HSBC Life Singapore launches indexed universal life plan that rewards healthy lifestyles
The high net worth (HNW) and ultra high net worth (UHNW) segments have been growing rapidly with the number of HNW/UHNW individuals globally expected to triple between 2016 and 20261. In Singapore, the HNW/UHNW individual population is expected to more than double to about 600,000 during the same period1. In addition, more than USD18.3 trillion in wealth is forecasted to be transferred by 2030, including USD2.5 trillion in Asia 2.
According to the HSBC Quality of Life Report3, which examined HNW/mass affluent respondents’ sentiments towards legacy planning, preparing for unexpected events such as incapacity or death, and transferring wealth to the next generation or beneficiaries are key objectives of this client segment.
Mr. Harpreet Bindra, Chief Executive Officer of HSBC Life Singapore, said, “In Singapore, we see sustained demand for wealth, health and insurance solutions from affluent individuals and their families. HSBC Life Diamond Prestige IUL has been designed to be an efficient instrument for wealth transfer, while giving clients added peace of mind that their wealth is protected regardless of market conditions.”
Lifelong protection
HSBC Life Diamond Prestige IUL provides a safety net for loved ones with lifelong protection for death and terminal illness. This safety net is reinforced with a no-lapse guarantee benefit where the specified sum insured is guaranteed until the death of the life assured or for five years, whichever is earlier.
Growth potential with downside protection
HSBC Life Diamond Prestige IUL offers the flexibility to allocate funds between a General Account and an Index Account. The allocation is determined by the client to suit their risk appetite.
The Index Account allows clients to grow their wealth with potentially higher returns from the international equity market, with a crediting rate pegged to the performance of the S&P 500 Index, currently capped at 10%. The Index Account is protected from market downside with a floor rate of 0% (see illustrative example in Note to Editors).
Alongside that, the General Account offers secure stable returns with a minimum guaranteed crediting rate, so clients can enjoy the best of both market opportunities and stable returns.
The growth potential of the policy value is further boosted by a loyalty bonus of 0.35% added to the crediting rate declared for the Index Account and General Account from policy year 11 onwards. The plan also offers a guaranteed minimum surrender value, with the policy value earning an interest of 2% per annum when a full surrender is made regardless of the performance of both the Index and General Accounts.
Healthy lifestyle benefits
To encourage clients to live a healthy lifestyle and improve their health, HSBC Life Diamond Prestige IUL includes benefits and incentives pegged to health improvements and positive habits.
- Clients may enjoy a 1% discount on insurance charges for 10 years by demonstrating improvement in risk factors such as being overweight, diabetes, and high blood pressure by the end of the 3rd policy year.
- Insured smokers enjoy the lower policy charges of a standard non-smoker for the first three policy years, and will continue to do so if they prove at the end of the 3rd policy year that they had quit smoking for at least 12 consecutive months prior.
“The HSBC Life +Factor study4 has shown us that the financial, physical, and mental dimensions of well-being are interconnected, and physical wellness contributes to financial fitness. By incentivising our clients to improve their physical health, we are taking a total wealth approach in supporting our clients along their life journeys. Our aim is for our clients to possess the well-being necessary to enjoy a good quality of life for themselves and their loved ones,” Mr. Bindra added.
HSBC Life Diamond Prestige IUL is available through all HSBC Life Singapore distributors and representatives.
The launch of HSBC Life Diamond Prestige IUL underscores HSBC’s ambition to become Asia’s leading wealth manager and strengthens our capabilities in Singapore as a key international wealth hub within the ASEAN region to support our affluent and international clients.
1Knight Frank The Wealth Report 2022
2Wealth-X Preservation and Success: Family Wealth Transfer 2021
Media enquiries:
Dorlisa Goh Dorlisa.goh@hsbc.com.sg
Note to Editors:
- The HSBC Life Diamond Prestige IUL brochure is available at https://grp.hsbc/DiamondPrestigeIUL
- Illustrative example of crediting rate for Index Account.
- In the Quality of Life report, HSBC in partnership with Bloomberg Media Group explored the concept of a good Quality of Life across different generations of affluent individuals in nine markets including Singapore. The comprehensive analysis delves into the intricate relationship between physical and mental wellness, and financial fitness, shedding light on life objectives, the role of financial planning and preparedness and the evolving nature of retirement. For more information on the study, please visit https://internationalservices.hsbc.com/quality-of-life/.
- The HSBC Life +Factor Study looks into the interconnectedness of physical, mental, and financial well-being. For the 2022 study, 6,829 respondents from Singapore, Hong Kong, mainland China, and the UK participated in the research. For more information on the study, please visit https://www.insurance.hsbc.com.sg/health-and-wellbeing/.
HSBC Life Singapore
HSBC Life (Singapore) Pte. Ltd. is a wholly owned subsidiary of HSBC Insurance (Asia Pacific) Holdings Limited, which is ultimately owned by HSBC Holdings plc, the London-based holding company of the HSBC Group. HSBC Life Singapore has received an A+ rating by Standard & Poor’s, most recently affirmed in February 2024. It provides a wide range of solutions that cater to life, health, retirement, protection, education, legacy planning, and wealth accumulation needs of retail and corporate clients.
HSBC Singapore
HSBC opened its first branch in Singapore in 1877. A qualifying full bank serving international needs of individual, corporate and institutional clients, HSBC in Singapore offers a comprehensive range of banking and financial services including retail banking and wealth management; commercial, investment and private banking; insurance; forfaiting and trustee services; securities and capital markets services. It was recognised by Asiamoney as “Best International Bank in Singapore” in 2022 and 2023.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations.