Who is HSBC?
HSBC Life (UK) Limited is an arm of HSBC Group, which was formed in 1865 as the Hongkong and Shanghai Banking Corporation.
It’s one of the world’s largest banking and financial services organisations, serving more than 40 million customers worldwide.
The life insurance division was launched in 1988 and is based in Canary Wharf, London, with a customer service centre in St Albans, Hertfordshire.
HSBC recorded 100% life insurance claims pay-out rate in 1999. These pay-outs were worth £36 million.
HSBC is regulated by the Financial Conduct Authority and authorised by the Prudential Regulation Authority.
Life insurance policies are covered by the Financial Services Conduct Authority, so if the insurer goes bust you’re guaranteed the terms of your policy will be totally protected.
What types of life insurance does HSBC offer?
HSBC offers flexible life insurance to suit a variety of requirements. All life insurance policies can be set up to pay up to £2 million upon death or a terminal diagnosis.
The policies it offers include:
- Level term life insurance
- Decreasing term life insurance
- Joint life insurance
Level term life insurance sees you paying a fixed monthly payment, and ensures that your loved ones will receive a pre-determined lump sum in the event of your death. It can be more expensive than decreasing term life insurance, as the amount your beneficiaries are entitled to should you pass away does not decrease over the course of your policy.
Decreasing term life insurance is also known as mortgage life insurance, as it's often taken out to cover the cost of a mortgage. You pay a monthly premium like with level term life insurance, but the pay-out your loved ones are entitled to decreases over time, usually in line with how much you owe on your mortgage. This usually makes decreasing term policies the cheaper option.
Joint life insurance covers two people, paying out if either of you die during the cover term. After this, the policy ends. Joint policies often work out cheaper than the cost of taking out two separate life insurance policies, but will only pay out for a single death. If you and your partner were to pass away at the same time, your beneficiaries would only receive a single payout.
What benefits does HSBC offer with its life insurance?
HSBC offer a selection of life insurance policies and types, so the exact levels of cover and benefits may vary. Before buying life insurance, we recommend you check the cover and benefits included.
HSBC life insurance comes with some standout benefits. These are:
- Accidental death benefit
- Interim death cover
- Mortgage or loan protection benefit
Accidental death benefit provides cover for the sum insured, which can be up to £250,000. A claim on this benefit can be made up to 90 days from your application form reaching HSBC to the policy starting or being declined.
Interim death cover is provided as standard if you take out life insurance in tandem with a HSBC or First Direct residential mortgage. It starts from exchange of contracts, acceptance of your application, or the date HSBC receives your written acceptance of the terms, whichever is latest. Cover lasts for up to 90 days.
Mortgage or loan protection benefit is relevant if you take out decreasing term life insurance. It ensures the lump sum paid upon your death will be at least equal to the amount left outstanding on your mortgage or loan. However, for it to kick in you must’ve made all of the repayments required by the loan or mortgage provider to that date.