Key Features of HSBC Life Cover Product Offerings

HSBC Life Product offerings include for 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

Life Insurance
Primary purpose of product

Provides a lump sum for loved ones/creditors upon the death of the Person Insured or upon diagnosis of a terminal illness.

Designed mainly to cover mortgages/debt.

Plan basics

Level cover: the benefit amount stays fixed throughout the policy term.

Decreasing cover: the benefit is decreased to coincide with an outstanding loan or mortgage.

Cover limits

£249,999 if bought online

£1,000,000 if bought through the branch

Cash-in value None
Minimum age at entry


Maximum age at entry


Other eligibility requirements

Must be a resident of the UK (Chanel Islands and Isle of Man excluded)

Length of Cover
Minimum term

5 years

Maximum term

52 years

Maximum age at end of term

65 years old

For Fixed term policies, the policy ends on the Person Insured’s 70th birthday


Premiums can either be paid monthly or annually

Future changes in premiums?

Premiums are guaranteed

Guaranteed premiums Yes
Reviewable premium No
Additional benefits
Terminal illness Yes
Joint life cover No
Critical illness cover

Optional, can be included in life choices plan

Mortgage payment protection

Yes, for plans bought to cover an HSBC mortgage

Premium protection None
Renewal option None
Conversion option None
Separation option None

Plan Details

The policy will pay either of the following:

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:

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

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.


The cover will not pay the life claim if:

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

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:

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.

To secure your family's future, fill in the form on the right and get your term life insurance quote now.

Types of insurance:
Term life insurance 101:
Life insurers:
*Scottish Provident 2012 life cover claims paid report.