When it comes to finding the best insurance program in Hong Kong, there are a few key factors that you will need to take into consideration. These include the type of insurance coverage that you require, your budget, and your personal preferences.
How to choose the best insurance program in Hong Kong:
Here is a step-by-step guide on how you can find the best Mortgage Insurance program in Hong Kong:
Determine Your Coverage Needs
The first step is to determine what type of coverage you require. There are three main types of insurance programs available in Hong Kong – medical, life, and general. General insurance covers things like accidents, fires, and theft while life insurance protects you financially in case of death or illness. Medical insurance, as the name suggests, helps with hospitalization costs and other medical expenses incurred due to an injury or sickness. Depending on your needs, you can choose from a basic policy that covers only one type of event or opt for a comprehensive policy that provides protection against multiple risks.
Compare Insurance Quotes
Once you know what kind of coverage you need, it’s time to start comparing quotes from different insurers. When doing so, be sure to pay attention to the premium amount as well as the terms and conditions associated with each policy. It’s also important to check whether there are any exclusions or limitations that could affect your claim payout later on down the road. To get started with your comparison shopping, this will allow you to compare quotes from different insurers side by side so that you can easily see who offers the most affordable rates for your desired level of protection.”
Now that we know what to look for Insurance Programme in Hong Kong, let’s take a look at some of the best options out there.
Mortgage Insurance Programme in Hong Kong
The Mortgage Insurance Programme (MIP) is a government-backed insurance scheme that protects banks and lenders in Hong Kong against the risk of borrowers defaulting on their home loans. The programme was introduced in 2003 in response to the global financial crisis and has since been extended several times.
Under the MIP, banks and lenders can apply for mortgage insurance from the Hong Kong Mortgage Corporation Limited (HKMC), a statutory body set up by the government. The HKMC will then reimburse the lender for any losses incurred if a borrower defaults on their loan. This provides greater security for banks and lenders, which may otherwise be reluctant to offer mortgages, particularly to high-risk borrowers such as those with low incomes or poor credit histories.
In order to be eligible for mortgage insurance, borrowers must first meet certain criteria set by the HKMC. These include having a minimum income of HK$15,000 per month, being employed full-time, and being a first-time buyer or self-employed person with no more than two properties owned under his/her name. Borrowers must also take out an MPF account before applying for mortgage insurance.
The maximum loan amount that can be insured under the MIP is 80% of the property value or purchase price (whichever is lower). The premium payable depends on various factors such as loan amount, property type and location, repayment period chosen etc., but is typically around 0.35% of the total loan amount per year.
