Hsbc Life Insurance: What You Need To Know

HSBC offers a range of life insurance products to its customers. HSBC Life Cover is provided by HSBC Life (UK) Limited and is available to UK residents who are over 17 and under 70 years of age. The policy includes a lump-sum payout in the event of death or a terminal illness diagnosis, as well as optional critical illness cover for 35 specified conditions. HSBC also provides life insurance in the US and Singapore, with various payment options available.

HSBC Life Cover

You can apply for HSBC Life Cover if you are a UK resident (excluding the Channel Islands and the Isle of Man), over 17 and under 70 years of age, and registered for online or mobile banking. The cover must end before your 80th birthday.

You also have the option to add Critical Illness Cover as an add-on to your HSBC Life Cover. This provides a lump sum payout on the diagnosis of one of 35 specified illnesses and surgical procedures, including cancer, heart attack, stroke, and dementia. This add-on is only available as level cover, and there are some exclusions to the cover.

HSBC also offers a range of tools and services to help you decide on the right level of cover and type of policy for your needs, including a cover calculator and protection advice from financial advisers.

Critical Illness Cover

The Critical Illness Cover add-on is only available with level cover, meaning the amount of cover and monthly payments remain the same for the duration of the policy. If you require critical illness cover that reduces over time, known as decreasing cover, you will need to speak to one of HSBC's protection advisers.

To be eligible for the Critical Illness Cover add-on, 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 require cover after your 75th birthday, you will need to speak to a protection adviser.

It is important to note that Critical Illness Cover does not provide cover for claims made within the first 90 days of the policy start date, and the policyholder must survive for at least 10 days from the date of diagnosis for a claim to be valid.

Level term vs decreasing term cover

HSBC offers life insurance to its customers, with a range of options to choose from. When considering life insurance, it is important to understand the different types of policies available and how they can meet your needs. Two common types of life insurance policies are level term and decreasing term cover.

Level term life insurance provides a fixed payout that stays the same throughout the policy term. This means that your loved ones will receive the same lump sum, regardless of when you pass away during the covered period. The monthly payments for level term insurance also remain consistent for the duration of the policy. This type of policy can be useful for covering interest-only mortgages, other debts, or protecting your loved ones' living expenses.

On the other hand, decreasing term life insurance offers a payout that reduces over time. This type of policy is often used to cover repayment mortgages, as the decreasing payout aligns with the reducing mortgage balance. Similar to level term insurance, the monthly premiums for decreasing term insurance remain the same throughout the policy term. Decreasing term insurance is typically more affordable than level term insurance.

When deciding between level term and decreasing term cover, it is essential to consider your specific needs and circumstances. Level term insurance provides the benefit of a consistent lump sum payout, ensuring your loved ones receive the agreed-upon amount at any point during the policy term. It is well-suited for interest-only mortgages and protecting loved ones' financial security. On the other hand, decreasing term insurance is designed to align with the decreasing balance of repayment mortgages or other long-term loans. This type of policy ensures that your cover amount stays broadly in line with your debt amount, so you don't pay for more cover than you need.

Both level term and decreasing term life insurance options have their advantages, and it is important to evaluate your financial situation, the nature of your debts, and the level of protection you want for your loved ones. HSBC offers financial advisers who can help you navigate these options and choose the most suitable policy for your needs.

Eligibility criteria

HSBC offers life insurance to its customers to protect them and their loved ones. Here is the eligibility criteria for HSBC Life Cover:

• You must be a UK resident (excluding the Channel Islands and the Isle of Man).
• You must be over 17 and under 70 years of age. The cover must end before your 80th birthday.
• You must be registered for online or mobile banking. For joint cover, only one person needs to be registered.
• You can apply for Critical Illness Cover if you are aged between 17 and 69 when the policy starts. The cover must end before your 75th birthday.
• You can access protection advice if you are an HSBC current or savings account customer (excluding Basic Bank Account holders) and are at least 18 years old.
• HSBC Life Cover is provided by HSBC Life (UK) Limited and has terms, conditions, limitations, and exclusions that apply.

It is important to note that HSBC Life Cover is not available to residents of the Channel Islands or the Isle of Man, and the age requirements must be met for the specific cover options. Additionally, only one person needs to be registered for online or mobile banking in the case of joint cover.

HSBC also provides a life insurance calculator to help you work out how much cover you may need. This can be found on their website, along with the option to get a quote or apply for life cover.

Payment options

HSBC Life offers a number of ways to pay your insurance premiums, with slight variations depending on your location.

If you are in Singapore, you can pay your premiums in the following ways:

• GIRO: You can set up GIRO to pay for your regular premium policies in Singapore dollars. To do so, download and complete the interbank GIRO form, and mail it to the Robinson Road Post Office. Note that you need to pay 2 months of premium in advance as it may take up to 6 weeks to process your instructions.
• HSBC Online Banking: Log on and go to 'Pay and transfer', then 'Pay a biller'. Select 'HSBC Life (Singapore)' as the biller name and enter your policy number as the bill reference number.
• PayNow: Make payments in Singapore dollars via PayNow. Enter 'PN (your 8-digit policy number)' under 'bill reference no.' or 'reference'. If making a third-party or joint-account payment, enter 'PN (your 8-digit policy number)HP (the policyholder's 8-digit mobile number as registered with us)>'. This option is only available for immediate family members.
• Cheque: Issue a cheque payable to 'HSBC Life (Singapore) Pte Ltd'. Indicate the payment type (premium payment or automatic premium loan) on the back of the cheque. If making a third-party or joint-account payment by cheque, also indicate your relationship to the policy owner and include a copy of their NRIC. This option is also only available for immediate family members. Mail the cheque to the Robinson Road Post Office.
• HSBC Life Payment Portal: Go to the HSBC Life Payment portal and fill in your policy details. You can pay with PayNow or credit card (Amex, Visa, or Mastercard).
• DBS or POSB Internet Banking: If you have signed up for the service, you can pay your premiums via DBS or POSB Internet Banking. Select 'HSBC Life GI' or 'HSBC Life' under 'billing organisation'.
• AXS Stations, e-Stations, or m-Stations: Make payments at any AXS Station, via the e-Station website, or the m-Station mobile app.

If you are in the USA, you have many flexible payment options when buying life insurance from HSBC. Monthly automatic secure transfers from a checking account are a popular method. Credit card payments and secure funds transfers directly from your checking or savings account are also options.

Frequently asked questions