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【Term Cancer Insurance Comparison 2021】 Features, coverage and rankings explained—no need to ask which provider is best!
The number of Hong Kong people diagnosed with cancer is increasing, and there is also a trend towards younger patients. According to government figures, approximately 25% of men or 20% of women have a chance of developing cancer before the age of 75 (see Note 1). As more people become concerned about cancer, and given the high cost of cancer treatment, many are considering purchasing cancer insurance so that, should they unfortunately develop cancer in the future, they can receive a lump-sum payout. Cancer insurance payouts are not restricted in use, so you can use them for medical expenses, mortgage payments, or your children’s school fees. There are now many term cancer insurance products on the market. Today, 10Life will analyse the features of these products with you.
Term cancer insurance pure protection payouts for specified cancers
Term cancer insurance has a relatively simple structure. It contains no savings component and provides pure protection, with every penny used to protect your health. The product pays out for specified cancers. When the insured is diagnosed with a covered cancer, they can receive a payout, whereas medical insurance only covers medical expenses. In fact, cancer treatment can easily cost over one million dollars. Even if you have medical insurance, it may still not be enough to settle the bill, leaving a protection gap. In addition, battling cancer is not a short-term war. Treatment and recovery both require time, so it is advisable to plan ahead and prepare funds for living expenses. Therefore, many people also purchase term cancer insurance to strengthen their safety net.
Admittedly, insurance products providing cancer protection on the market are not limited to term cancer insurance. In addition to covering cancer, term critical illness insurance also covers other serious illnesses. As term critical illness insurance offers broader coverage, its premiums are usually higher than those of term cancer insurance. Apart from this, the nature of the two products is similar.
Chart 1: Comparison between term critical illness insurance and term cancer insurance
| Product type | Term critical illness insurance | Term cancer insurance |
| Covered illnesses | Serious illnesses; some products only cover the three major critical illnesses (cancer, heart disease and stroke) (term critical illness insurance) | Cancer only (term cancer insurance) |
| Premiums | Relatively expensive | Relatively inexpensive |
| Critical illness payout | Primarily a single claim | |
| Policy term | Term: 1 year / 5 years / 10 years / 20 years; generally renewable up to age 65 to 100 | |
| Premium payment period | Annual premiums payable until the protection ends | |
| Savings component | None | |
| Cash value | None | |
| Purchase channels | Online application or insurance adviser, depending on the product | |
Incidentally, critical illness insurance is divided into two types: term and whole life. The differences between the two can be found in our earlier article, 〈How is critical illness insurance divided in 2021? Is whole life cover strong enough? Are term premiums affordable enough?〉.
The rationale behind the ratings for term cancer insurance
There is a wide range of term cancer insurance products. To make comparison easier for consumers, 10Life rates each product based on its cancer protection and policy terms.
Chart 2: Term cancer insurance rankings (annual renewal)
Assuming the policyholder is a 35-year-old non-smoking male, with a sum insured of HK$1,000,000
| Product | 10Life rating | First-year premium (HK$) | Average annual premium over 10 years (HK$) |
| 永明金融 | Sun Life SunHealth Cancer Shield Plan 1 | 9.1 | $2,176 | $3,302 |
| ZA Insure | ZA Insure ZA Cancer Protection | 9.1 | $1,3361 | $2,421 |
| HSBC | HSBC HSBC Cancer Care Insurance Plan Premier | 8.6 | $3,840 | $5,404 |
| 英國保誠 | Prudential PRUCancer 360 | 8.5 | $2,330 | $3,445 |
| 友邦 | AIA AIA Cancer Care Essence | 7.7 | $1,390 | $1,822 |
| Note: 1. This annual premium includes the 20% first-year premium discount for ZA Life Protection. Enter the promo code “LIFE20” on the ZA website. Subject to the terms and conditions of the insurer. 2. The insurance company reserves the right to change the offer without prior notice. Readers should enquire with the insurance company about the details of the offer (if applicable) before applying for insurance. 3. The above information is provided by 10Life, updated as at 11 October 2021, and is for reference only. It is not a sales recommendation. | |||
Products with terms that are unfavourable for claims will be penalised. Examples of unfavourable claims terms include:
- Ambiguous cancer exclusions, such as “non-life-threatening cancer”
- Exclusion of any of the ten most common cancers, including colorectal cancer, lung cancer, breast cancer, prostate cancer, liver cancer, stomach cancer, non-melanoma skin cancer, endometrial cancer, non-Hodgkin lymphoma and thyroid cancer
- Insufficient cover for carcinoma in situ, or exclusion of carcinoma in situ
- Payouts for carcinoma in situ deducted from the sum insured for advanced cancer
- No ongoing cancer treatment coverage
- A survival period requirement following a cancer diagnosis
Click here to learn more about the detailed rating methodology.
Chart 3: Comparison of payout ratios and terms for term cancer insurance (annual renewal)
| Product | Payout ratio | Cancer terms | ||||
| Non-melanoma skin cancer | Early-stage cancer (carcinoma in situ) | No ambiguous exclusion of: non-life-threatening cancer | Ongoing cancer treatment coverage | Full cover for major cancer diagnosed after carcinoma in situ | No survival period requirement (after cancer diagnosis) | |
| 永明金融 | Sun Life SunHealth Cancer Shield Plan 1 | 20% | 20% | ✓ | ✓ | ✓ | X |
| ZA Insure | ZA Insure ZA Cancer Protection | X | 20% | ✓ | X | X | ✓ |
| HSBC | HSBC HSBC Cancer Care Insurance Plan Premier | X | 30% | ✓ | X | X | X |
| 英國保誠 | Prudential PRUCancer 360 | X | 25% | ✓ | X | X | X |
| 友邦 | AIA AIA Cancer Care Essence | X | 20% | ✓ | X | X | ✓ |
| Note: The above information is provided by 10Life, updated as at 11 October 2021, and is for reference only. It is not a sales recommendation. | ||||||
This article has provided a brief introduction to term cancer insurance, including its coverage, features and rating methodology. However, everyone’s needs are different. Before applying for insurance, you should first understand your own circumstances and choose a suitable plan. If you would like to compare term cancer insurance plans, please use 10Life’s Insurance Decoder:
Sum insured of HK$1,000,000
- Term cancer insurance (annual renewal)
- Term cancer insurance (renewal every 5 years)
- Term cancer insurance (renewal every 10 years)
Sum insured of HK$500,000
- Term cancer insurance (annual renewal)
- Term cancer insurance (renewal every 5 years)
- Term cancer insurance (renewal every 10 years)
Note:
- Hong Kong Cancer Registry (2021). Overview of Hong Kong Cancer Statistics 2019. Hong Kong: Hospital Authority.
- The above information is provided by 10Life, updated as at 11 October 2021, and is for reference only. It is not a sales proposal.
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.
10Life Editorial Team
Our team of professional content researchers focussing on insurance
10Life Editorial Team
Our team of professional content researchers focussing on insurance
Disclaimer
10Life Product Comparison and 10Life Insurance Ratings are developed by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies. Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claim or loss arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information. If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10life.com
