Last Updated on by Tree of Wealth
This product has been withdrawn January 2021
HSBC Life Decreasing Term Assurance is a Mortgage Reducing Term Insurance without any cash value, purposed for mortgage coverage protection in the event of Death & Total Permanent Disability (TPD) and is catered to those who wants their insurance coverage to be a little more flexible as their commitments and liabilities get smaller each year.
Although mortgage protection is mentioned, other commitments like car loads or even children’s education fees can be taken into consideration for it. During this interim if you would like your coverage to reduce accordingly with the widest range of interest rate available, HSBC Life Decreasing Term Assurance plan may suit you.
The plan also comes with enough supplementary benefit riders to make it a comprehensive coverage.
The Importance of Mortgage Insurance
Protecting your biggest asset, Mortgage insurance protects your home not just for you but your family, should death, TPD or Terminal Illness occurs to you or your spouse whom are supporting the mortgage for your home. When facing this loss of not just the family member, another huge loss will be the income that is supporting the family.
HSBC Life continues to cover you even when you sell your property. It will pay out a lump sum amount in the event of Death, TPD and Terminal Illness for your next property.
Product Features and Benefits at a Glance
- Has a sum assured that will decrease based on the calculated interest rate every year, over the whole policy term
- Has Interest Rate Options ranging 0 to 15% with intervals of 1%
- Pays a reduced lump sum in the event of Death/TPD and choice to include Critical Illness coverage
- Joint-Life application is available
- TPD coverage until age 65 Next Birthday
- Flexible Premium Terms & Wide Range Of Policy Terms (Details Below)
Flexible Premium Terms & Wide Range Of Policy Terms
Choice of one time single premium has a policy term of 5 to 30 years.
If you are looking at regular premium between 10 to 30 years, you have the policy term of 10 to 30 years.
Policy Term
Single premium: 5 to 30 years Protection Policy Term
Regular premium: 10 to 30 years Protection Policy Term
Sum Assured for Single Life
Single premium with policy term from 5 to 9 years
Min: S$50,000
Max: S$500,000
Single premium or Regular premium with policy term from 10 to 30 years
Minimum Sum Assured: S$50,000
Maximum Sum Assured: S$5,000,000
Sum Assured for Joint Life
Single premium with policy term from 5 to 9 years
Minimum Sum Assured: S$100,000
Maximum Sum Assured: S$500,000
Single premium or Regular premium with policy term from 10 to 30 years
Minimum Sum Assured: S$100,000
Maximum Sum Assured: S$5,000,000
Supplementary Benefit Riders Available:
Personal Accident Benefit – In the event of accidents, this benefit will cover for loss of income, medical expenses as well as major and minor disabilities caused. This is on top of accidental death benefit.
Living Accelerator Benefit – Be covered for critical illness (CI) and receive the lump sum coverage amount in the event of CI diagnosed.
Waiver of Premium Benefit – Future premiums will be waived in the event of CI diagnosis or Disability.
What We Like About HSBC Life Decreasing Term Assurance
- Single Premium Option available covering for a policy term between 5 to 30 years.
- Interest rate in 1% intervals, ranging from 0% to 15%, providing much flexibility
HSBC Life Decreasing Term Assurance is suitable if you would like:
- Mortgage reducing term plan with a reputable insurer.
- Wide range of flexible interest rates options.
- Protection Coverage for Death, Total Permanent Disability and Critical Illness (Optional)
- Coverage plan for Mortgage Loan and decreasing loan concerns
- Protection for Joint-Lives with loved ones/spouse
- Single Premium & Regular Premium Term
- Wide range of policy protection term
It would however be less suitable if:
- You are looking for limited pay premium term and coverage for life.
- You would like cash value in a protection plan.
- You want to include Critical Illnesses of all stages coverage from Early to Advance Stage.
- A Wealth Growth Endowment plan
- Single premium, One-Time Premium Term
- Cash Payouts regularly
Conclusion For HSBC Life Decreasing Term Assurance
As with all term life insurance plans, the suitability of this plan for you will largely depend on your needs and expectations. There are many term insurance plans in the market with many strong Insurers. Which one suits you the most?
To find the most suitable coverage, simply fill in the form below and our friendly licensed FA advisor will get in touch with you. Based on your needs, a custom made solution will be adjusted only addressing your concerns.
No obligations, no hidden fees. All advice are of no charges.
