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About HSBCHSBC was founded in 1836 when they first began trading between Europe and Asia. Nowadays it’s one of the largest banking and financial services organisations in the world, with over 89 million customers worldwide. HSBC boasts a network of 7,500 offices in over 85 countries. HSBC offers several types of insurance to their customers including life, travel, home, and car protection schemes. HSBC life insurance UK offers you the peace of mind that your loved ones are protected if the unexpected occurs. There are three different options for life insurance available, catered to suit individual needs.
What type of life insurance does HSBC offer?HSBC offers three main types of life insurance, HSBC Life Cover, HSBC Critical Illness Cover, and HSBC Income Cover. Here is an overview of all three policies, their benefits, and eligibility.
HSBC Life CoverHSBC Life Cover provides financial support to your family if the unexpected happens.
- Option to choose between Level or Decreasing Cover
- Lump sum paid upon death or diagnosis of terminal illness of up to £2,000,000
- Accidental death benefit, free cover up to a maximum of £250,000
- Eligible to UK residents between 17 and 70 years of age
- Cover must cease before your 80th birthday
HSBC Critical Illness CoverHSBC Critical Illness Cover provides financial support to you and your loved ones if you happen to fall ill unexpectedly.
- A lump sum of up to £1,000,000 is paid upon diagnosis, and free of UK income tax and capital gains taxes
- The lump sum is paid on diagnosis of one of 35 listed critical illnesses or surgical procedures
- Level or Decreasing Cover
- Children’s Cover included
- Eligible to UK residents between 17 and 65 years of age
- Cover must cease before your 70th birthday
HBSC Income CoverHSBC Income Cover pays a monthly tax-free benefit to substitute any loss of earnings if you’re unable to work after an accident or due to injury.
- Monthly benefit paid as a direct debit
- You can either opt for benefits until a chosen retirement age or while you’re unable to work for up to 2 years
- Support from a dedicated claims assessor
- Any premiums you hold for HSBC Life and Protection products are waived until you receive Income Cover benefits
- Eligible for UK residents between 17-60 years of age and in a minimum of 16 hours a week paid employment
- Cover must cease before your 68th birthday
Benefits of HSBC Life InsuranceIn general, HSBC has a lot to offer and there are some benefits to their life policies worth highlighting.
- Mortgage Protection One of the benefits of taking out HSBC life insurance is mortgage protection. Existing customers are permitted to have both Life insurance cover and a mortgage with HSBC, with both premiums and payouts relevant to outstanding debt.
- Accidental Death Policy HSBC will allow your family financial support on the accidental death policy while your life insurance application is still being processed. Your loved ones could receive up to £250,000 while your insurance claim is still waiting to be approved.
- Bereavement Support HSBC offers rehabilitation and guidance services to the loved ones who have suffered a loss. The expert claims team is always available for all help and advice.
- Guaranteed Insurability Option HSBC guarantees the policy will be renewed as long as premiums are paid
How does HSBC compare to other providers?HSBC has flexible options for lower premiums. For example, you have the option to choose between decreasing cover and level cover. Where level cover stays the same, decreasing cover is related to the amount needed to cover your mortgage or other loans. The main advantage of this being that you pay smaller premiums over time. HSBC scored 3 stars out of 5 with Defaqto, suggesting that comparably they do have decent policies, but perhaps one or two competitors can offer something extra. Other providers cover more illnesses with their Critical Illness Cover, for instance, as many as 100, whereas HSBC only covers 35. HSBC also doesn’t increase your premiums over time, they are fixed, and if you stop paying your premiums you won’t get money back. This is true of most insurance companies, however, and you can make changes to your HSBC policy at any given time if your circumstances are different.
How to applyOnly existing HSBC customers can apply Life Cover online. You also need to be registered for online banking with an HSBC bank account, in order to make monthly direct debit payments.
Claims ProcessExisting customers can make a claim by calling the helpline on 0345 745 6125. It’s advisable to have the policy number and policy holder’s details to hand. Other paperwork will also be required later such as proof of death. Qualified claims advisors will then take you through a personalised service. HSBC also offers rehabilitation programmes along with other help and advice.
Customer ReviewsUK reviews for HSBC have been mixed. In general, it depends on the service. Other companies have slightly more generous offers in particular with Critical Illness policies. On Trustpilot, the rating is lower than average at 2.8, but this is mainly due to negative reviews about banking customer service. Defaqto takes into account more factors and HSBC received a rating of 3 stars out of 5, which suggests a better than average service. Many customer reviews have been positive about certain aspects of the application process and customer service. The ease and convenience of the online and telephone applications service have been praised, along with the bereavement service for families. HSBC also aims to provide a personalised service, tailored to each customer’s own circumstances.
Bottom LineAccording to price comparisons, HSBC life policies are average and standard. They do, however, have a few unique benefits and offer flexibility. Their life cover offers financial peace of mind with a tax-free lump sum and guarantees accidental death cover during the policy application stages. Your loved ones will be guaranteed financial support in any situation.
Jody is the Managing Director and founder of My Key Finance Ltd. He has over 16 years experience as a protection adviser and is an authority within the UK business protection market. Jody has written articles for Business Matters Business Directory, and been featured in Forbes. As editor and Author of our blog Jody is hoping to educate and advise people with more in depth details and information on the various subject relating to the protection market.