HSBC Life launches multiplier-based whole life policy to address Singapore’s protection gap

HSBC Life Singapore has launched HSBC Life – Life Treasure III (the ‘Plan’), a regular premium, participating whole life plan designed to help address Singapore’s protection gap by offering clients the option to multiply their coverage by up to six times, have financial safeguards in place for accidental death and secure protection against a wider range of critical illnesses.

Addressing the protection gap is a current and pressing priority for insurers and financial institutions in Singapore. According to the 2022 Protection Gap Study by the Life Insurance Association (LIA), Singapore’s economically active residents fell short by 21% when it came to covering their mortality needs. When it came to coverage for critical illness needs, the gap was even larger at 74%.^[1] Notably, these gaps remain despite growing affluence in Singapore, where annual disposable income per capita is expected to reach US$47,000 by 2030.^[2]

Harpreet Bindra, Chief Executive Officer of HSBC Life Singapore, said, “Despite being an affluent society, Singapore continues to face a significant mortality and critical illness protection gap. While many individuals are financially savvy regarding savings and investments, they often do not have adequate insurance protection in the event of unexpected death, disability, or critical illness. HSBC Life – Life Treasure III aims to help fill that gap and give our clients a greater peace of mind.”

Multiplied Coverage

The Plan incentivises Singapore’s increasingly affluent population to narrow the protection gap through multiplier benefits that allow them to strengthen their financial safety net during the years of their choosing. Clients can boost their coverage by a multiplying factor of 2.5, 3.5, 4.5 or 6 times and choose to have this boosted coverage until the policy anniversary year of their 65th, 70th or 80th birthday.

To illustrate, a 30-year-old who purchases the Plan with a basic sum assured of SGD50,000 and chooses to multiply his coverage by 6 times until he is 70, will receive a basic plan multiplier benefit of SGD300,000 until age 70.

The chosen multiplier can also boost mortality protection through the Plan’s embedded accidental death benefit, which pays an additional amount equivalent to either the basic sum assured or multiplier benefit in the event of death due to an accident (up to age 80).

Enhanced Critical Illness Protection

Aside from multiplier benefits, the Plan offers clients the option to further bridge the protection gap with a range of critical illness riders. One example is the Early Critical Illness Benefit III rider which covers 170 conditions across early, intermediate, and advanced stage critical illness conditions, including 14 special conditions and 14 juvenile conditions.

Clients also have the flexibility to lock in their health conditions early and expand their coverage later with the Guaranteed Insurability Option (GIO), which allows for the purchase of a new insurance plan during specific life events without providing evidence of health.

At the same time, HSBC Life’s non-participating Term Protector and Term Protector Prime plans will also offer enhanced critical illness rider options, encouraging more income earners to additionally protect themselves against critical illness. Both plans now include coverage for up to 85 years of age, expanding the range of options for both base plan and riders to the ages of 50, 55, 60, 65, 70, 75, 85, and 99.

Bridging Health and Wealth

The Plan also comes with a cash value component that may be used to supplement retirement savings through its payout option. On reaching their multiplier coverage age, clients can choose to access their policy’s cash value in the form of annual payouts over 10 years.

Other benefits include a family support benefit to tide over expenses in the event of the loss of a parent or spouse, while other customisable options include premium waiver riders.

Meeting Evolving Needs

HSBC Life Singapore will be leveraging a multi-channel distribution strategy and strategic partnerships to improve accessibility to its new and existing products, in line with HSBC Singapore’s plans to increase market presence and touchpoints in Singapore.

“Our strength as an insurer is fortified by the strength of the HSBC Group behind us. Products like HSBC Life – Life Treasure III are designed to have a natural synergy with the health and wealth needs of our customers, and we will also be leveraging our Group multi-channel strategy to help more clients protect themselves and their loved ones,” Mr. Bindra added.

The launch of the Plan follows the launch of the HSBC Life Diamond Prestige IUL indexed universal life plan earlier this year and underscores HSBC Life’s commitment to offering innovative and customer-centric product propositions that better serve the needs of its customers and play its part in narrowing the protection gap.

Media enquiries:

Urvashi Raizada urvashi.raizada@hsbc.com.sg