HONG KONG, Feb. 20, 2024 /PRNewswire/ — In December 2023, Bowtie launched a new Term Critical Illness Insurance product called Bowtie Term CI Early Stage and Multiple Cover. Shortly after it is launched, it was rated top by the independent third-party insurance comparison platform, 10Life[1]. Mr. Mingo Tsang, the product owner of the product, personally explained the design concept and product advantages.
Reasons for market favouring critical illness insurance with saving components
"During research, I could see insurance companies/brokers tend to promote critical illness insurance with saving components. Excluding commission factors, they indeed offer a broader coverage, providing multiple coverage, and coverage for early-stage critical illnesses."
"On the other hand, term critical illness insurance, lacking a savings component, offers relatively simple coverage.", Mr. Mingo Tsang stated.
After careful comparisons of critical illness insurance plans on the market, he has decided to enhance the coverage of term critical illness insurance, hoping to provide consumers an additional choice.
3 major devilish details were found in the 40 policies studied
During the product development, Mingo studied over 40 critical illness insurance products on the market and found 3 devilish details that could potentially affect the policyholders’ benefit:
1. "Early-stage critical illness protection" is just an "advanced" payment of a certain percentage from the sum-insured
This means, if the insured person has made a claim for an "early-stage critical illness", say 20% of the sum-insured, then claim for a severe critical illness in the future, they would only get the rest of coverage (80% of the sum-insured).
The primary function of critical illness insurance is to compensate for the loss of income due to the inability to work caused by critical illnesses. Only compensating for the remaining coverage amount may lead to insufficient future protection.
2. Coverage is for specific "Endovascular procedures" only
Some critical illness insurance policies claim to cover "endovascular procedures," but turn out they only protect procedures performed on the carotid artery.
As critical illness coverage operates based on defined conditions, the narrower the definition, the less advantageous it is for the insured.
3. "Unlimited" critical illness claims do not cover "relapse" cases
Some products advertise "unlimited" multiple critical illness claims, but they do not protect occurrences such as cancer relapse or reoccurrence of heart disease or stroke, making the "unlimited coverage" meaningless.
Personal interviews with users led to the launch of affordable high-end critical illness products
Mingo personally interviewed over 30 Bowtie customers to understand their expectations for the product and the additional premium amount they were willing to bear to enhance coverage.
During the interviews, most people were willing to pay an additional premium of 10% to 15% to extend coverage to common early-stage critical illnesses such as carcinoma in situ (CIS) and endovascular procedures.
Based on user feedback, Bowtie’s product development team strived to balance coverage and premiums, resulting in the launch of the new Bowtie Early and Multiple Critical Illness Insurance in December 2023, which rated top in the industry after launched.
3 Key Product Features of Bowtie Term CI Early Stage and Multiple Cover
1. Comprehensive coverage for early-stage and severe critical illnesses
Early-stage critical illnesses refer to diseases that have not yet developed into severe conditions. If treated early, the risk of developing into a severe critical illness significantly decreases.
Bowtie Term CI Early Stage and Multiple Cover covers the four most common early-stage critical illnesses, including CIS, early-stage malignant tumours, and medical conditions requiring endovascular procedures.
Regarding severe critical illnesses, it covers 42 severe critical illnesses, including the 37 critical illnesses listed by the Life Insurance Association Singapore, which should be able to cover 98% of common critical illness cases[2].
2. Multiple claims for early-stage and severe critical illnesses, up to 5 times each
With advance medical technology, many patients diagnosed with early-stage or severe critical illnesses can recover.
However, this does not eliminate the risk of a relapse or the occurrence of other critical illnesses. For example, the relapse rate for liver cancer is as high as 61.5%[3].
Recognizing this, Bowtie Term CI Early Stage and Multiple Cover offers multiple claims[4][5] for relapse/re-diagnosis of the three major critical illnesses (cancer, heart disease, and stroke), the occurrence of early-stage critical illnesses such as CIS, endovascular procedures, and other specified severe critical illnesses, all within the scope of multiple claims in Bowtie’s new CI product45.
Policy-listed early-stage and severe critical illness can be claimed up to 5 times, with a maximum total pay-out of 600% of the sum-insured.
3. Additional pay-out for early-stage critical illnesses and full pay-out for severe critical illnesses, total 120% of the sum-insured
Unlike the other products, Bowtie Term CI Early Stage and Multiple Cover provides additional pay-out for early-stage critical illnesses.
This means that if the insured is first diagnosed with an early-stage critical illness and is subsequently diagnosed with a severe critical illness after a waiting period of two years, the insured will receive 20%4 of the sum-insured for the early-stage critical illnesses, and 100%5 for the severe critical illness. At last, compensated with 120% of the sum-insured.
Common Term CI products
Bowtie Term CI Early Stage and Multiple Cover
1st diagnosis: early-stage critical illness
20% of the sum-insured
20% of the sum-insured4
2nd diagnosis: Severe critical illness
80% of the sum-insured
100% of the sum-insured5
Even if the insured is unfortunately diagnosed with a severe critical illness within the two-year waiting period, Bowtie will still provide a pay-out of 80% of the coverage amount.
In addition, Bowtie has eliminated the requirement for survival period.
Positioning of Bowtie Term CI Early Stage and Multiple Cover
Regarding the positioning of the new product, Mingo describes it as "High-end protection at an affordable price for everyone."
The design of this product embodies Bowtie’s core vision of "Just Fit protection". "Just Fit" focuses on strengthening the necessary coverage without unnecessary frills or gimmicks, ensuring that users do not have to bear unnecessary expenses and can ultimately "have enough" protection.
About Bowtie
Bowtie Life Insurance Company Limited is an authorised life insurance company and Hong Kong’s first virtual insurer. Its vision is to bridge the health protection gap and transform the way people access healthcare in Asia.
By combining modern technology and medical expertise, Bowtie offers a commission-free and convenient online platform for customers to quote, apply, and claim for medical insurance plans anytime, anywhere.
Bowtie is backed by Sun Life Financial, Mitsui & Co, and supported by leading international investors. Insurance products include Voluntary Health Insurance Scheme (VHIS), Life Insurance, Critical Illness Insurance, etc.
Besides, Bowtie also stepped into everyday life, aiming to provide the public with free insurance information. Therefore, we have established an online Insurance blog to offer various knowledge resources such as a quick guide to VHIS Comparison, VHIS tax deduction, Life Insurance Comparison, Critical Illness Insurance Comparison and more. These resources are designed to help individuals choose the insurance that best suits their needs.
Stay up to date at https://www.bowtie.com.hk/en/.
[1] Source of information: 10Life Insurance Comparison Platform. "Bowtie Early and Multiple Critical Illness Insurance" received a 5-star rating in the category of term critical illness insurance in 2023 and rated first in the term critical illness category (as of December 21, 2023).
[2] According to a major illness survey conducted by a reinsurance company in the Asia region from 2008 to 2012, cancer, coronary artery bypass surgery, heart disease, other severe coronary artery diseases, stroke, benign brain tumours, and kidney failure accounted for approximately 97% of critical illness insurance claims for women in Hong Kong. The remaining data is collected by Bowtie through various sources and calculated mathematically, provided for general educational and reference purposes only.
[3] Hong Kong Baptist University School of Chinese Medicine. (2016). "Advantages of Traditional Chinese Medicine in the Treatment of Advanced Liver Cancer."
[4] Early Stage Critical iIllness Benefit provides a benefit equivalent to 20% of the Sum Insured, subject to a maximum of HK$300,000 per Insured Person for each claim. The maximum total benefit amount is equivalent to 100% of the Sum Insured or HK$1,500,000, whichever is lower. This Benefit is subject to an Early-Stage Critical Illness Benefit Waiting Period and a maximum number of times you can claim for each early stage critical illness. This benefit will be automatically terminated after any Major Critical Illness Benefit has been paid or become payable, whichever is earlier. Please refer to the Policy Terms and Conditions and Exclusions for details.
[5] For claims related to the Multiple Critical Illness Benefit, additional requirements must be fulfilled for cancer (newly diagnosed, recurrent, spread or continuation of cancer after the initial cancer claim), stroke, heart attack and other heart-related diseases (including coronary artery bypass surgery or other serious coronary artery diseases). Please refer to the Policy Terms and Conditions and Exclusions for details.
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