Need honest review on HSBC Life Term Protector (any cons?)

Hi Knowledge Builder,

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There are many plans that cover death and TPD, and depending on age, HSBC might not be the cheapest for your family member (i've seen situations where another insurer was cheaper, for example)

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Just note that as far as I am aware, the TPD claim on HSBC requires two doctors appointed by them to certify, as opposed to most other insurers which only require any registered medical practitioner.

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Furthermore, the discount would also apply to almost all the riders (CI, early CI, etc). The plan can cover till age 99 but the discount will be lower if you take that option.

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I think you need to take a step back first and understand if your family member first NEEDS the coverage (Death, TPD, CI, etc). If he/she is adequately covered with existing older plans and the premiums are not significantly cheaper, it might not be worth switching.

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Secondly, if your family member is not in the pink of health, then it also might not be worth switching especially if his/her older plans were bought when healthy.

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Having said that, if the premiums are low enough to warrant consideration, always remember that other insurers do offer term plans as well and you might want to check to see if they might be cheaper. As I mentioned at the start, I have clients who chose another insurer instead of HSBC because HSBC wasn't the cheapest, despite the steep discount. An IFA should be able to quote from most insurers to let you have a consolidated view of the options available.

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Good luck and do reply to this post if you have further questions.

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What is family member's goal of getting this protection? eg: death payout, TPD, CI covereage or Early CI coverage?

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The discount is a perpetual discount but there is no cash value in a term plan. However, if it covers your intended purpose of getting this solution then It will be equivalent as getting a peace of mind.

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If you feel that the cost is too high you can always look around for similiar products and make your own judgement, ultimately plans like this is mostly aimed for income protection in case something happens to you or it is for leaving a sum of money for your next generation.

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Hope this helps you and happy new year.