HSBC Term Protector / Term Protector Prime Review: Is It For You?

1. What is Term Insurance and Where Does the HSBC Term Protector Fit In?

If you are looking for insurance in Singapore, you have probably come across the HSBC Term Protector / Term Protector Prime. But first, what exactly is term insurance?

Think of it as pure protection. You pay a regular fee, called a premium, for a set number of years. In return, if you pass away or are diagnosed with a terminal illness during that time, the insurance company pays a lump sum of money to your family. This money can be a lifesaver, helping them pay off a mortgage or cover daily expenses.

Unlike other types of insurance, term plans do not have a savings or investment part. Because of this, they are much more affordable. This means you can get a large amount of coverage without breaking the bank, which is a practical tip for anyone managing a budget in Singapore.

2. A Closer Look at the HSBC Term Protector Policy

HSBC Life is the company that provides this plan. You might also remember them as AXA Singapore, now part of HSBC Life. Therefore, this plan builds on a long history in the local market.

HSBC structures the policy into two main versions:

1. HSBC Term Protector: This is the standard version, great for most people. It gives you a minimum coverage of S$100,000.
2. HSBC Term Protector Prime: This version is for those who need a much larger safety net, with a minimum coverage of S$2,000,000. It also comes with extra perks like a medical concierge service.

Key In-Built Features of the HSBC Term Protector / Term Protector Prime:

1. Flexible Timelines: First, you can choose how long you want to be covered. You can pick a set term, like 10 or 25 years, or choose to be covered until a certain age, for instance, age 65 or even to age 99.
2. Guaranteed Renewal: Next, when your plan ends, HSBC guarantees you can renew it without another medical check. However, keep in mind your premiums will go up because you will be older.
3. Option to Convert: In addition, you have the choice to convert your term plan into a whole life or endowment plan later on. This is a great feature if your financial goals change over time.
4. Protection Against Inflation: To make sure your coverage stays valuable over the years, you can choose to have it increase by the prevailing Singapore Consumer Price Index (CPI) or at a rate of 5% per year, whichever is higher. This helps your payout keep up with rising costs.
5. Choice of Currency: For the Prime plan, you can choose to have the payout in different currencies, such as Singapore Dollars (SGD), US Dollars (USD), or others. This is useful if you have family or assets overseas.

3. Customising the HSBC Term Protector: A Guide to Riders

The real power of the HSBC Term Protector & Prime comes from its optional add-ons, known as riders. These let you build a plan that fits your exact needs.

A) HSBC Term Protector & Prime: Disability and Accident Riders

• Total and Permanent Disability (TPD) Rider: This rider pays you a lump sum if you become permanently disabled and unable to work.
• Accident Rider: Furthermore, this provides an extra payout if death or disability is caused by an accident.

B) HSBC Term Protector & Prime: Critical Illness (CI) Riders

This is where the plan offers a lot of choices.

• Advance CI Rider: This rider gives you an advance from your main coverage if you are diagnosed with one of 37 major, advanced-stage critical illnesses, like a major cancer or stroke.
• Early CI Riders: For more complete protection, this rider covers up to 170 conditions, from early to late stages. It can even pay out multiple times for different illnesses.

C) HSBC Term Protector & Prime: Premium Waiver Riders

These riders are a smart safety net. They pause your premium payments if something unexpected happens, so your insurance stays active.

• CI Premium Waiver: If you are diagnosed with a critical illness of any stages, you no longer have to pay your premiums.
• Payer Premium Waiver: This is for situations where you are paying for someone else’s policy, like your child. If something happens to you, the premiums are waived.
• Involuntary Income Loss Waiver: This is a very practical feature for working adults. If you lose your job involuntarily, this rider waives your premiums for six months, giving you time to get back on your feet.

4. How the HSBC Term Protector Compares in the Singapore Market

When shopping for a term plan, it’s wise to look at the whole market. Here are some practical tips on what to compare.

1) Coverage Length and Flexibility

First, ask yourself how long you need coverage. Some plans in Singapore cover you until age 85, while others, like the HSBC Term Protector & Prime, can go up to age 99. Also, check for guaranteed renewal and conversion options. These features give you valuable flexibility for the future.

2) Critical Illness (CI) Rider Quality

Next, dig into the details of the CI riders quality. Don’t just count the number of illnesses. Instead, ask important questions. Does it cover early stages of an illness? Can it pay out more than once? A good rider provides meaningful protection when you need it most.

3) Unique Features and Waivers

Insurers often add special perks to stand out. For example, the HSBC Term Protector & Prime’s waiver for job loss is a unique benefit. Consider if these features are genuinely useful for your life situation.

4) Price versus Overall Value

Of course, price is important. You should always get a few quotes. However, the cheapest plan is not always the best. A slightly more expensive plan might offer far better features, giving you more value for your money in the long run.

5) Insurer’s Reputation

Finally, always choose a well-known insurer that is regulated by the Monetary Authority of Singapore (MAS). This ensures the company is financially stable and can pay out claims when needed.

5. HSBC Term Protector: Potential Downsides to Consider

• Not a Budget Plan: To be clear, the HSBC Term Protector & Prime is not built to be the cheapest plan on the market. Its main strength is its wide range of features. If your only goal is the lowest price, you might find simpler, no-frills plans more suitable.
• Can Be Complex: Because there are so many options, putting together a plan can feel overwhelming. For this reason, it’s a good idea to speak with a financial advisor (or us) to build a plan that is right for you without being too complicated.

6. Who is the HSBC Term Protector / Term Protector Prime Best Suited For?

This plan is a great fit for people who want to be very specific about their insurance coverage.

For instance, it works well for:

• The “Customiser”: Someone who wants to build a detailed safety net that covers much more than just basic life insurance.
• Working Professionals: The job loss waiver provides a modern and highly relevant layer of protection for anyone worried about job security.
• High-Net-Worth Individuals: The Prime version is specifically made for those who need S$2 million or more in coverage for things like business planning or preserving their estate.
• Planners Looking for Flexibility: The option to convert the plan later makes it perfect for young people whose financial needs will likely change as they get older.

7. Final Verdict on the HSBC Term Protector

In conclusion, the HSBC Term Protector / Term Protector Prime is a solid and extremely flexible term insurance plan. It stands out by offering one of the most detailed selections of riders in Singapore, allowing you to create a truly personalised safety net.

While it may not be the cheapest option, its value comes from this high degree of customisation. If you are a discerning buyer who wants comprehensive coverage from a trusted global brand, the HSBC Term Protector & Prime is definitely worth a serious look.

Compare and Save on Term Insurance

Let us compare the best term plans for you. Our advice is 100% free and without obligation.