Life Insurance: Hsbc's Offerings And Your Options

HSBC offers a wide range of insurance solutions, including life insurance, to help you manage risk, protect your family, and safeguard your belongings. Life insurance is a legal contract between an individual (the policyholder) and an insurance company. In exchange for regular premium payments, the insurance company provides a sum of money to the designated beneficiaries upon the insured person's death. HSBC's life insurance plans include term plans, savings plans, child plans, retirement plans, and more. The company has a successful claims settlement ratio, and customers can easily renew their life insurance policies online.

HSBC Life Insurance Guide

HSBC offers a range of life insurance options to suit your needs, including term life and permanent life insurance. Permanent life insurance includes whole life, variable life, universal life, and single premium life.

Term Life Insurance

Term life insurance provides a fixed amount of coverage for a specific period, usually 10, 15, 20, or 30 years. It generally has lower premiums than permanent life insurance and is ideal for periods of increased risk and exposure, such as when paying off a mortgage or replacing your income during child-rearing years. Term life insurance can help meet short-term financial needs and offers flexibility, allowing you to receive additional coverage if needed. However, it does not build up cash value, and the cost will rise significantly if you continue coverage after the chosen period.

Permanent Life Insurance

Permanent life insurance covers you for your entire life as long as you continue to pay your premiums. It can help you build wealth over time as your premiums are invested, and it offers the benefit of transferring your wealth efficiently to your heirs. Permanent life insurance is ideal for long-term financial goals and often includes a guaranteed minimum death benefit. While it tends to have higher premiums than term life insurance, it offers the advantage of accruing cash value that can be borrowed against.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance that provides coverage for your entire life and a death benefit for your heirs. It offers tax advantages as the policy's cash value grows over time, and death benefits are typically tax-free. Whole life insurance is often exempt from creditors, safeguarding your wealth from potential legal claims or financial liabilities.

Variable Universal Life Insurance

Variable universal life insurance is another type of permanent life insurance that provides permanent protection with the potential to build cash value through various asset allocation options.

Guaranteed Universal Life Insurance

Guaranteed universal life insurance offers the flexibility to choose the amount of protection that best suits your family's needs.

Critical Illness Cover

HSBC also offers Critical Illness Cover, which provides a lump sum upon the diagnosis of a specified illness, helping to support you and your family financially if you are unable to work due to an accident or injury.

Choosing the Right Plan

The type of life insurance plan that is best for you depends on your personal circumstances, financial goals, and life stage. HSBC's Wealth Relationship Managers can provide guidance and help you create a comprehensive insurance strategy that integrates with your overall financial plan. It is important to evaluate your finances, including your income, expenses, debts, and future goals, to ensure that the coverage you choose is sufficient to protect your assets. Additionally, consider the stability and credibility of the insurance company and choose one with a strong reputation and independent verification.

Term life insurance

HSBC offers term life insurance plans that provide a defined amount of coverage at a fixed-level premium for a specific period of time. Term life insurance is ideal for periods of increased risk and exposure, such as when paying off a mortgage or replacing your income during child-rearing years. It generally offers lower premiums compared to permanent life insurance.

Key benefits

• Safeguard your assets and shield your family from financial setbacks
• Meet short-term financial needs, such as paying off debt or replacing lost income
• Receive a fixed pay-out: your beneficiaries will receive a lump sum equal to the amount of coverage you purchased if the conditions of your policy are met

Riders

Riders are additional benefits that can be added to your term life insurance policy to enhance your coverage. Here are some riders offered by HSBC:

• Critical illness protection riders: provide payouts in the event of a critical illness
• Premium waiver riders: waive future premiums in the event of a critical illness diagnosis or involuntary loss of income
• Disability protection riders: provide payouts in the event of total and permanent disability
• Survival benefit rider: provides a payout if you outlive your policy term

Who is it for?

Permanent life insurance

Whole Life Insurance

Whole life insurance provides the security of coverage throughout your lifetime and a death benefit for your heirs. It stays in place for your entire life and provides a set level of security for your loved ones. You can borrow against the policy's cash value as it accumulates over time. Whole life insurance is often exempt from creditors, safeguarding a portion of your wealth from potential legal claims or financial liabilities.

Variable Universal Life Insurance

Variable universal life insurance provides permanent protection with the potential to build cash value through a variety of asset allocation options.

Guaranteed Universal Life Insurance

Guaranteed universal life insurance offers the flexibility to choose the amount of protection best suited to your family.

Single-Premium Life Insurance

Single-premium life insurance is a type of permanent life insurance where you pay for the policy with a single premium, which can be an efficient method of transferring your assets to your family or charitable organisations.

Whole life insurance

HSBC offers a variety of whole life insurance plans to meet different needs. Here are some of their key features:

• Life Treasure III: This plan provides multiplied coverage, a payout option, and optional riders to enhance critical illness protection.
• DIRECT - HSBC Life Protector II: This plan offers flexible premium options and gives you and your family a financial safety net.
• ValueLife: ValueLife is a non-participating whole life insurance plan that allows you to reduce your coverage at age 65 or 80. It offers guaranteed lifetime protection with a limited premium-paying term. You can pay regular premiums for the first 15 years and be insured against death, terminal illness, and total and permanent disability. If you decide to surrender your policy at the end of the 15th year, you will receive a guaranteed refund of 100% of the total premiums paid. If no claims are made until the age of 99, a guaranteed maturity benefit of 70% of the basic sum insured will be paid out as a lump sum.
• HSBC Life Sapphire Prestige Income II: This whole life plan provides regular income to complement your savings, allowing you to enjoy your retirement with peace of mind. It offers a flexible premium term, unemployment support benefits, and hassle-free application without a medical examination. You can start receiving monthly payouts as early as the end of the 13th month up to the age of 120 of the original life insured. There is also an option to accumulate your regular income for potential higher returns.

Critical Illness Cover

To be eligible for HSBC's Critical Illness Cover, you must be between the ages of 17 and 69 when the policy starts, and the cover must end before your 75th birthday.

If you are an HSBC current or savings account customer (excluding the Basic Bank Account) and are over the age of 18, you can access protection advice from one of HSBC's financial advisors. They will get to know your situation and recommend a competitive policy that is right for you from their hand-picked list of providers.

HSBC also offers a range of other life insurance products, including term life insurance, whole life insurance, variable universal life insurance, and guaranteed universal life insurance. These products can help protect your family and your wealth from financial setbacks, provide security for your loved ones, and build cash value over time.

Frequently asked questions