3-Year Term Life Insurance Premiums Reduced by 34% | 10Life

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Hong Kong ranks first globally in life insurance density and penetration rate. However, Hong Kong residents tend to favour products with savings or investment components, with pure insurance term life products accounting for only 0.9% of the market share in 2019 (see note 1). Nevertheless, in recent years, an increasing number of insurance companies have entered the Hong Kong market, and the rise of digital channels has triggered a price war in term life premiums, resulting in a 34% reduction over the past three years.

Term life premiums are generally more affordable, offering a higher compensation multiple (leverage) compared to whole life insurance. If the insured passes away during the coverage period, the beneficiary will receive a lump-sum death benefit as per the policy terms. Term life premiums are determined based on the insured’s age, payment period, and coverage amount; both the coverage age and renewal periods are subject to limitations.

Chart 1: Significant Reduction in Term Life Premiums in Recent Years

Insured	2019		2021		3-Year Reduction
Insured	Lowest Premium Term Life	10-Year Average Premium (HKD)	Lowest Premium Term Life	10-Year Average Premium (HKD)	3-Year Reduction
35 Years Old Non-Smoking Male	滙豐滙易保 (10年續保)	$1,031	富衛自主保定期保障計劃 (10年續保)	$680	34%
35 Years Old Non-Smoking Female	滙豐滙易保 (10年續保)	$811	富衛自主保定期保障計劃 (10年續保)	$592	27%
Note: 1. All term life products are based on the same assumptions, including a 35-year-old non-smoking male and female, with an initial death benefit of HKD 1 million and a coverage period of 10 years; 2. The estimated annual premium is the 10-year average annual premium for the relevant product; 3. The premium for FWD MyCover includes a 50% discount on the first-year premium and a 30% discount on premiums for subsequent renewal years; subject to the terms and conditions of the insurance company; 4. The above information is provided by 10Life for reference only and does not constitute sales advice. Information updated as of 7 September 2021; 5. Insurance companies reserve the right to change offers without prior notice. Readers should inquire with the insurance company for details of any offers before purchasing a policy.

For a 35-year-old non-smoking male with a coverage amount of HKD 1 million, in 2019, HSBC Life Easy Protect (renewable every 10 years) had a 10-year average premium of HKD 1,031, making it the most affordable in the city. However, by 2021, FWD MyCover (renewable every 10 years) introduced a recent discount offer, bringing the 10-year average premium down to HKD 680, surpassing HSBC to become the most affordable in the city.

Over the three-year period, the 10-year average premium decreased from HKD 1,031 to HKD 680, a reduction of 34%. This HKD 680 equates to a daily premium of HKD 1.7, which is cheaper than a single trip on any mode of transport.

For a 35-year-old non-smoking female, in 2019, HSBC Life Easy Protect (renewable every 10 years) had a 10-year average premium of HKD 811. However, by 2021, the most affordable option remained FWD MyCover, with a 10-year average premium of HKD 592, reflecting a 27% reduction over three years.

10Life’s Analysis of the Reasons for Price Reductions:

In recent years, the Insurance Authority has issued virtual insurance licences, and several companies, including Bowtie and ZA Insure, have entered the market, offering more affordable term life products. Due to increased market competition, more insurance companies have reduced prices to compete;
Previously, insurance companies relied on insurance advisers to secure policies for clients. However, with the prevalence of the internet, simpler term life products can now be sold directly online, significantly reducing intermediary costs and creating room for price reductions in term life insurance.

It is worth noting that most insurance companies have reduced term life premiums over the past three years (see Tables 2 and 3). Apart from companies focusing on internet channels, BOC Life also significantly lowered premiums by over 40% this year, with a 10-year average annual premium of HKD 980 for a 35-year-old male. HSBC Life also slightly reduced premiums by 3.4% to HKD 996, while AIA’s term life premiums unusually increased in 2021, rising by nearly 10% compared to 2020, to HKD 1,436.

Chart 2: Insurance Companies’ Term Life Premiums (35-Year-Old Non-Smoking Male, 10-Year Average Expected Annual Premium and Year-on-Year Change)

Insurance Company	2019	2020	2021
AIA	$1,300	$1,300	$1,436
AIA		0.0%	10.5%
Blue Cross	$1,070	$882	$882⁵
Blue Cross		-17.6%	0.0%
BOC Life	$1,828	$1,828	$980
BOC Life		0.0%	-46.4%
Bowtie		$852	$837
Bowtie			-1.8%
China Taiping	$1,030	$1,030	$1,030
China Taiping		0.0%	0.0%
FWD	$2,170	$2,170	$680 ³
FWD		0.0%	-68.7%
HSBC Life	$1,031	$1,031	$996 ⁶
HSBC Life		0.0%	-3.4%
Prudential	$1,450	$1,450	$1,450
Prudential		0.0%	0.0%
ZA Insure		$870	$853 ⁴
ZA Insure			-2.0%

Chart 3: Insurance Companies’ Term Life Premiums (35-Year-Old Non-Smoking Female, 10-Year Average Expected Annual Premium and Year-on-Year Change)

Insurance Company	2019	2020	2021
AIA	$1,110	$1,110	$1,235
AIA		0.0%	11.3%
Blue Cross	$840	$649	$649⁵
Blue Cross		-22.7%	0.0%
BOC Life	$1,421	$1,421	$794
BOC Life		0.0%	-44.1%
Bowtie		$612	$600
Bowtie			-2.0%
China Taiping	$760	$760	$730
China Taiping		0.0%	-3.9%
FWD	$1,860	$1,860	$592 ³
FWD		0.0%	-68.2%
HSBC Life	$811	$811	$784 ⁶
HSBC Life		0.0%	-3.3%
Prudential	$1,290	$1,290	$1,290
Prudential		0.0%	0.0%
ZA Insure		$640	$627 ⁴
ZA Insure			-2.0%

Note:

1. All term life products are based on the same assumptions, including a 35-year-old non-smoking male and female, with an initial death benefit of HKD 1 million and a coverage period of 10 years;

2. The estimated annual premium is the 10-year average annual premium for the relevant product;

3. This annual premium includes a 50% discount on the first-year premium for FWD MyCover Term Protection Plan and a 30% discount on premiums for subsequent renewal years, requiring the promo code “MYT50TL” to be entered on the FWD website, subject to the insurance company’s terms and conditions;

4. This annual premium includes a 20% discount on the first-year premium for ZA Insure, requiring the promo code “Life20” to be entered on the ZA website, subject to the insurance company’s terms and conditions;

5. This annual premium includes a 20% discount on the first-year premium for Blue Cross WeCare Term Life 2, requiring the promo code “FT220” to be entered on the Blue Cross website, subject to the insurance company’s terms and conditions;

6. This annual premium includes a four-month premium waiver for the first year of HSBC Life Easy Protect, requiring the promo code “4MTHFR” to be entered on the HSBC Life website, subject to the insurance company’s terms and conditions;

7. The above information is provided by 10Life for reference only and does not constitute sales advice. Information updated as of 7 September 2021;

8. Insurance companies reserve the right to change offers without prior notice. Readers should inquire with the insurance company for details of any offers before purchasing a policy.

Average Protection Gap for Working Individuals at HKD 1.9 Million

Last month, the Insurance Authority’s “Protection Gap: Mortality Risk Study” revealed (see note 1) that Hong Kong’s total mortality risk protection gap is estimated at HKD 6.9 trillion, with an average protection gap of approximately HKD 1.9 million per working individual. The study indicates that this gap can be addressed using existing, simple, and reasonably priced insurance products, with term life insurance playing a crucial role in this regard.

According to the Insurance Authority’s definition, term life insurance provides protection for ordinary families facing unexpected life events—particularly the premature death of a family member—that threaten their ability to maintain a decent standard of living. In fact, countries worldwide are grappling with ageing populations and rising medical costs. Addressing the mortality risk protection gap helps mitigate issues arising from the premature death of a family breadwinner and reduces the rapidly increasing public burden.

10Life Insurance Decoder also compares various term life insurance products in the market. For more details, visit:

Term Life (Annual Renewal)
Term Life (5-Year Renewal)
Term Life (10-Year Renewal)
Term Life (20-Year Renewal)

Note:

Results of the Insurance Authority’s first “Protection Gap: Mortality Risk Study”

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 9 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

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Over the past 3 years, term life insurance premiums have decreased by 34%.

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