Blue Insight: High insurance expense for lower-income families Median expenditure on Critical Illness, Life and Personal Accident insurance could reach over two thousand dollars

(Hong Kong, 2 June 2022) Blue, the first digital life insurer in Hong Kong, had commissioned ESDlife to conduct an online survey to better understand Hongkongers’ insurance behaviours and habits. The survey was conducted in May 2022, covering 352 Hong Kong residents aged 25 to 54. For households with monthly income of less than HK$20,000, the median of monthly spending on insurance could reach approximately HK$2,100[2] if they own life, critical illness and personal accident insurance, which might create substantial financial burden.

“No spare money” is a key reason for not buying critical illness, life and personal accident insurance

For respondents who did not purchase critical illness, life and personal accident insurance, 50% said they had “no spare money”, whilst 22% thought these insurance products were too complicated to understand. They might be unable to get timely protection in the event of any unexpected accidents.

Over 80% of the survey respondents understood the importance of critical illness, life and personal accident protection. In addition, 71% of the respondents showed their interests in buying a 3-in-1 insurance plan that covers critical illness, life and personal accident protection all at once, mainly due to “No need to manage policies separately” (47%), followed by “Cheaper than purchasing three policies individually” (36%) and “The plan is more flexible” (32%).

Enjoy 3 major types of protection in one single policy

In response to the market demand, Blue launches “3-in-1 Protector” (“Plan”), covering 3 areas of protection: critical illness, personal accident and life[3] . With daily premium as low as HK$4.3[1], customers can enjoy basic insurance protection at an affordable cost with the following features:

• Critical Illness Benefit: covers the 3 major critical illnesses: cancer, heart attack and stroke. In the event that the life assured is diagnosed with these covered critical illnesses[4], 100% of the sum assured as a lump sum cash amount[5] will be received

• Death Benefit: 100% of the sum assured as a lump sum cash amount[5] will be given upon the death of the life assured during the policy benefit term

• Personal Accident Benefit: 200% of the sum assured as a lump sum cash amount[5] will be given upon the death, dismemberment, or total and permanent disability[6] of the life assured within 180 days of the accident that caused such condition

• Easily Application and Claims Processes: Customers can apply online by answering a few health questions without any medical examination. The policy will be in effect in as fast as the same day upon successful application[7]. To make a claim, customers just need to complete claim forms and submit required documents. They will receive a pre-assessment on the claims result in as fast as 2 working days.

Mr. Charles Hung, CEO and Executive Director of Blue, said, “We understand that customers tend to buy multiple insurance plans for getting enough protection, which they may need to bear higher insurance expenses and consume more time to manage several policies. Blue thereby launches ‘3-in-1 Protector’, allowing customers to fulfil the 3 basic protection needs for critical illness, life and personal accident at an affordable price, in an easy and convenient manner.”

Respective terms and conditions apply to the above product. To learn more about “3-in-1 Protector”, please visit: https://www.blue.com.hk/en/wecare-3-in-1-protector.

Remarks: [1] The premium shown is for a Hong Kong non-smoking female aged 18 who applies for the “3-in-1 Protector” with a HK$1 million sum assured, and the monthly premium is HK$130. The daily cost of HK$4.3 is achieved by spreading the monthly premium for the aforementioned conditions over 30 days. [2] The assumption is based on the survey findings on “the median expenditure on critical illness, life and personal accident insurance are HK$1,000, HK$700 and HK$400 respectively for households with monthly income less than HK$20,000”. [3] When the death benefit/critical illness benefit/ personal accident benefit is payable, no further benefit under this policy shall be payable and the policy will be terminated. [4] Critical Illness Benefit shall only cover the critical illnesses listed in the appendix of the policy provisions, please refer to the policy provisions for details. Please refer to the appendix of the policy provision for the definitions of the covered critical illnesses. [5] The payable amount of the Death Benefit and Critical Illness Benefit shall be equal to: 100% of the latest sum assured less any indebtedness. The payable amount of the Personal Accident Benefit shall be equal to: 200% of the latest sum assured less any indebtedness. [6] For the full terms and benefits of the personal accident benefit, full lists of exclusions, please refer to policy provisions. [7] No benefits will be payable if the signs and/or symptoms of any covered critical illnesses manifested within 90 calendar days from the policy issue date or the date of last reinstatement, whichever is later.