Insurance Case Study

Client Background – Mr. Chan & Ms. Chan

• Age: 40 & 35
• Occupation: Engineer and Teacher
• Number of children: 2

• Family income: HKD100,000. With HKD30,000 surplus after expenses

• Property: HKD10,000,000 flat, remaining mortgage HKD6,000,000, repayment period 25 years

• Insurance: Company’s medical scheme for whole family, basic ward coverage

• Investment: Bank Savings only

• Goal: Retirement at 55

Solutions

Mr. and Ms. Chan found out that their assets were not up to par for their target to retire at the age of 55, which was in 15 years, as a result they approached us for solutions.

With our referral service, a professional consultant met with the Chan’s and and studied their case. He recommended arranging basic family wealth coverage and wealth growth plan were of upmost priority.

First, being the major breadwinner, Mr. Chan should insure a critical illness insurance with coverage of at least a year of family income, which was HKD1,000,000. This amount could lessen the burden of Mr. Chan’s family even Mr. Chan was contacted with illness and lost his part of income. Also, the money was sufficient for medical services. Then, he should insure a term life insurance plan with a lump-sum death benefits up to HKD10,000,000, which could cover mortgage of their property upon unexpected accidents.

As for Mr. Chan’s retirement plan, our consultant first reviewed his risk assessment result, which was medium to high risk, then selected a savings insurance plan that could accumulate wealth for his retirement.