A Closer Look: HSBC Term Life Insurance

Posted on May 13, 2009 and updated June 25, 2010 in Life Insurance Canada News 2 min read

In just minutes, you and your family can enjoy peace of mind for the next 10 or 20 years. Simply create a personal quote, answer a few questions, then enjoy instant coverage, all online. It’s quick, it’s convenient, it’s HSBC.

-Source: HSBC Insurance

HSBC Logo

These HSBC term life policies are underwritten by Household Life Insurance Company and, in keeping with convenience for the insurance consumer on the run, they come with only seven health questions. However, this rapid-fire solution comes with a heavy price. The premiums are almost double the rate of the competition.

Just check out this side-by-side comparison with other plans below:

 

Term 10: $250,000, 40-year-old male smoker

HSBC Term 10: $31.50/month (preferred rates not available)

RBC Insurance Term 10: $22.93/month (standard rates)

Transamerica Term 10: $17.33/month (preferred rates)

 

Term 20: $250,000 40-year-old male smoker

HSBC Term 20: $45.72 /month (preferred rates)

RBC Insurance Term 20: $36.90/month (standard rates)

RBC Insurance Term 20: $26.01/month (preferred rates)

 

In the end, the HSBC term life policies come with several distinct disadvantages, as listed below:

  • Higher premiums

  • Maximum issue limit is $250,000

  • Policies are not convertible to a permanent plan without a medical, so if the insured’s health changes and they want to convert the coverage, they’ll probably be out of luck.

  • No available options, or riders

  • The policy is only available online, so don’t expect great service.

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LSM Insurance
LSM Insurance

Hi Christine,

Thanks for the note. I will send you an email shortly. Regards … Lorne

Christine
Christine

I am a 44 year old smoker want a term of 20 years for approximately 100,000 or more. Please email me a quote.