Last chance for tax deduction benefits: Voluntary Health Insurance "CEO Plan" premiums over 10,000, 60% rebate for insurance purchased before the end of the month

The Voluntary Health Insurance Scheme has been in place for nearly 7 years and has become a "tax-saving artifact" for many taxpayers. Each insured person under the scheme has a maximum limit of HKD 8,000, which can save up to HKD 1,360 in taxes at the highest tax rate of 17%. The Insurance Authority revealed earlier that 97% of policyholders also purchase the "Flexible Plan," which has turned into a competitive arena for high-end policies. These high-end plans, commonly referred to as "CEO Plans," often provide coverage amounts ranging from HKD 10 million to HKD 30 million per year. However, with high coverage comes higher premiums; for example, the premium for an individual policy for a 40-year-old can reach HKD 20,000. March is also the peak season for purchasing voluntary health insurance. In addition to applying for insurance before March 31 this year to claim tax deductions during the tax season starting in May, it is also the best time to take advantage of premium discounts offered by major insurance companies, such as one company offering up to 7 months of premium rebates and another providing a 60% premium rebate for the first year. The government launched the Voluntary Health Insurance Scheme in April 2019, and the products offered by various insurance companies have been officially certified, giving citizens more confidence in purchasing health insurance to use private medical services. The "Standard Plan" meets the government's minimum requirements, including basic coverage and specified compensation amounts, and the designs of the products are generally similar. The "Flexible Plan" allows insurance companies more flexibility in product design, providing additional coverage on top of the "Standard Plan," such as higher coverage limits and broader coverage areas to meet the needs of different individuals. 97% of People Purchase the "Flexible Plan" The Insurance Authority revealed earlier that only about 3% of people buy the "Standard Plan," while 97% purchase the "Flexible Plan." Therefore, the "Flexible Plan" has already become a battleground for major insurance companies, and the competition for these high-end "CEO Plans" is becoming increasingly fierce. The biggest selling point of these "CEO Plans" is "full compensation" with no sub-limit, generally covering the medical expenses of semi-private or even fully private hospital rooms, with some plans offering global coverage (excluding the United States in general). Related Article: The Insurance Authority Promotes Health Insurance Reform to Reduce Citizens' Premium Burden Purchase Designated Policies to Receive 7 Months of Premium from AIA For example, AIA's "Prestige Plan" offers a lifetime coverage limit and an annual coverage limit of up to HKD 60 million and HKD 12 million, respectively. It also includes extended cancer coverage - clinical trial drug compensation, up to HKD 500,000 per policy year. For a 40-year-old policyholder with coverage in Asia and zero deductible, the annual premium is HKD 22,500; if a deductible of HKD 16,000 is chosen, the premium drops to HKD 8,680. If insurance is purchased before the "deadline" of March 31, there is a maximum rebate of 7 months' premium. Specifically, customers can receive a basic rebate of 3 months' premium, and if the same policyholder purchases a designated insurance plan (such as a savings insurance) they can receive an additional 2 months' rebate; purchasing an additional deferred annuity also grants an extra 2 months' rebate Sun Life 6-Month Premium Rebate Offer Sun Life's "Hong Kong Excellent Medical Insurance" offers a full compensation of HKD 10 million annually, covering the main treatment costs in semi-private rooms, with a lifetime coverage amount of HKD 40 million. The plan also includes extended cancer coverage. For a 40-year-old individual, the annual premium with zero deductible is HKD 14,900; choosing a HKD 20,000 deductible reduces the premium to HKD 6,850. The plan is offering a 6-month premium rebate promotion until the end of March. Related article: Tax deduction deadline! Employees can save up to HKD 10,000 in taxes by taking action before the end of March. MPF Easy application should be done in advance. Prudential Up to 60% First-Year Rebate Prudential's similar plan is called "Premier Plan," providing coverage of up to HKD 12 million annually, with a lifetime coverage amount of HKD 56 million. For a 40-year-old individual, the annual premium with zero deductible for coverage in the Asia region is HKD 18,800; choosing a HKD 20,000 deductible reduces the premium to HKD 7,228. The company is currently offering up to 60% first-year annual premium rebate, consisting of a 50% basic premium rebate and an additional 10% rebate for purchasing the company's designated savings insurance. Manulife 35% Discount in the First Year, 5% in the Following Year Manulife's "Joyful Voluntary Medical Insurance Flexible Plan" has no itemized compensation limits, with coverage reaching HKD 30 million per policy year. Its selected plan can cover semi-private room expenses in Hong Kong, Australia, and New Zealand. For a 40-year-old individual, the annual premium with zero deductible is HKD 20,300; choosing a HKD 22,800 deductible reduces the premium to HKD 8,128. The plan currently offers a 35% premium discount in the first year and 5% in the second year. Related article: Voluntary medical insurance tax deduction strategy | Family breadwinners can fully utilize voluntary medical insurance tax deductions to save over HKD 8,000, including a comparison of premiums from 14 companies