How can I estimate life cover needs in Hong Kong?

IA’s assessment defines a mortality protection gap by comparing surviving family members’ needs with available resources. Prepare a household worksheet showing ordinary living costs, dependent care, education and medical needs. Identify who relies on your contribution and which costs would continue after your death. Use the household’s actual circumstances rather than copying an average protection-gap figure. [C2, C4]

IA highlights mortgages and the period before children become financially independent. Record outstanding obligations and ask how they would be settled or serviced. If a debt is treated as repaid immediately, distinguish that assumption from continuing repayments in the spending plan. State the support period for each dependant and ask an adviser to explain how the assumptions affect the estimate. [C2, C3, C4]

List existing death benefits and financial resources for review, noting ownership and access. IA’s tool distinguishes protection needs from financial resources; a worksheet should also show which resources have already been allocated to a particular cost. Ask a licensed broker to examine the estimate and a lawyer where ownership or beneficiary access is uncertain. Do not treat every asset as immediately available cash. [C1, C2]

IA explains that its simplified assessment uses income-related assumptions and can deviate from households with different spending patterns. Review actual expenditure and ask how inflation, returns and timing assumptions change the result. Then compare the required duration with policy coverage and sustainable premiums. The estimate is a discussion input; insurer acceptance and individual advice require a separate review. [C1, C2, C3]

Is there a universal salary multiple here?

No. IA emphasises needs and resources that vary by family circumstances. [C2]

Can a population average set my sum assured?

No. Use your family’s obligations and resources. [C2, C3]

Should I count the mortgage and repayments without adjustment?

Ask how the debt is treated so the worksheet does not repeat the same cost. [C2]

Does a calculator remove the need to review assumptions?

No. IA explains limitations of its income-based approach. [C2]

Does a needs estimate guarantee insurer approval?

No. Obtain the actual application decision and policy terms. [C1]

Does policy value equal the death benefit?

Check the death benefit separately from cash or surrender value. [C3]

When should the estimate be revisited?

Review after changes in dependants, employment, debts or family plans. [C3, C4]

How do term and whole life differ? What happens during the buying process? Country guides Trust checks Historical fulfillment ratios Life-stage hub Ask a process question

We provide information and referrals to a licensed Hong Kong broker; regulated advice and arrangements belong with that broker. Mainland visitors must sign in Hong Kong. Do not send identity, tax or medical documents through the general enquiry form. [C1]

General information, not advice.