HSBC Life Singapore has introduced a new whole life insurance product, Life Treasure III, aimed at addressing the country’s existing protection gap in mortality and critical illness coverage.
A study by the Life Insurance Association (LIA) in 2022 revealed a 21% shortfall in mortality coverage and a more significant 74% gap in critical illness coverage for economically active residents.
HSBC Life Singapore said Life Treasure III offers policyholders the option to multiply their coverage and includes an accidental death benefit, along with critical illness riders designed to enhance coverage.
Harpreet Bindra, CEO of HSBC Life Singapore, noted that while many people in Singapore are focused on wealth-building through savings and investments, they often lack sufficient insurance to cover death, disability, or critical illness. The new Life Treasure III plan aims to help bridge this gap.
The policy allows customers to multiply their coverage by factors of 2.5, 3.5, 4.5, or 6, offering flexibility in selecting the multiplier. For instance, a policyholder in their 30s with a basic sum assured of SG$50,000 could enhance their coverage to SG$300,000, maintaining this level until age 70.
The embedded accidental death benefit provides additional protection, offering a payout equal to either the basic sum assured or the multiplied amount in case of death from an accident, up to age 80.
Along with multiplier options, the Life Treasure III policy features riders that cover a broad spectrum of critical illnesses. One example is the Early Critical Illness Benefit III rider, which offers protection for 170 conditions across early, intermediate, and advanced stages, including special and juvenile illnesses.
The policy also includes the Guaranteed Insurability Option (GIO), allowing clients to purchase additional coverage during life events without having to undergo further medical evaluations.
HSBC Life has also made updates to its term life policies, enhancing critical illness coverage for HSBC Life Term Protector and Term Protector Prime.
Both policies now offer extended coverage up to age 85, giving customers more options to align their insurance needs with their financial goals.
A notable feature of Life Treasure III is its cash value component, which can be accessed through annual payouts over a 10-year period once the multiplier coverage term ends. This feature is intended to provide additional retirement planning support. Other customisable options include family support benefits and premium waiver riders.
To increase accessibility to the new product, HSBC Life Singapore plans to use a multi-channel distribution strategy and strategic partnerships.
The move aligns with HSBC’s broader efforts to grow its presence in Singapore’s insurance market and cater to the evolving needs of its customers, particularly in the areas of health and wealth management.
This launch comes after the earlier introduction of HSBC Life’s Diamond Prestige IUL, an indexed universal life product, and the broader life insurance market’s growth in the first half of 2024.
