# Single-Currency Policy, Multi-Currency Policy or Foreign-Currency Deposit: A Like-for-Like Comparison > The same long-term sum held three ways — a single-currency participating policy, a multi-currency policy and a foreign-currency bank deposit — compared on currency choice, switch cost, guaranteed and non-guaranteed parts, liquidity, protection and regulation, plus a USD / HKD / RMB policy comparison. - URL: https://multicurrency.hk/en/compare/ - Author: Policy Currency Notes Editorial (https://multicurrency.hk/about/) - Reviewed by: Policy Currency Notes Editorial Editorial Board - Published: 2026-11-04 - Updated: 2026-11-04 - Language: en ## Key takeaways - The decisive difference is the cost and timing of changing currency: a deposit converts any day at bank rates; a single-currency policy cannot convert; a multi-currency policy converts after a waiting period at the insurer's rate with a revaluation of guaranteed and non-guaranteed values. - Policies carry a guaranteed cash value table and a death benefit but heavy early-surrender losses; deposits carry no non-guaranteed element and no cover but high liquidity. - For an HKD earner, USD and HKD policies carry near-identical exchange risk (7.75–7.85); they differ in rates and illustration caps (6.5% vs 6.0%). RMB policies remove directional risk for Mainland spending but add convertibility and policy risk. ## Three containers for the same sum Assume a family holds a sum for 15 years or more that may be spent in a different currency later. The three containers below are compared on terms and rules only; no illustrated returns are used, because illustrations are capped at 6.0% (HKD) and 6.5% (non-HKD) and the non-guaranteed part can be zero. | Dimension | Single-currency participating policy | Multi-currency policy | Foreign-currency deposit | |---|---|---|---| | Currency choice | Fixed at inception | Chosen at inception, switchable after a waiting period | Any time | | Switch timing and pricing | Not available | Window around the anniversary; insurer-set rate; irrevocable | Any business day at bank rates | | Value after a switch | Not applicable | Surrender value converted, then guaranteed and non-guaranteed values re-projected on the new plan, possibly higher or lower | Principal converted; interest at the new currency's deposit rate | | Guaranteed part | Guaranteed cash value table | Same, replaced by a new table on a switch | Principal and agreed interest | | Non-guaranteed part | Bonuses, rate- and asset-dependent | Same; new bonus group after a switch | None | | Liquidity | Early surrender value far below premiums; 21-day cooling-off on new policies | Same; new policies created by a switch or split usually have no cooling-off | Instant for demand deposits; interest loss on early time-deposit withdrawal | | Protection and succession | Death benefit, beneficiaries, sometimes change of life insured | Death benefit, beneficiaries, split, change of life insured, contingent life insured | None; estate process | ## USD, HKD and RMB policies | Dimension | USD policy | HKD policy | RMB policy | |---|---|---|---| | Exchange regime | Floating reserve currency | Linked Exchange Rate System, 7.75–7.85 per USD since 18 May 2005 | Offshore renminbi, market-priced, at a spread to onshore | | Risk for an HKD earner | About 1.3% band | None | RMB/HKD exchange rate | | Risk for Mainland spending | RMB/USD exchange rate | RMB/HKD (approximately RMB/USD) | Low directional risk; convertibility and policy risk | | Rate basis | US rate cycle | Follows USD, short-term deviations (1-month HIBOR 2.68% on 3 Nov 2026) | Mainland and offshore RMB rates | | Illustration cap (from 1 Jul 2025) | 6.5% | 6.0% | 6.5% | | Convertibility limits | None | None | Insurer discloses no guarantee of conversion into other currencies | | Policy loan | Usually available | Usually available | Not offered on some products (China Life (Overseas) page: USD and HKD policies only) | ## What each container loses in three situations | Situation | Single-currency policy | Multi-currency policy | Deposit | |---|---|---|---| | Policy currency depreciates sharply against the spending currency | Full exchange loss, realised only at surrender or claim | Can switch in the window, but timing is constrained and values are revalued; if the fall has happened, a switch locks it in | Convert any time; the loss has happened but execution is flexible | | Policy currency rates fall for years | Bonuses may fall short; guaranteed table unchanged | Same; can switch to a higher-rate currency at the cost of new exchange risk and revaluation | Deposit interest falls; can move to a higher-yield currency with exchange risk | | Funds needed within 5 years | Surrender value far below premiums | Same; a switch does not improve liquidity | No loss on demand deposits; interest loss on time deposits | The switch option has value mainly in the first two situations, net of execution risk and revaluation; in the third it offers nothing over a single-currency policy. A reader expecting to need the money within five years should start the comparison from liquidity, not from currency. ## Sources and dates - Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies — Insurance Authority (IA) 2025-02-28 https://brdr.hkma.gov.hk/eng/doc-ldg/docId/getPdf/20250228-5-EN/20250228-5-EN.pdf - How Does the LERS Work? — Hong Kong Monetary Authority (HKMA) 2026-11 https://www.hkma.gov.hk/eng/key-functions/money/linked-exchange-rate-system/how-does-the-lers-work/ - ManuGlobal Saver product brochure — Manulife (International) Limited 2022-05 https://www.dbs.com.hk/iwov-resources/pdf/insurance/mgl-202205-en.pdf - Wise Legend Multi-Currency Plan (Excel) product page — China Life Insurance (Overseas) Company Limited 2026-11 https://chinalife.com.hk/products/insurance/wise-legend-multi-currency-plan --- This site is run by Policy Currency Notes Editorial, an independent insurance information site providing general education and comparison. It is not an insurer, licensed insurance intermediary or bank, sells no insurance product and accepts no application. Content has not been reviewed, approved or endorsed by the Insurance Authority (IA). For applications, quotations and policy servicing, consult a Hong Kong insurer or licensed insurance intermediary.