HSBC life insurance review

Find out if global banking giant HSBC's life insurance policies are worth your time and money.

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HSBC will cover you for accidental death while your life insurance application is considered.
HSBC doesn’t have an “increasing cover” policy, which will increase your premiums but also your payout over time.

With life insurance you can rest assured that your loved ones will be taken care of financially if you are diagnosed with a terminal illness or die.

Maybe you want a policy which will help your partner pay off your mortgage? Or you want to pay for your children’s university fees? Thankfully there are different types of policies to suit your needs.

This guide analyses what HSBC has to offer so you can decide whether any are right for you.

Who is HSBC?

Founded in 1836 HSBC began to facilitate trade between Europe and Asia. These days it has more than 40 million customers around the globe and is one of the biggest banking and financial services organisations in the world.

It sells several different types of insurance in the UK, including home, travel and car protection. To sign up to life insurance with HSBC, you need to be an existing HSBC customer.

What types of life insurance does HSBC offer?

HSBC has a few different life insurance products for you to choose from. Here’s a breakdown of what you can get.

This is HSBC’s standard life insurance policy. It’s a type of “term-life insurance” so will only pay out if you die, or are diagnosed with a terminal illness, during the agreed term.

Think of it a bit like a phone contract. Once the end date is reached the provider won’t serve you anymore unless you buy a new deal.

Although rather than lasting 18 months, you’ll probably want cover for anywhere between a few years or several decades. Plus you will have to decide whether you want a level or decreasing cover policy.

  • Level cover. Both your monthly payments and the cover amount stays the same over time.
  • Decreasing cover. Your payments stay the same but the level of cover decreases over time. This can be useful if you just want to cover your loved ones against a large debt like a mortgage.
This type of policy will pay out a lump sum if you are diagnosed with a critical illness. It doesn’t have to be terminal, so this type of policy can be really useful if a serious health issue stops you from working for a while.

If you suffer from a condition like a heart attack or cancer, the insurance money could help with rehabilitation costs or even day-to-day expenses for your family.

This type of policy is similar to Critical Illness Cover. However, there is one key difference. Instead of a lump sum, it will pay a monthly tax-free benefit to cover any loss of earnings.

It will cover you for up to five years of being out of work, offering you a vital cushion if you need to rest or recover due to a serious injury or illness.

Optional add-ons include:

  • Critical Illness Cover for Children, which could be a major help if you need to take time off work to look after your child.
  • With the Life Cover option, you can get a joint policy so you and your partner will be protected. However it will only pay out once, so won’t cover both of your deaths.

Compare HSBC’s policies

1 - 3 of 3
Name Product Age range at application Cover range Term Pays out Joint cover Link
HSBC Life Cover
Critical Insurance 17-69; Over 50s is 50 or older
Level term and decreasing options available
If policyholder dies, the sum decided will be paid out
HSBC Critical Illness Cover
Up to £2m
Cover must end before 70th birthday
If you die or get a terminal illness and aren’t expected to live longer than 12 months
Yes – only pays out in full once
HSBC Income Cover
HSBC Income Cover
Between £50 a month and £4,167 a month
Cover must end at 68th birthday
If you are unable to work due to an eligible illness or injury

Benefits of HSBC life insurance

  • You can take out both a life insurance policy and a mortgage/loan through HSBC, with your premiums and payout linked to your outstanding debt.
  • HSBC will cover you for accidental death while your life insurance application is considered. Your loved ones would receive up to £250,000 if you die due to an accidental injury while waiting for the policy to be approved (subject to terms and conditions of course).

Drawbacks of HSBC life insurance

  • HSBC doesn’t have an “increasing cover” policy, which will increase your premiums but also your payout over time.
  • Other insurers will cover more illnesses and conditions under their Critical Illness protection policies.
  • 3-star Defaqto ratings for its life insurance policies are decent but not the best.
  • As with most life insurance policies, if you stop paying your premiums, you won’t get any money back and your cover is likely to stop.

HSBC life insurance exclusions

Each insurer and every policy will have its own set of exclusions. So remember to check your policy document before signing up. But here are some key reasons HSBC might refuse to pay out:

  • If you don’t answer questions truthfully or accurately when you apply you might invalidate your cover.
  • If you fail to tell HSBC about any changes to your health, lifestyle, occupation or hobbies.
  • If you commit suicide within the first 12 months of taking out a policy.

What’s the claims process for HSBC’s life insurance?

You can claim by phone (0345 745 6125). To make the process as smooth as possible it’s a good idea to have the policy number and the policy holder’s name to hand. As well as other details such as proof of death.

Frequently asked questions

Life insurance ratings

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.

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The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you.

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