Enhancing benefits limits and deductible options, increasing value for money with more comprehensive coverage
FWD Insurance (“FWD”) first introduced vPrime Medical Plan (“vPrime”, Certification Number: F00045), a flexi plan under the Voluntary Health Insurance Scheme (“VHIS”), in 2020. The plan has become increasingly popular in the local market with its innovative features, accounting for almost 30% of VHIS product sales under FWD’s life insurance business*. FWD announces today its upgraded vPrime with annual and lifetime benefit limits increased to HK$10 million and HK$60 million, respectively. Additionally, two more deductible options have been added to the existing four options (please refer to Table 1 below). Through the enhancements, FWD realises its commitment to providing ”better coverage, more comprehensive protection”, allowing customers to enjoy higher levels of health protection with more flexible premium options to suit their financial situation.
FWD recently conducted a survey1 to better understand consumer behaviour in buying health insurance. Results showed that the key concerns were around the comprehensiveness of coverage (39%), premium levels (27%), and benefit limits (14%). In addition, customers found it challenging and confusing to choose among a wide range of medical insurance plans in the market.
Kelvin Yu, Chief Product Officer of FWD Hong Kong & Macau, explained, “Since the launch of our first VHIS product, we’ve been aiming to provide sustainable, flexible, and comprehensive health protection for customers with different needs. In light of technological advancements, an aging population, and imbalanced supply and demand of public and private hospitals, we expect medical costs to keep rising. By raising the annual and lifetime benefit limits of vPrime, we want to better equip customers and their families for potential medical inflation. For customers who already have individual or employer’s group medical insurance, the new deductible options of vPrime can offer them even more flexible and affordable means to enhance their medical protection and bridge the protection gap when people change jobs or retire.”
Lifetime benefit limit of vPrime increases up to HK$60 million
FWD’s survey revealed around 70% of respondents who have at least one medical insurance policy find that their policies have itemised medical expenses with claimable sub-limits in place, while 20% of the respondents don’t know whether their policies have such limitation. The finding suggests that a considerable portion of the public aren’t familiar with their medical protection plans. This could be due to losing track of insurance policy details over time, resulting in mismatch between expected coverage and claimable amounts.
vPrime provides full coverage2 on medical expenses for hospitalisation and surgery without itemised sub-limits, with annual and lifetime benefit limits raised to HK$10 million and HK$60 million respectively.
Additional deductible options with market-first3 crises deductible waiver
In addition to the four existing annual deductible options, vPrime has improved flexibility with two new deductible options of HK$100,000 and HK$250,000 (please refer to Table 1 below). These options are particularly suitable for customers who have individual insurance plans and/or are covered by their employers’ (or their family members’ employers’) group medical insurance to enhance their existing protection with affordable associated premiums. The deductibles are waived for treatments on 16 designated crises, including the three major diseases in Hong Kong - cancer, heart attack, and stroke - enabling customers to focus on treatment and recovery.
Daily premium as low as HK$6.84 for HK$60 million lifetime benefit limit
Nearly 70% of the survey respondents are willing to spend more than HK$300 every month on medical insurance, with an average distribution ranging from HK$300 to more than HK$1,000. The range indicates that customers have different medical priorities. With the additional deductible options, vPrime customers can enjoy high levels of medical protection of up to HK$60 million lifetime benefit limit and a suite of additional rehabilitation services5 at a daily premium as low as HK$6.84.
* The sales performance is in terms of both annualised premium equivalent (APE) and number of policies sold.
1 This survey was conducted by FWD through a market research company, InSites Consulting. A total of 762 respondents aged 25-60 were interviewed through an online questionnaire in mid-January 2022 to investigate consumer behaviour in purchasing health insurance.
2 Full cover mean no itemised benefit sublimit and is subject to the annual benefit limit and the lifetime benefit limit. Full cover applies to selected benefit items only.
3 This is the first in the VHIS market as of 24 January 2022, compared with other certified VHIS products provided by major insurers in Hong Kong.
4 The standard premium refers to the premium before discount, and it’s the calculation of the "vPrime Medical Plan" premium for a 24-year-old (attained age) with HK100,000 deductible in annual premium mode. The standard premium is non-guaranteed. The above premium does not include the premium levy.
5 This benefit/service is optional and does not form part of the Terms and Benefits of vPrime Medical Plan. You have the right to opt-out from this benefit/service. Please inform FWD in writing if you do not want to receive this free additional benefit/service.
6 Congenital condition is only covered for a condition which has manifested or been diagnosed after the age of 8 (attained age) of the Insured Person.
7 FWD shall guarantee the Renewal at each policy anniversary up to the Age of 100 (attained age) of the Insured Person. As long as FWD maintains the registration as a VHIS provider, FWD guarantees that the Terms and Benefits will not be less favourable than the latest version of the Standard Plan Terms and Benefits published by the Government at the time of Renewal. FWD reserves the right to revise the Terms and Benefits, subject to the prior approval and re-certification by the Government, upon Renewal by giving a 30-day advance notice.
The vPrime Medical Plan (Certification Number: F00045) is underwritten by FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) (VHIS provider registration number 00036). The above information does not contain the full terms. For detailed terms and conditions, benefits of the policy, major exclusions and key product risks of vPrime Medical Plan, please refer to its product brochure and policy provisions downloadable at https://www.fwd.com.hk/en/protect/health-accident/vhis/vprime/. The premiums mentioned do not include levy which is collected by the Insurance Authority.
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Other vPrime Medical Plan product features:
- Covers unknown Pre-existing Conditions6 starting from the 31st day of the first policy year
- Comes with a suite of extra benefits and rehabilitation support5 to help insured customers regain health. It brings extra care to stroke survivors by covering a series of stroke-related treatments and recovery services, including consultations, medical treatments prescribed by specialists and Chinese medicine practitioners, as well as reimbursement for home facility enhancements prescribed by occupational therapists.
- If no claim is made for more than two consecutive policy years, a no claim premium discount of up to 15% will automatically be applied to the next renewal premium. For customers who also have policies with their specific relatives as the insured persons, they may be entitled to the market-first3 extra no claim premium discount of up to 10% (see Tables 2.1 and 2.2) with their vPrime policies. Total individual and extra no claim premium discount can be as much as 25%.