Advantages and disadvantages of insurance in Hong Kong

1. Advantages: the premium is cheap, about 70%-80% of the mainland premium; The protection and income of dividend products are high, and the dividend insurance yield of Hong Kong insurance is high; US dollar pricing, once China's currency depreciates, Hong Kong dollar policy insurance can be denominated in US dollars to avoid the risk of domestic currency depreciation;

2. Disadvantages: insurance is troublesome, and mainlanders must go to Hong Kong for insurance; The cash value cannot be guaranteed; Hong Kong insurance is not protected by mainland laws; Exchange rate risk is high.

Disadvantages of insurance in Hong Kong

1. Insurance trouble: mainlanders want to buy Hong Kong insurance, they must go to Hong Kong in person. Because signing a Hong Kong insurance contract in the Mainland has no legal effect;

2. Minimum guaranteed cash value: The cash value of insurance policies in Hong Kong is relatively low, sometimes it may be zero. Therefore, some buyers with insufficient funds are not suitable for buying insurance that can guarantee the cash value of the policy;

3. Hong Kong insurance is not protected by mainland laws: due to different social systems, Hong Kong insurance is not protected by mainland laws;

4. High exchange rate risk: Most insurance policies in Hong Kong are in US dollars or Hong Kong dollars. Therefore, although some risks can be avoided when China devalues its currency, the financial market fluctuates rapidly and it is impossible to predict the future financial trend. Therefore, the insured should be able to bear the risk of exchange rate changes.