illness protection helps alleviate financial burdens, allowing patients to concentrate on their health.
First in market5“Nomination of contingent policyholder - assistance to navigate the claims process smoothly if the policyholder suffers from specified disability”
Imagine a policyholder, who is also the life insured, suffers from a critical illness and falls into a coma, how could he/she manage the policy and make claims while being unconscious? To safeguard our customers’ wellbeing across different scenarios, Zurich Life understands the importance of timely financial support, and offers policyholders the option to nominate a contingent policyholder. In case the policyholder suffers from a specified disability (specified disability means Terminal Illness/ Coma/ Loss of Independent Existence/ Apallic Syndrome/ Major Head Trauma/ Paralysis), the contingent policyholder will become the new policyholder of the policy and can exercise all rights under the policy, including making any claim and managing the policy, after submitting relevant proof of the specified disability and subject to our approval.
Wide range of critical illness coverages against 82 critical illnesses, alongside Intensive Care Unit (ICU) benefit and death benefit
The Swiss Care Critical Illness Insurance Plan covers up to 82 critical illnesses, including 71 major critical illnesses and 11 early stage critical illnesses. If the life insured is diagnosed with one of the covered major critical illnesses, such as cancer, heart disease and stroke, a maximum of 100% of the sum insured in a lump sum payment will be provided to the policyholder. Should the life insured be diagnosed with one of the covered early stage critical illnesses, 10%-50% of the sum insured in a lump sum advance payment6 will be offered. If the life insured has stayed in Intensive Care Unit (ICU) of a hospital for three consecutive days or more regardless of known or unknown diseases or injuries, 25% of the sum insured in a lump sum advance payment6 will be granted. In the unfortunate event of death of the life insured, the beneficiary will be given a maximum of 120% of the sum insured7 in a lump sum payment - protecting their loved ones during the last chapter in life.
Guaranteed renewal and waiver of premiums
The policyholders are offered three options of premium renewable term: yearly, 5 years or 10 years. The policy will enjoy guaranteed renewal until the age of 80 of the life insured without health underwriting at each policy renewal period. If the accumulated sum of benefit (paid and payable) reaches 100% of the sum insured, any future premiums payable under the policy shall be waived while the death benefit remains in effect.
Zurich Life received industry awards for its innovations
The pioneering ILAS was rolled out in pace with the establishment of Zurich Life in June of this year, supporting customers’ wealth succession wishes and legacy goals by allowing the change of policyholder and life insured. Zurich Life was crowned a Top 3 Finalist in the “Most Innovative Product/Service Award - Life Insurance (Wealth)” category at “The Hong Kong Insurance Awards 2021”, organized by The Hong Kong Federation of Insurers, the “Best Investment-linked Life Insurance Product” at the “iMoney Insurance Excellence Awards 2021”, and awarded the Best-in-Class recognition in the “Investment-linked assurance scheme” product category at the “Benchmark Wealth Management Awards 2021”.
Disclaimer and cautionary statement
The insurance plan is underwritten by Zurich Life Insurance (Hong Kong) Limited.
The information contained herein is for reference only and does not constitute any part of the insurance contract. For full terms and conditions and exclusions, please refer to the policy document which shall prevail in case of inconsistency. Zurich Life Insurance (Hong Kong) Limited reserves the right of final approval and decision on all matters.
1 The statement we have made about this feature being ‘first in market’ is based on comparing it with other publicly available critical illness plans issued by Hong Kong’s major life insurance companies for individual customers as at Oct 29, 2021
2 “Overview of Hong Kong Cancer Statistics of 2019” published by Hong Kong Cancer Registry in Oct 2021
3 “The Cost of Inaction: Secondary Prevention of Cardiovascular Disease in Asia-Pacific” researched and published by Economist Intelligence Unit in 2018-2020
4 Comparing the data for the year of 2010 and 2020 from the “Number of Deaths by Leading Causes of Death, 2001 – 2020”, Centre for Health Protection
5 The statement we have made about this feature being ‘first in market’ is based on comparing it with other publicly available critical illness plans issued by Hong Kong’s major life insurance companies for individual customers as at Oct 29, 2021
6 The advance payment means the amount equivalent to a percentage of the sum insured that we pay in advance to the policyholder. If any advance payment has been made under the plan, we will reduce the death benefit and major critical illness benefit by the advance payment paid
7 Minus any major critical illness benefit, advance payment of early stage critical illness benefit, ICU benefit paid and/or payable and indebtedness which may be owing under the policy (if any)