As young adults become more aware of social issues, are you curious about their take on the government’s “Voluntary Health Insurance Scheme” (“VHIS”)? Surprisingly, AXA Hong Kong’s VHIS Perception Survey¹ revealed that 85% of the aged-30-or-under agreed that VHIS could help divert medical pressure away from the public healthcare system and even enhance community awareness of medical insurance in the long run. It seems that as long as the government effectively alleviates Hong Kong’s public healthcare crisis, youngsters will welcome the solution regardless of their political affiliation. In fact, there’s no reason not to because VHIS benefits them in so many ways both collectively and individually.
Group insurance inadequate to handle unforeseen conditions
A lot of young adults solely rely on the medical insurance provided by their employers without ever considering getting their own. Little do they know that group insurance may only cover 70% of the total medical expenses². Because of that, when unforeseen conditions strike, medical costs could become far beyond what they can afford. Thanks to VHIS, the younger generation can now obtain a comprehensive medical protection at an affordable cost. For instance, a fresh graduate can enjoy a HKD420,000 medical coverage per policy year as well as guaranteed renewal to age 100 simply by paying a small amount of their annual salary according to the data regarding the medians of entry pay of fresh graduates³, so that in case of an unexpected disease, the treatment won’t stretch them financially.
Buy VHIS to save time and money
A taxpayer is allowed a maximum annual deduction of HKD8,000 in respect of qualifying premiums paid for insured person*. With VHIS, they can save on taxes and provide medical care for their aging parents simultaneously. No wonder it is considered an essential for every young adult.
Moreover, according to the data from Hospital Authority, a patient has to wait up to 10 years before they receive public specialist services such as total joint replacement surgery⁴! In moments like this, VHIS could be your lifesaver as its HKD420,000 medical coverage per policy year allows you to receive the timely treatment you need at a private hospital.
As our new workforce strive hard for career achievements, please bear in mind that health is still our most precious treasure of life! Learn more about VHIS and plan ahead for a worry-free future!
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*For more information, please refer to www.ird.gov.hk or seek independent tax advice.
¹ AXA Hong Kong’s VHIS Perception Survey Press Release: https://www.axa.com.hk/en/vhis-perception-survey
² Office of the Commissioner of Insurance Annual Report 2016 (p.37): https://www.ia.org.hk/en/infocenter/files/AR2016.pdf
³ Medians of entry pay of fresh graduates (Chinese version only): https://www.moneyhero.com.hk/blog/zh/10%E5%A4%A7%E8%B5%B7%E8%96%AA%E9%BB%9E%E6%9C%80%E9%AB%98-fresh-grad-%E8%81%B7%E4%BD%8D
⁴ The Hospital Authority’s Waiting Time for Total Joint Replacement Surgery: http://www.ha.org.hk/visitor/ha_visitor_index.asp?Content_ID=221223&Lang=ENG&Dimension=100&Parent_ID=214172&Ver=HTML
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