Medical Insurance for Sole Prop / Small Company

czmd · 10-03-2023, 11:24 PM

Originally Posted by Desmond Decker:

Hi,
I am a British freelance contractor based in Hong Kong. You will need to pay Hong Kong tax on consulting fees earned in Hong Kong. I incorporated a HK private Limited company and employ myself through my company. The decision to incorporate or to do business as a sole proprietor, like vmlinuz, depends on your circumstances, but my hand was forced because my clients want to do business with a company rather than with an individual.

Were you able to get any private medical insurance (either as a sole proprietor or with a private limited company)? Bupa has this "Starter" tier: https://www.bupa.com.hk/en/companies...s/empower-sme/ but it needs a minimum of 2 employees.

shri · 13-03-2023, 11:43 AM

Moved this out ... seemed to have been caught in the moderation queue.

Is it 2 employees or two individuals? Some of the plans I've seen include employees dependants as plan participants.

czmd · 13-03-2023, 02:34 PM

Originally Posted by shri:

Is it 2 employees or two individuals? Some of the plans I've seen include employees dependants as plan participants.

On their website, they say "2 employees", but it's strange, because AFAIK these company group plans generally charge premiums per participant. Why would they not take a sole prop with potentially 2-3 dependants, but e.g. take a company with 2 employees who don't have any dependants? Is the "2 employees" rule required by law or is it just an arbitrary insurance policy requirement?

*Andrew* · 13-03-2023, 02:44 PM

It is an insurance rule. They believe a company has more than one employee. i.e. if you are alone you have no company, there is no one else. Generally, employee medical policies have slightly lower benefits and premiums compared to individual / family policies.

They want to insure more than one person, as it spreads the risk, so offer company terms for more than one employee. Many insurers have a minimum of 3 employees, but it may be possible to cover 2 employees, so long as the company is destined to grow. If the company does not grow, they have the right to not offer renewal, also depending on the claim experience.