“HSBC” is a banking and financial services company, which has headquarters in London. It is a multinational company, which operates in 85 countries and has more than 89 million customers. According to “Forbes”, “HSBC” is the second largest banking company in the world.
The company offers different insurance services to its clients: it is possible to insure cars, pets, home and even get travel insurance. For those interested in life insurance products, “HSBC” offers three main solutions: critical illness cover, life cover and income cover.
Critical illness cover offered by “HSBC” pays out an agreed amount of money in case the person is diagnosed with a critical illness or has undergone a covered surgical procedure within a term of life insurance contract. Moreover, 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 all the time the person is insured, the decreasing cover is usually linked to the amount of money the person would need to cover his outstanding obligations, such as a mortgage or a loan.
This means that with latter option, the amount of cover is decreasing throughout the term of the policy. The main advantage of this cover is that the person will need to pay smaller premiums for decreasing cover plan, however, if the person wants to assure that his dependents would be left with no financial distress, the level cover may seem to be a better choice.
Moreover, the policy has no cash in value and the minimum term of the contract for individual person is 5 years. It is important that only people between 18 and 60 years and are residents of United Kingdom are eligible to take out “HSBC” critical illness cover. Also it is important to provide the company with all the details about the medical condition as the company leaves itself a possibility not to satisfy the claim if the client lied or did not tell everything about his health problems.
“HSBC” offers decreasing and level life cover which both will pay out if the person dies or is diagnosed with a terminal illness and is expected to die within the next 12 months. Decreasing cover pays out a decreasing amount of the sum assured and is usually seen as the best option for those, who want to have insurance contract only to protect themselves from the inability to fulfill their financial obligations. However, for those who can pay higher premiums, level cover may be a better solution because the amount of cover does not decrease throughout the term of the policy.
Moreover, “HSBC” offers various benefits that are included in the policy at no additional cost. First of all, terminal illness and accidental death benefits are automatically included in the policy. Furthermore, interim cover is provided for the client until the policy commences if life insurance is taken out along with a mortgage provided by “HSBC”.
There are also some exclusions to life insurance policy provided by “HSBC”. Firstly, the suicide is not covered for the first 12 months of the policy. Moreover, any death or accidental death claim is not satisfied if it could have been caused by HIV or AIDS either directly or indirectly unless the person caught it after the policy started in such kind of situations: from blood transfusion, which was part of a medical treatment, physical assault or because of the incidents which occurred during performance of employment duties.
“HSBC” offers two options of income cover to its clients: income cover and income cover (5 years). The difference is that with the latter option the benefit is paid for the maximum term of 60 months for one claim while the first option can provide cover until the person reaches the age of 65.
The company will start to make monthly payments after 13 weeks of incapacity have passed or if the employee stops paying salary and income becomes lower than statutory sick pay (SSP). It should be remembered that if the income is not lower than SSP even if the person is not able to work and earn money then the monthly benefit is not paid to the client by “HSBC”.