Frequently Asked Questions

For Applicants

1. What steps should you take before buying life insurance?
2. What kinds of life insurance are there?
3. What are investment-linked assurance schemes ("ILAS")?
4. How much life insurance is enough?
5. What is the ideal premium?
6. If I apply for a life insurance plan when I am young, is the premium cheaper?
7. What are the benefits of life insurance?
8. Is a medical examination a must when applying for insurance products?
9. What is a suicide clause? Is the insurance company required to pay the death benefit if the insured commits suicide?
10. What is an incontestability clause?
11. Can my relatives in Mainland China apply for an insurance policy?
12. How can an insurance consultant assist me in financial planning?

For Policyholders

1. Where should I keep my insurance policy?
2. Does my policy become ineffective if I lose the policy contract?
3. Can I check my policy information online?
4. Is there any grace period for premium payment?
5. How can I change my autopay account?
6. What is cash value?
7. What are dividends?
8. What is the philosophy in deciding dividends?
9. How can I make changes to my insurance policy?
10. How do beneficiaries make a claim?
11. What are the channels for making an enquiry or giving feedback?
12. If I wish to make an enquiry to or seek assistance from a regulatory body, which organization should I contact?

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For Applicants

1. What steps should you take before buying life insurance?
   When you buy life insurance, you should be looking for a policy that gives you the most protection for the most reasonable amount of money.

   We recommend you follow these steps when considering a policy:

   • Decide how much protection you need
   • Determine how much you can afford to pay
   • Select from the various kinds of policies available and choose the one that best suits your needs
   • Select a trustworthy insurance company
     
2. What kinds of life insurance are there?
   Life insurance companies offer a variety of policies, so it is helpful to understand the basic concept of each kind before buying one. Basically, there are three traditional types of life insurance:

   (i) Term Insurance

   Term Insurance covers you for a specified period of time. At the end of the term, the policy expires. Death benefits will be paid only if you die within the period specified. Generally, term insurance provides the largest immediate protection at the lowest initial cost.

   Some term insurance policies are renewable. Each time you renew the policy for a new term, however, the premiums become higher. Before deciding on this kind of insurance, you should check how much the premiums will cost at a later stage in life and the length of time the policy can be continued for.

   Some term insurance policies are convertible. This means that before the end of a certain period of time, you may convert your term insurance policy into a whole life or endowment insurance policy regardless of your health status. Premiums for the new policy will, of course, be higher than what you would have been paying for term insurance.

   (ii) Whole Life Insurance

   Whole life insurance provides permanent protection for your entire life. The premiums are based on your age at the time you take out the policy. The policy also builds up cash value, which you may use in various ways.

   For whole life insurance, you can choose an initial face amount - the amount of protection you want - and pay fixed-level premiums that give you permanent coverage. Initially, whole life insurance premiums can be several times higher than term insurance premiums. However, unlike term insurance, whole life insurance builds up cash value that you can redeem.

   (iii) Endowment Insurance

   Endowment insurance is primarily a money accumulation plan that guarantees you a certain amount of cash at the end of a specified period. For instance, a 20-year endowment would pay you the face amount at the end of 20 years. If you pass away before then, the death benefit is paid to your beneficiary. For this kind of policy, the premiums are higher than other forms of life insurance but so are the cash values.

   All three of the policies just described are different but by no means mutually exclusive. Many plans combine features from all three. With the variety of products available today, you should be able to find a policy flexible enough to meet your needs.
    

3. What are investment-linked assurance schemes ("ILAS")?
   Investment-linked assurance schemes ("ILAS") are life insurance policies with benefits linked to the performance of your selected investment options. Like all insurance policies, your investment in an ILAS is subject to the credit risk of the issuing insurance company. In general, investments in ILAS are longer-term commitments as ILAS are designed to be held for a period of a number of years. Surrendering or cashing-in early could involve charges.As per guidelines of the Hong Kong Federation of Insurance (HKFI), post-sales call may be arranged to the applicants to confirm the understanding of the ILAS applications.
   
   
4. How much life insurance is enough?
   One way to determine how much life insurance you need is to calculate how much cash and income your dependants would need if you were to die. Take into account the expenses of a final illness, funeral expenses, personal loans and any debts you may have. Your insurance policy should provide cash for these costs as well as your family's living expenses, education, and other future expenses.

   Whatever policy you decide on, it should come as close as you can afford to reducing the difference between:

   (1) what your family would actually need, and
   (2) what your dependants would be left with.
    

5. What is the ideal premium?
   When it comes to life insurance, the least expensive policy is not necessarily the best one. Instead of looking for the lowest price, look for a policy that offers you all the options and benefits you want to meet the present and future needs of your family.
   
   
6. If I apply for a life insurance plan when I am young, is the premium cheaper?
   Yes. In general, older individuals carry a greater risk, their premium is calculated at a higher rate. In some cases, the insurance company may even reject an application from an individual if his or her health condition is not satisfactory.
   
   
7. What are the benefits of life insurance?
   Life insurance is one of the simplest and most efficient ways to guarantee your family is protected. Because death creates expenses, insurance proceeds not only provide your family with a way to pay for the initial expenses but also gives them the cash they need to continue on.

   What's more, with whole life insurance, you receive additional cash value in your policy and, depending on the type of insurance, you may even receive dividends.
    

8. Is a medical examination a must when applying for insurance products?
   No. The insurance company will look at the applicant's age, the total sum assured and the applicant's health status before deciding whether a medical examination is required. The applicant must declare his or her health condition and any past medical history in order for the insurance company to underwrite the application.
   
   
9. What is a suicide clause? Is the insurance company required to pay the death benefit if the insured commits suicide?
   A life insurance policy usually has a suicide clause, which governs the payment of policy benefits if the insured commits suicide. It states that if the insured commits suicide, while sane or insane, within two years of the policy issue date or any subsequent date of reinstatement, the coverage of the policy and any attached term riders will end. The only amount payable will be the premiums paid without interest, less any unpaid loan together with any accrued interest. If the insured commits suicide after the provision period, the insurance company is required to pay the death benefit.
   
   
10. What is an incontestability clause?
    Such a policy clause usually states that except for material misrepresentation, fraud or non-disclosure, the insurer will not contest the policy after it has been in force during the lifetime of the insured for two years from the date of issue or any dates of subsequent reinstatement. The incontestability provision will also apply to any riders attached to the policy unless stated otherwise.
    
    
11. Can my relatives in Mainland China apply for an insurance policy?
    Yes, they can. However, they must come to Hong Kong in person for the application and all relevant documents must be signed in Hong Kong.The applicant has to provide the entry proof at our Customer Service Center; a designated medical service provider or any designated representative assigned by the company for verification of the related documents.
    
    
12. How can an insurance consultant assist me in financial planning?
    An insurance consultant can be a valuable asset when it comes to financial planning in today's complex and fast-moving world.
    
    A good insurance consultant is a professional backed by all the resources of a reputable company. He or she is usually highly trained and experienced in diagnosing financial needs. What's more, his or her expertise can be very useful in helping you to set up a comprehensive program that not only meets your present needs but your future security as well.

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For Policyholders

1. Where should I keep my insurance policy?
   Keep your policy in a safe place where it can be easily accessed by the beneficiaries. Make a note of the policy number and where the policy can be found. By following these simple rules, a claim can be submitted promptly in event of the insured's death.
   
   
2. Does my policy become ineffective if I lose the policy contract?
   No. The policy will remain in force as long as a renewal premium is received within grace period. Moreover, policyowners can easily apply for the policy contract to be re-issued with administration charge.
   
   
3. Can I check my policy information online?
   Yes, you may access our official website and log in at the e-Service Portal in order to inquire about your policy information.
   
   
4. Is there any grace period for premium payment?
   Yes. For traditional life policy, we provide a 31-day grace period commencing from the premium due date.For investment-linked policy, we provide1 calendar month grace period commencing from the premium due date. For details, please refer to the specific policy provisions.
   
   
5. How can I change my autopay account?
   You can simply complete a direct debit authorization form. It generally takes six to eight weeks for your newly appointed bank to complete the authorization procedures. As such, you are required to settle two months' premium payment in advance.
   
   
6. What is cash value?
   Whole life insurance and endowment policies build cash values. The cash values generally increase every year if the policy is in force. However, they are not like deposits in a savings account as you cannot make deposits or withdrawals. But you can borrow against up to 90% of the cash value by simply signing a loan request form. The loan is subject to interest payments.

   Alternatively, with an "Automatic Premium Loan" clause in your policy and provided there is enough cash value to cover the amount of the premium, if you miss one or several premium payments, they will be charged as a loan against the policy to pay the due premium. The main objective is to keep the policy in force so as to protect the interests of you and your loved ones. Again, the loan is subject to interest payments.
    

7. What are dividends?
   There are 2 types of dividends - Annual dividends and Terminal dividends:
   
   Participating products have either an Annual Dividend, a Terminal Dividend or both. Dividend is your share of the divisible surplus that the Company may earn and is a non-guaranteed benefit. Whether dividends are payable and the dividend amounts are at the sole discretion of the Company.
   
   Annual Dividend is determined and allocated to the participating policy on the Policy anniversary. The dividends allocated to your policy may be used in a number of ways. Other than cash withdrawal, policyholder can leave the dividends with the Company to accumulate with interest, to buy additional paid-up insurance protection or to pay your premiums.
   
   Terminal Dividend or Partner Bonus
   Upon death of the insured or surrender of the policy, a discretionary Terminal Dividend or Partner Bonus may be paid in addition to the Life Insurance Proceeds or the Surrender Value, whichever is applicable. This Terminal Dividend and Partner Bonus cannot be applied towards the purchase of Reduced Paid-Up Insurance, Extended Term Insurance or to determine the Loan Value. For certain products, a discretionary Terminal Dividend may also be paid upon occurrence of certain pre-defined events in addition to death of the insured or surrender of the policy.
    
8. What is the philosophy in deciding dividends?
   The declared dividend represents your share of the Company's divisible surplus. The divisible surplus is determined from the actual experience of investment return, policyholders' benefits and expenses as well as the future expectation of these factors. The Company exercises its sole discretion as to the payment and amount of dividends to the policyholders.
   
   
9. How can I make changes to my insurance policy?
   For prompt changes to an address, a beneficiary or a policy detail, you may contact your insurance consultant or our Customer Service Center for assistance. Alternatively, you can also login ACE Life's e-Service Portal to check policy details and download appropriate service request forms via the internet.
   
   
10. How do beneficiaries make a claim?
    When the insured person dies, the beneficiaries should immediately notify ACE Life, quoting the numbers of all policies involved. An original death certificate is required for verification and the beneficiaries must complete a Claim Form(s) specified by us. Payments on claims are sent to the beneficiaries through insurance consultants after ACE Life receives the completed Claim Form, all of the necessary supporting documents and approves the claim. Our insurance consultants are fully versed in these procedures and will provide help and advice to the beneficiaries in their time of need.
    
    
11. What are the channels for making an enquiry or giving feedback?
    If you wish to send us an enquiry or give us some feedback, you may contact our Customer Service Center through the following channels:

    Address

    ACE Life Insurance Company Ltd.
    33/F, ACE Tower, Windsor House
    311 Gloucester Road, Causeway Bay, Hong Kong

    Office Hours:

    Monday - Friday
    9:00am - 6:00pm
    Saturday
    9:00am - 12:30pm (Sunday and public holidays closed)

    Hotline
    (852) 2894 9833
    
    Fax
    (852) 2577 0866
    Email Enquiries.HKLife@acegroupx.com
    Upon receipt of feedback, we will acknowledge receipt and designated person is responsible to handle the case. We will respond to you accordingly.
     

12. If I wish to make an enquiry to or seek assistance from a regulatory body, which organization should I contact?
    The following regulatory or self-regulatory bodies have been set up for the benefit of policyholders, regulating and disciplining the insurance intermediaries to ensure the highest level of professionalism within the insurance industry.
    • Office of the Commissioner of Insurance
    • The Insurance Claims Complaints Bureau
    • Insurance Agents Registration Board
    • The Hong Kong Confederation of Insurance Brokers
    • Professional Insurance Brokers Association Limited

    The above information is for reference only. For further details, please refer to the policy contract, contact your insurance consultant or call our Customer Service Hotline at (852) 2894 9833 for assistance.

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