What exactly is the voluntary health insurance scheme (VHIS)? How is it different from other health insurance? MoneySmart has put together a summary for you to quickly understand the advantages, and points to note about VHIS.
Tax payments are an inevitable part of our lives. However, there are various tax-deductible insurance or wealth management products in the market, including Voluntary Health Insurance Scheme (VHIS), Tax Deductible Voluntary Contributions (TVC) and Qualifying Deferred Annuity Policy (QDAP). These products not only help taxpayers better manage their personal or family finances, but also enable taxpayers to enjoy tax deductions annually. Choosing the right products will also help taxpayers get a variety of special offers and save on management fees. So which insurers offer all three Tax-Deductions Schemes?
Key differences between VHIS and other Health Insurance options:
Unlike other health insurance schemes, insurance companies participating in the VHIS must provide guaranteed renewal up to the age of 100 years for policyholders without re-underwriting, irrespective of changes in the health condition after policy inception. Some even have a lifelong renewal guarantee under their Flexi Plans
Usually, there is a cap on the benefits your insurance company will pay over a lifetime. But VHIS forbids such lifetime limits so your benefits will not lapse before the age of 100 years.
The coverage of the certified plans is more extensive than that of the other policy. Coverage is extended to include unknown pre-existing conditions,treatment of congenital conditions, day case procedure, prescribed diagnostic imaging tests, prescribed non-surgical cancer treatments and psychiatric inpatient treatments in local hospitals.
If you hold an individual indemnity hospital insurance by an insurance company that has participated in the VHIS, you will be offered an opportunity to switch to Certified Plans. The exact timing of the migration may depend on the renewal cycle of your current insurance policy. You can approach your insurance company or agent/broker for details.
Holder of certified plans can claim up to HK$8,000 tax deduction in each assessment year. If you purchase VHIS policies for your relatives, you can claim tax reduction. Please note that there is no limit on the number of eligible policies that you can claim.
There are a lot of things to consider when it comes to purchasing insurance. You should consider premium, coverage and how and where to buy insurance. It is equally important to take the brand and reputation of the insurance company into consideration. The service provided by the agent also plays a major role.
The Hong Kong Government is currently processing applications from insurance companies for participating in the VHIS. They will publish the list of participating insurance companies on the official VHIS website and will update the page regularly
It could be risky. You will lose the coverage and be fully responsible for any medical expenses when transitioning to a new job or when you are unemployed.
Yes. There is a 21-day cooling off period, during which consumers can cancel the policy and get a full refund of the premium paid.
No. Unlike other health insurance schemes, insurance companies participating in the VHIS must provide guaranteed renewal up to the age of 100 years to policyholders without re-underwriting, irrespective of changes in the health condition after policy inception. Some even have a lifelong renewal guarantee under their Flexi Plans.
Yes. The purchase of the VHIS plan is voluntary and will not affect your rights to access public healthcare services.
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