Mortality Protection Gap

Mortality Protection Gap

Protection Gap

What is Mortality Protection Gap?

  • Despite Hong Kong’s well-developed life insurance market, it is not immune from the global issue of the “protection gap”.

  • Despite Hong Kong’s well-developed life insurance market, it is not immune from the global issue of the “protection gap”.

  • The "Mortality Protection Gap" refers to the difference between a person’s protection needs (e.g. future household expenses, future medical costs, etc.) and available resources (e.g. retirement schemes, savings, investments, etc.).

  • The "Mortality Protection Gap" refers to the difference between a person’s protection needs (e.g. future household expenses, future medical costs, etc.) and available resources (e.g. retirement schemes, savings, investments, etc.).

  • The “Mortality Protection Gap” measures the impact of a breadwinner’s premature death on their dependent(s). The larger the gap, the more the dependent(s) will be unable to maintain the same standards of living using the available financial resources.

  • The “Mortality Protection Gap” measures the impact of a breadwinner’s premature death on their dependent(s). The larger the gap, the more the dependent(s) will be unable to maintain the same standards of living using the available financial resources.

  • Research by the Insurance Authority showed that the overall "Mortality Protection Gap" in Hong Kong was estimated to be around HKD6.9 trillion, equivalent to approximately HKD1.9 million for each economically active adult.

  • Research by the Insurance Authority showed that the overall "Mortality Protection Gap" in Hong Kong was estimated to be around HKD6.9 trillion, equivalent to approximately HKD1.9 million for each economically active adult.

  • Therefore, it is important for everyone to secure suitable life insurance products so they have sufficient coverage to address the Mortality Protection Gap.

  • Therefore, it is important for everyone to secure suitable life insurance products so they have sufficient coverage to address the Mortality Protection Gap.

When should individuals begin planning to address the “Mortality Protection Gap”?

  • There is a saying “People are not always good for a thousand days and flowers never bloom for a hundred days”. Life is unpredictable, and insurance can help to minimize the losses caused by risks.

  • There is a saying “People are not always good for a thousand days and flowers never bloom for a hundred days”. Life is unpredictable, and insurance can help to minimize the losses caused by risks.

  • It is vital that everyone understands the various risks and uses the most appropriate methods to manage those risks, such as by having life insurance products that suit one’s needs.

  • It is vital that everyone understands the various risks and uses the most appropriate methods to manage those risks, such as by having life insurance products that suit one’s needs.

  • Early planning is even more crucial for people who have started working and are preparing to start a family and be the breadwinner. In the event of an unfortunate incident, their dependents will not only endure the pain of losses, but the dependents will also have to worry about their living expenses.

  • Early planning is even more crucial for people who have started working and are preparing to start a family and be the breadwinner. In the event of an unfortunate incident, their dependents will not only endure the pain of losses, but the dependents will also have to worry about their living expenses.

  • When looking to plan for the future, insurance should be purchased as early as possible so you can obtain the protection sooner.

  • When looking to plan for the future, insurance should be purchased as early as possible so you can obtain the protection sooner.

© Copyrights 2024. The Hong Kong Federation of Insurers. All rights reserved

© Copyrights 2024. The Hong Kong Federation of Insurers. All rights reserved