(29 August 2023, Hong Kong) Close to 70% of parents in Hong Kong prefer to send their children overseas for primary and secondary school education, while approximately 60% of those who plan to study overseas cite the pursuit of dreams as their motivation for studying abroad, according to Prudential’s “Overseas Study Planning Survey” released today by Prudential General Insurance Hong Kong Limited.

Prudential conducted an online survey of 300 respondents in Hong Kong between July and August 2023, aged 18 or above and with overseas study plans for themselves or their children. The results show that half (51%) of the parents surveyed intend to send or have sent their children to study abroad during their secondary school years, while 16% of parents look to do so for primary school years.

Among those individuals planning to study overseas, the majority cited the pursuit of dreams (59%), career advancement (56%) and development of personal interests (54%) as reasons. More than 70% of respondents said they aim to do a bachelor’s degree (20%) or a master’s degree (51%), while 11% intend to take short courses of three months to one year in duration for language study or other specialty courses, such as culinary skills.

A third of parents to accompany their children, while three quarters of respondents will travel around when studying abroad

The three most popular overseas destinations for full-time study are the UK (40%), Canada (16%), and Australia (14%). For short courses, Japan (19%) is the most preferred location. One third of those who plan to study overseas said they will accompany their children for their overseas study. Close to three quarters of the respondents (73%) said they or their children will be travelling around during their time studying abroad. Almost all (96%) said they or their children will return to Hong Kong for vacations or family visits each year, with 70% planning for short stays ranging from two weeks to two months.

“Hong Kong’s population is highly mobile. With overseas study increasingly popular globally, any life stage is a good time to study abroad and broaden one’s horizons. We see a growing trend of multi-country knowledge exchange and exploration, compared to education attainment in just one country as was the case in the past,” said Kelly Mok, General Manager of Prudential General Insurance Hong Kong Limited. “This calls for comprehensive travel study protection. When students venture overseas to fulfil their dreams, an all-rounded protection plan is essential because it gives them and their families peace of mind that they are protected against accidents, medical emergencies and unforeseen circumstances during their time studying abroad. It means they can fully focus on getting the most out of their overseas experience.”

Kelly added, “The appetite for overseas study helps to explain first quarter growth of close to 25% year-on-year in Prudential’s overseas study insurance sales. We hope to build on this momentum this year and, more so, help our customers live life to the fullest while studying abroad.”

Overseas study costs about HK$800,000 a year; over 60% surveyed apprehensive about injuries from accidents

Aside from financial expenses, respondents said they are mostly concerned about personal safety and medical needs when studying abroad. Up to 63% of respondents were worried about injuries from accidents; 52% about the high medical expenses related to illness; 41% about terrorist attacks, riots, or shooting; and 39% about the absence of compassionate visits by family and relatives during hospitalisation.

These personal safety and health concerns explain why close to 90% of respondents agreed that it was “very important” or “important” (89%) to get overseas study protection for a smooth and secured education journey abroad. More than half (57%) of the respondents already had such plans in place, while 27% said they are considering taking out such protection.

The survey also revealed that a considerable amount of money will be spent on education expenses. Respondents estimated their annual overseas study expenses to be approximately HK$800,000, including tuition fees (averaging HK$273,000), living expenses (average HK$185,000), accommodation (average HK$178,000) and leisure expenses (average HK$143,000).

A majority (86%) of the parents surveyed said they arrange for their children to have a credit card with a monthly credit limit of up to HK$35,000 in average. However, their children typically still plan to gain work experience and earn living expenses through internships (61%) or non-manual part-time work (45%).

“At Prudential, we understand the importance of financial planning for families, especially when children are involved. Overseas study for children is just the beginning of that life-long planning. Parents would be wise to start planning early on health protection, financial well-being and legacy arrangements for their children in order to empower them to pursue their life and dreams with a peace of mind,” said Kelly. “With different life insurance and other solutions from Prudential, such as overseas study insurance and multi-currency saving plans, parents can be well positioned to help protect and support their children’s future.”

Purchase PRUChoice Travel Overseas Study Insurance online to enjoy 20% off first-year premium

PRUChoice Travel Overseas Study Insurance combines coverage for tuition fees, leisure trips, accidents and medical support all in one. Applicable to worldwide country or region for study (except Hong Kong), PRUChoice Travel Overseas Study Insurance offers students studying abroad the excess-free options of semi-annual and annual coverage. Optional medical support covers medical expenses incurred from accidents and follow-up check-ups during ancillary leisure trips, internships, field trips, non-manual part-time work, and short holiday visits to Hong Kong during the overseas study trip.

Purchase online via PRUeShop from now until 16 September 2023 to enjoy 20% off the first-year premium. For more information about the protection terms and conditions, along with the promotion details, please visit Prudential’s official website.

Appendix

PRUChoice Travel Overseas Study Insurance Top 10 Special Features

Details

1 Unique-in-market: Tailor-made for students aged 6-70 for overseas study

Offering the lowest and widest age eligibility, the plan is excess-free

2 Unique-in-market: Cover for medical expenses during short holiday visits to Hong Kong

Optional medical support covers the medical expenses necessarily incurred in Hong Kong as a result of:

  • Illness and Accidental bodily injury sustained in Hong Kong during temporary visit for a period not exceeding three months, including bone-setting and accidentally dental treatment; or
  • Follow-up medical treatment within three months after returning to Hong Kong
3 Rare-in-market: With options for Semi-Annual (6–month) Cover and Annual Cover

Basic Plan and Premier Plan available to cater both long-term and short-term overseas study protection needs

4 Provides flexibility of protection for medical support up to HK$1,200,000 on an optional benefit basis

With flexibility in choice of coverage based on the requirements of the country of overseas study, the plan covers expenses incurred as a result of bodily injury sustained from accident or illness contracted during the trip, including overseas medical expenses, overseas hospital cash, additional accommodation and transportation expenses, and COVID-19 Extension

5 Cover for ancillary leisure trips to other countries during the period of overseas study

Applicable to all regions in the world, the plan provides comprehensive travel protection for accident, baggage and personal effects, unauthorised use of lost credit card, travel document, trip delay, baggage delay, personal liability and some popular high-risk activities, such as bungee jumping, hot-air ballooning, parachuting, scuba diving (not more than 45 metre depth), and winter sports, during the overseas study trip.

6 Cover for kidnapping and terrorist attack

Covers for accidental death and disablement as a result of terrorist attack, and we will pay travel delay cash benefit if the schedule transportation is being delayed due to terrorist attack. Compassionate death cash benefit in the event of the accidental death of insured person, if arising from being kidnapped during the period of insurance.

7 Cover for study interruption due to accidents

Reimburse the loss of irrecoverable prepaid but unused tuition expenses in the event of study interruption due to the occurrence of the following events during the period of insurance:

  • Death or terminal illness of the insured person
  • Continuous hospitalisation of the insured person for more than 30 consecutive days
  • Consequence of repatriation of insured person after treatment
  • Death of the insured person’s close relative1

8 Compassionate visit and 24-hour emergency assistance services

  • Covers the payment of additional accommodation and transportation expenses incurred by up to two relatives or friends for compassionate visit due to a specified incident of the insured person
  • Covers the cost of a round-trip transportation ticket for the insured person’s short-term visit to Hong Kong due to a specified incident
  • In case of emergency during the period of insurance, the insured person can contact the Emergency Alarm Center to receive emergency assistance services for free

9 Graduation incentive

The plan provides HK$1,000 cash per incentive to celebrate the insured person's successful graduation overseas after a minimum of 3-year study2. If the insured person continues to study overseas for other courses after the claim of Graduation Incentive is reported and meet the above conditions, the Graduation Incentive will be counted afresh.

10 Up to 20% No Claim Discount upon subsequent renewal year
  • If there is no claim record in the preceding year, you will enjoy 10% No Claim Discount when renewing the policy for the subsequent year
  • If there is no claim record in 2 consecutive years, you will enjoy 20% No Claim Discount when renewing the policy for the subsequent year

Benefit is subject to terms and conditions. For product details, please refer to the product brochure as well as the terms and conditions set out in the specimen policy.

 

1 “Close Relative” means the insured person’s legally married spouse, parent, parent-in-law, grandparent, son or daughter, brother or sister, grandchild, and guardian.

2 Insured Person should insure and renew PRUChoice Travel Overseas Study Insurance with annual plan and Optional Medical Support cover for 3 consecutive full policy years prior to his/her graduation. If any claim being made reported shall count afresh from the next policy year.

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Disclaimer

PRUChoice Travel Overseas Study Insurance is underwritten by Prudential General Insurance Hong Kong Limited. This document does not contain the full terms and conditions of this plan and is for reference only. You should read carefully the risk disclosures and key exclusions (if any) contained in the product brochure. For further details and the terms and conditions of this plan, customers can ask Prudential for a sample of the policy document. This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provide any insurance product outside Hong Kong. Prudential does not offer or sell any insurance product in any jurisdictions outside Hong Kong where such offering or sale of the insurance product is illegal under the laws of such jurisdictions.

 

About Prudential Hong Kong Limited

Prudential has been serving the people of Hong Kong since 1964. Through Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, we provide a range of financial planning services and products including individual life insurance, investment-linked insurance, retirement solutions, health and medical protection, general insurance, and employee benefits.
www.prudential.com.hk