Term life insurance - buy in HK or USA?

I am thinking it is time to buy some term life insurance for the next couple of years. I used to live in the USA (have residency if needed) and noticed that the premiums are much lower than what was quoted on the HSBC.com.hk website. I think the order of magnitude was 2-3x difference. What gives with that!?


For those of you who are in HK on a semi-permanent basis, what are the pros and cons to having a policy purchased overseas? Is it even possible? I think I am supposed to be a current resident in the USA in order to buy a policy there. But what is to stop me from going back to the States, getting the policy set up and then returning to HK?


Thank you.

It is not even possible to buy a US policy while being overseas (regardless of your US citizenship) since insurers are only able to assess risks in the domestic market. A broker that I spoke to basically said hardly any insurer would undertake a request for someone in Asia because of past records of SARS and bird flu.


Your observation is absolutely correct. Term life insurance in Hong Kong is not popular and is a lot more expensive than the US. For the local community the variable life kind of plans, i.e. savings/investing attached to the premium payment is the norm. If you do the math this is way too expensive than buying a cheap term life then invest the extra money somewhere else. But I guess as long as you live here you don't really have a choice.

I guess I should have signed a policy before I came to HKG then.


Anyone know if a policy initially underwritten in the States can be maintained if the policyholder moves overseas during the term of the policy? or is the policy immediately void if the residency changes?


Thank you.