How to read the table
The table compares structures and rules, not insurers, products or illustrated returns. "Guaranteed" means contractual; "non-guaranteed" means dependent on the insurer's declared dividends or crediting rates or on fund performance. "Liquidity" describes what a surrender returns in the early years. "Holding period" is a structural description, not advice.
Eight product types, seven dimensions
| Dimension | Term life | Critical illness | Medical / VHIS | Accident | Participating whole life / savings | Annuity / QDAP | Universal life | ILAS |
|---|---|---|---|---|---|---|---|---|
| Problem solved | Death cover for a fixed term | Lump sum on diagnosis | Hospital and surgical costs | Accidental death, disability, medical | Long-term savings plus lifelong cover | Retirement income | Flexible-premium lifelong cover with an account | Investment account with basic cover |
| Guaranteed | Sum assured | Sum assured (savings type also guaranteed cash value) | Benefits per terms | Sum assured | Guaranteed cash value and death benefit | Guaranteed annuity amount | Minimum crediting rate, maximum charges | Usually none |
| Non-guaranteed | None | Dividends (savings type) | None (premiums adjustable) | None | Reversionary and terminal bonuses | Dividends | Crediting above the minimum | Fund performance |
| Early liquidity | None | Low | None | None | Well below premiums paid | Loss if surrendered in deferral | Account less surrender charge | Account less charges, high early fees |
| Main risk | Cover ends, renewal cost | Definitions, disclosure, waiting period | Premium inflation, exclusions | Exclusions | Early surrender loss, dividends below illustration, FX | Deferral surrender loss, inflation | Account hits zero, charges rise | Market volatility, fee layers |
| Hong Kong tax deduction | None | None | VHIS certified plans: HK$8,000 per insured person per year | None | None | QDAP: HK$60,000 per taxpayer with MPF TVC | None | None |
| Governing rules | Conduct code, GL30 | GL16 (savings type), GL30 | VHIS rules | General business rules | GL16, fulfillment ratio notes | GL16, GL19 | GL16 | GL15, GL26, SFC authorization |
What the rules add
Every long term policy carries the 21-calendar-day cooling-off period under GL29 and requires a financial needs analysis under GL30; Mainland ID card holders sign the IFS-MP. Investment-linked schemes add the IFS-ILAS; premium financing adds the IFS-PF and affordability and over-leveraging assessments; replacing an existing life policy requires the industry's Customer Protection Declaration. Tax deductions exist for only two product types and are useful only to people with Hong Kong taxable income.
Who bears the investment risk
Ranked from insurer to policyholder: participating policies and annuities share results through non-guaranteed dividends with a guaranteed floor; universal life credits an insurer-declared rate with a guaranteed minimum but charges can rise; ILAS passes fund performance straight through with no guarantee. Protection products carry no investment risk; their risk is whether the claim conditions are met. Liquidity follows the same order: savings products should be funded only with money that will not be needed before the guaranteed break-even year shown in the illustration.
Sources and dates
- GL16 Guideline on Underwriting Long Term Insurance Business (Other than Class C Business), 2026 revision — Insurance Authority (IA) · 2026-02-06
- GL29 Guideline on Cooling-off Period — Insurance Authority (IA) · 2019-09-23
- GL19 Guideline on Qualifying Deferred Annuity Policy — Insurance Authority (IA) · 2019-04-01
- FAQ on Tax Deduction for Qualifying Premiums Paid under the VHIS Policy — Inland Revenue Department (IRD) · 2026-11-04 (accessed)
Cite this page
You may quote this page freely; please keep the source and date. Suggested format:
Gangxian Guide Editorial (2026). “Hong Kong Insurance Product Types Compared.” gangxian.hk. https://gangxian.hk/en/compare/ (accessed YYYY-MM-DD).