Key Features of HSBC Life Cover Product Offerings

HSBC Life Product offerings include for life insurance:

• Level Term Life Insurance
• Decreasing Term Life Insurance

These are sold under the LifeChoices product line, along with Income Cover and Critical Illness Cover. This article will focus mainly on the Life Insurance product. Other life insurance products such as group life insurance are sold from products by other insurers.

Quick Facts

Plan Details

The policy will pay either of the following:

• Death benefit: paid upon the Person Insured’s death
• Terminal Illness Benefit: paid when the Person Insured is diagnosed with a terminal illness earlier than his death

The Person Insured can opt for other benefits (Critical Illness or Income Protection) which he can add to his LifeChoices plan. The reason for the claim should occur within the time the policy is in force.

Number of Policies

More than one policy can be allowed, as long as the total monthly premium does not exceed the maximum limit.

Cash-In Value

There are no cash-in values for the plans, except for the Whole of Life policy when the premiums are paid in one lump sum.

Additional Benefits/Options

Terminal Illness Benefit

This advances the Sum Insured if there is a diagnosis of a terminal illness during the policy term, but not within the last 18 months before the policy expires. The terminal illness should be one where:

• There is no known cure or the illness has progressed such that it can no longer be cured
• The illness will lead to death, within the next 12 months, according to the opinion of the Person Insured’s attending consultant

After the terminal illness benefit is paid, the policy ceases to be in force and the cover will stop.

Accidental Death Benefit

This provides free cover for up to £250,000 sum insured.  This is effective in the interim between the time the policy application is signed and submitted and the time the policy is issued. It will pay the death benefit for accidental death, excluding suicide or death caused by physical illness, mental illness or infirmity.

The cover is for a maximum of 60 days from the later of

• The date the Policy application is submitted
• The date the contracts are exchanged
• The date the Person Insured accepts, in writing, any alternative terms HSBC Life may give

Once this is paid, the cover stops and the Policy will no longer be in force.

Mortgage Protection

This is for decreasing mortgage cover, specifically taken out to protect an HSBC mortgage, this ensures that the cover provided is at least equal to the outstanding mortgage. This is if the premiums are paid on time. If the policy’s sum insured is smaller than the loan amount, to begin with, the mortgage protection will be based on the ratio of the sum insured to the loan amount.

Exclusions

The cover will not pay the life claim if:

• The Person Insured did not disclose relevant information, failure to complete the application form properly
• The Person Insured failed to notify HSBC Life about any changes in his family history, health or lifestyle that occur while the application for the insurance is being processed
• Suicide within the first year that the policy becomes effective
• Death is due to AIDS, whether directly or indirectly caused by infection with Human Immunodeficiency Virus (HIV) or any illnesses or conditions related to AIDS, if this is caught before the policy becomes effective.  Death through AIDS or HIV complications may be payable if this is caught in the UK after the policy has started. In addition, the infection should be from:
  • A physical assault
  • Blood transfusion in the course of one’s medical treatment
  • Performing one’s normal duties (i.e. as someone in the medical practice)

The cover will not pay for a terminal illness claim if:

• This pertains to AIDS or HIV in the same way that it will not pay for a life claim
• The diagnosis for terminal illness occurs within 18 months before the Policy expires

How to Make a Claim

When making a call to inquire about the claim, the claimant should have the Policy Number on hand.

When making a claim, HSBC will usually require the following:

• Completed claims form
• The policy document, schedules and any amendments or special terms
• Death certificate
• Birth certificate of the life insured
• Proof that the claimant is indeed the one to which the benefit is to be paid
• Police reports/doctor’s reports, where applicable
• Other documents that will help HSBC properly assess the claim

The benefits should be claimed by the beneficiary, the executor, or the appointed administrator of the Person Insured’s estate, or any appointed trustees.

Fees related to a terminal illness claim. HSBC will only pay medical examination fees that they request for the purpose of processing the claim. This is for tests made in the UK. For Persons Insured that are living outside of the UK, HSBC will only shoulder reasonable medical examination costs.

While the claim is being processed, it is important the premiums due are paid. Once the claim is approved, all premiums after the submission of the required evidence will be refunded in full, without interest.

The content of this article is provided for informational purposes only and is not created to be a financial advice. Contact HSBC (http://www.hsbc.co.uk) directly for details about their offerings.
Updated on: 15.09.2012

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