HSBC Life Insurance Review 2025 | From £4.25 Per Month

Life insurance is an important financial product that can help provide financial security to your loved ones in the event of your death or terminal illness.

HSBC offers a range of life insurance products that can help provide financial protection and peace of mind to individuals and their family members.

Please read the comprehensive HSBC life insurance review below to learn about the company’s offerings and decide whether it meets your needs and expectations. 

Compare HSBC With Other Top Insurers. Find The Best Cover For You & Help Provide Your Family With Financial Security

Online review companies aggregate customer experiences with HSBC.

Review Platform	Review Quality And Number
Trustpilot	9,898 Total Reviews
SmartMoneyPeople	A Score Of 3.42 Out Of 5. Based on 2,007 Reviews.
Fairer Finance	A claims score of 81.65% and an overall rating of 73.65%
Defaqto	The expert review platform Defaqto has given HSBC’s level term policy 4 out of 5 stars, while their decreasing term policy received an average rating of 3 stars.

Who Is HSBC? 

HSBC is one of the world’s largest banking and financial services organisations, providing life insurance solutions through HSBC Bank and more comprehensive personal insurance plans through the bank’s financial advisers, selected intermediaries, and brokers.

HSBC Life (UK) Limited is a subsidiary of HSBC Bank PLC and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

As a member of the Association of British Insurers, HSBC Life (UK) Limited is committed to maintaining high standards in the insurance industry.

In 2024, HSBC Life (UK) Limited paid 99% of life insurance claims and 95.5% of critical illness insurance claims, indicating a solid track record of delivering on its promises to customers.

Provider Overview	HSBC is a major UK bank offering term-based life insurance policies via HSBC Life (UK) Limited.
Policy Types	Level Term: Fixed payout; Decreasing Term: Reduces over time, ideal for mortgages.
Eligibility	Available to individuals aged 17–70; coverage ends by age 80.
Payout Rate	A high payout rate of 97% for claims in 2024.
Additional Benefits	Includes free terminal illness and accidental death cover.
Critical Illness Cover	Optional add-on covering 36 conditions with payouts from £10,000 to £1,000,000.
Income Protection	It covers up to 50% of pre-tax income (with a maximum of £50,000/year); deferred period options between 4 and 52 weeks.
Joint Policies	Joint life insurance is available, paying out once, typically upon the first policyholder’s death.
Policy Costs	Premiums vary based on age, health, and lifestyle. For example, £4.26/month (for someone aged 20, for a level term term policy valued at £200,000).
Trust Options	Policies can be written in trust to reduce inheritance tax and simplify payout processes.
Strengths	Affordable premiums, high payout reliability, and mortgage protection for HSBC customers.
Limitations	Limited product range (no whole-of-life policies) and fewer value-added benefits than competitors.
Cancellation Process	You can call 0345 745 6125 during business hours; consider alternatives before cancelling.

How Much Does HSBC Life Insurance Cost? 

The HSBC life insurance cost will depend on your circumstances, including the following:

• Your age

• Your overall health condition

• Your lifestyle

• Your occupation

• Your smoking habits

Age and smoking habits are some of the most important factors in determining the initial quote price for HSBC life, as well as critical illness and income cover policies.

However, other factors, such as your overall health, medical history, lifestyle, and occupation, can influence the final price.

This is why it’s essential to disclose all relevant information to the insurance provider so that they can provide an accurate and fair quote.

If you have any pre-existing health conditions or work in a high-risk job, finding a policy that offers comprehensive coverage at an affordable price may be challenging.

An insurance specialist can help you understand your options and find the best policy for your individual circumstances.

It’s always better to be upfront and honest about your health and occupation when applying for life insurance, as this will help ensure that your policy provides coverage in the event of a claim.

The table below illustrates sample monthly quotes from HSBC for both level and decreasing-term life insurance plans.

So, how much is HSBC Life insurance per month? The table below breaks down current policy costs and is updated often by the Insurance Hero team.

These numbers are based on a non-smoker in fair health requiring £200,000 of coverage over 20 years.

Persons Age	Decreasing Term Cover	Level Term Cover
25	£3.87	£4.25
30	£5.09	£6.52
35	£6.72	£9.33
40	£9.87	£13.75
45	£14.23	£20.18
50	£20.46	£32.78
55	£23.71	£25.16

Types of HSBC Life Insurance Policies 

HSBC offers both level life insurance and decreasing life insurance, with coverage of up to £2,000,000, a minimum term of 5 years, and a maximum term that extends to age 80.

The monthly premiums for HSBC life insurance are fixed for the duration of the coverage, providing customers with predictability and stability.

Terminal illness benefits are also included with life insurance through HSBC. An early death claim can be made if the policyholder becomes terminally ill and is appropriately assessed to have less than 12 months to live.

This benefit can provide additional financial support to the policyholder and their loved ones during times of difficulty.

HSBC Level Term Life Insurance Policy

Level-term life insurance is the simplest insurance plan for HSBC banking customers. It is available as a joint policy for couples or partners, and only one person needs to have an HSBC bank account.

A level cover life insurance policy pays a lump sum of money if the policyholder dies within the term of the cover, and the payout amount is always the same.

This can provide financial security for the policyholder’s loved ones in the event of their unexpected death and help cover costs such as outstanding debts, funeral expenses, or ongoing living expenses.

Individuals should carefully assess their life insurance needs and select a policy that is suitable for their specific circumstances.

Insurance experts, such as Insurance Hero, can provide guidance and advice on the best life insurance options, allowing you to compare plans and choose the one that best suits your needs. 

HSBC Decreasing Life Insurance Policy 

HSBC Life Insurance Company also offers a decreasing life insurance cover, designed to cover an outstanding repayment mortgage balance.

The sum assured decreases each month in line with the balance, assuming an interest rate of no more than 7%.

This type of life insurance can provide a cost-effective way to ensure that an outstanding mortgage balance is paid off in the event of the policyholder’s death.

The decreasing cover amount is designed to match the repayment mortgage balance over the policy term, ensuring that the outstanding balance is fully covered at all times.

HSBC Critical Illness Cover Policy

HSBC critical illness cover provides a lump sum payment if the policyholder is diagnosed with one of the conditions listed in the policy terms and conditions.

This lump sum payout can be used to pay off or pay down the policyholder’s mortgage or cover other expenses related to their illness.

Adding critical illness insurance to a life insurance policy can provide additional financial protection for the policyholder and their loved ones in the event of a serious illness or death.

The premiums for this type of cover are typically fixed for the duration of the policy, which can provide predictability and stability to customers.

HSBC’s critical illness insurance covers 35 critical illnesses and surgical procedures. Some of the examples are:

• Cancer (apart from less advanced cases)
• Benign brain tumour
• Blindness
• Heart attack
• Major organ transplant
• Multiple sclerosis
• Parkinson’s disease
• Stroke

HSBC critical illness insurance – what are you not covered for?

While HSBC’s critical illness insurance policy covers a range of serious illnesses, some conditions are not covered.

These include:

• Aplastic Anaemia
• Loss of independent existence
• Chronic lung disease
• Ulcerative colitis
• Early-stage cancers

It’s important to carefully review the terms and conditions of any critical illness insurance policy before purchasing it to ensure that it meets your individual needs.

It can be helpful to speak with a professional life insurance broker to better understand the different critical illness insurance policies available and what they cover.

An expert can help you compare different policies and find one that fits your unique circumstances and budget. Get a quote and compare plans to find the one that suits your needs. 

Partial payments for critical illness are not covered under HSBC’s critical illness insurance policy, but they may be included in other policies offered by different insurers.

These partial payments, also known as “additional benefits” or “extra cover,” can provide financial support for less severe conditions that may not meet the full definition of a covered critical illness.

This can be particularly helpful for individuals diagnosed with a condition that affects their ability to work and earn income but may not meet the full criteria for a lump-sum payout.

HSBC Whole of Life Insurance Policy 

HSBC does not offer a whole life protection policy as one of its life insurance products. 

HSBC Income Cover Policy

HSBC income cover protects against periods of incapacity to work where you suffer a loss of income.

This type of insurance is designed to replace a portion of your income if you cannot work due to illness or injury.

The income protection policy provides a regular monthly benefit, paid to you after an agreed waiting period and can continue until you return to work or until the end of the policy term.

The waiting period, or deferred period, is the time you have to wait before you can start receiving the benefit.

HSBC income cover offers two options: a 2-year or full-term cover option. The 2-year cover option benefits up to 2 years per claim, while the full-term cover option provides the benefit until the end of the policy term or incapacity ends.

The policy covers up to 50% of pre-tax earnings, with a maximum cover of £50,000 annually.

You can choose an initial waiting period of 4, 8, 13, 26, or 52 weeks. The policy also includes a rehabilitation or proportionate benefit, which can supplement your income if it’s reduced due to working fewer hours or changing the type of work because of incapacity.

HSBC Terminal Illness Benefit

HSBC’s terminal illness benefit is a common feature in many life insurance and critical illness insurance policies.

It provides policyholders with the peace of mind that they will be able to access some of their policy’s benefits if they become terminally ill and are not expected to survive for long. 

The payment can help with medical expenses or support loved ones financially during a difficult time.

However, it’s important to note that the terminal illness benefit only applies if the illness is deemed terminal and if the policyholder is expected to live for 12 months or less.

Advantages of HSBC Life Insurance 

• HSBC allows you to take out a life insurance policy and a mortgage or loan, and your premiums and payout will be linked to your outstanding debt.
• HSBC offers a free accidental death benefit that will cover you for accidental death while your life insurance application is being considered. Your loved ones would receive up to £250,000 if you died from an unintentional injury while waiting for the policy to be approved.

Disadvantages of HSBC Life Insurance

• HSBC does not offer an increasing cover policy, which will increase your premiums and payout over time.
• Other insurers may cover a wider range of illnesses and conditions under their Critical Illness protection policies.
• As with most life insurance cover, if you stop paying your premiums, you won’t get any money back, and your coverage will likely stop.

HSBC Life Insurance Calculator

Like many banks, HSBC offers a life insurance calculator, a valuable tool for determining the amount of life insurance you need.

HSBC’s life insurance calculator uses the following information to calculate your life insurance:

• Your and your partner’s income
• Your children and their ages
• Debts
• Savings
• Mortgage balance
• University fees planned
• The period of time you wish to be covered for

While life insurance calculators like the one provided by HSBC can be a helpful starting point for determining your life insurance needs, it’s important to remember that they are typically based on general assumptions and don’t take into account all of your circumstances. 

The calculator’s recommended amount of life insurance is just an estimate and should be considered a general guide rather than a definitive answer.

Your unique circumstances and priorities may influence the amount and type of life insurance appropriate for you, so it’s a good idea to speak with an insurance expert to get a more personalised assessment of your needs.

HSBC Life Insurance Review FAQs

How much does HSBC life insurance cost?

The cost of life insurance from HSBC or any other provider will depend on various factors such as the level of cover, the type of policy, and your circumstances.

In general, life insurance costs tend to increase with age, as older individuals are considered a higher risk to insure.

Other factors that can impact the cost of life insurance include your health status, your family’s medical history, your lifestyle habits (such as smoking), and the policy term length.

Some policies may also require a medical examination before approval, which could impact the cost of coverage.

Can I make changes to my HSBC life insurance policy?

Yes, you can. If your circumstances have changed, contact HSBC and ask to amend your current agreement.

For example, if you have kids and would like to increase coverage, or conversely, if your children move out and you would like to lower your protection.

HSBC may also invalidate your policy if you fail to inform them about specific changes. So even if you have started a new job or hobby or started smoking again, you might need to contact HSBC. 

Is the lump sum payment taxable?

Life insurance payments are free from income and capital gains tax for UK residents at the moment, but depending on the value of your estate, they may be subject to inheritance tax.

It’s also worth noting that tax rules may change in the future, which, as a result, can affect the tax implications on your payout.

How does the claims process work for HSBC’s life insurance?

You can claim your payment by phone by calling 0345 745 6125. If you’re based outside of the UK, you can call +44 1226 261 010. 

To ensure the process proceeds smoothly and efficiently, it is advisable to have the policy number and the policyholder’s name readily available, along with other relevant details such as proof of death.

Life Insurance HSBC contact details:

Customer Services Centre HSBC Life (UK) Limited
PO Box 1053
St. Albans
Hertfordshire
AL1 9QG

Web: https://www.hsbc.co.uk/insurance/life/

Claims: 0333 745 6125; Email: life.claims@hsbc.com