HSBC Life Insurance Review 2025
HSBC is a banking and financial services company headquartered in London.
The policy has no cash value, and the minimum contract term for individuals is 5 years.
HSBC is a banking and financial services company headquartered in London.
The policy has no cash value, and the minimum contract term for individuals is 5 years.
Fill in the form below for a FREE, no obligation quote now.
HSBC is a banking and financial services company headquartered in London. As a multinational company, it operates in numerous countries and serves a large customer base. According to Forbes, HSBC is a major banking company globally.
The company offers a range of insurance services, including car, pet, home, and travel insurance. HSBC offers three main life cover solutions: critical illness cover, life cover, and income cover.
Contents
Critical illness cover offered by HSBC pays out a lump sum if the insured person is diagnosed with a critical illness or undergoes a covered surgical procedure during the term of the policy. It is possible to choose between two types of covers: decreasing cover and level (fixed) cover. The difference is that while level cover stays the same during the entire insurance period, the decreasing cover is usually linked to the amount needed to cover outstanding obligations, such as a mortgage or a loan.
With the latter option, the cover amount decreases over the policy term. Decreasing cover offers the advantage of lower premiums. However, level cover might be preferable for those wanting to ensure their dependents are financially secure, as it provides a consistent payout.
The policy has no cash value, and the minimum contract term for individuals is 5 years. Only individuals between 18 and 60 years old who are residents of the United Kingdom are eligible for HSBC critical illness cover. It is crucial to provide complete and accurate medical information, as HSBC may reject claims if clients have misrepresented or withheld health details.
HSBC offers decreasing and level life cover, both of which pay out upon the death of the insured or diagnosis of a terminal illness with a life expectancy of within 12 months. Decreasing cover pays out a reducing sum assured and is generally suitable for those seeking to cover financial obligations that decrease over time, such as mortgages. However, level cover, while typically having higher premiums, offers a consistent payout amount throughout the policy term, which may be a better option for those who can afford it.
Moreover, HSBC offers various benefits included in the policy at no additional cost. Terminal illness and accidental death benefits are automatically included. Interim cover is also provided until the policy starts, specifically when life insurance is taken out alongside an HSBC mortgage.
There are also some exclusions to life insurance policies provided by HSBC. Suicide is excluded within the first 12 months of the policy. Claims related to death or accidental death caused directly or indirectly by HIV or AIDS are generally not covered, unless the infection occurred after the policy began due to specific circumstances such as blood transfusions during medical treatment, physical assault, or workplace incidents.
We compare plans from the leading life insurance providers
HSBC offers two income cover options: income cover and income cover (limited to 5 years). The key difference is that the ‘income cover (limited to 5 years)’ option pays benefits for a maximum of 60 months per claim, whereas the standard ‘income cover’ can provide benefits until the insured person reaches age 65.
Monthly payments commence after a 13-week waiting period of incapacity, or if the insured’s income falls below the statutory sick pay (SSP) level due to salary cessation. It’s important to note that if income remains at or above the SSP level, even if the person is unable to work, monthly benefits are not payable by HSBC.
Defaqto ratings are an independent assessment of financial products, using a star rating system from 1 to 5, with 5 stars being the highest. These ratings help consumers understand the quality and comprehensiveness of insurance policies. As of March 7, 2025, HSBC Life Insurance holds varied Defaqto ratings across its key products.
HSBC’s Life Assurance (level term) achieved a 4-star rating, indicating a good level of cover. However, their Critical Illness and Life Assurance (decreasing) covers received 3 stars, suggesting a more basic offering compared to competitors. Income Protection is rated at 2 stars, indicating a less comprehensive policy.
In comparison, major competitors like Aviva, Legal & General, and Zurich often achieve 5-star ratings across similar product categories. For example:
For consumers, these ratings suggest that while HSBC Life Assurance (level term) is a solid option, those seeking comprehensive Critical Illness or Income Protection might find stronger offerings from competitors with higher Defaqto ratings. It’s important to consider these ratings alongside policy details and personal needs when choosing life insurance.
| Type | Plan name | Rating |
|---|---|---|
| Critical illness (standalone) | Critical Illness | 3 |
| Critical illness (standalone) | Critical Illness Plus | 3 |
| Critical illness (decreasing) | Life & Critical Illness | 3 |
| Critical illness (level term) | Life & Critical Illness | 3 |
| Critical illness (level term) | Life Cover With Optional Critical Illness | 3 |
| Income protection | Income Choice | 1 |
| Income protection | Income Choice (2 Year) | 1 |
| Life assurance (decreasing) | Life Protection | 3 |
| Life assurance (decreasing) | Life Cover | 3 |
| Life assurance (level term) | Starter Life | 1 |
| Life assurance (level term) | Life Protection | 3 |
| Life assurance (level term) | Life Cover With Optional Critical Illness | 3 |
