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HSBC Life Protect Advantage II Review – A Competitive Whole Life Plan

Last Updated on March 4, 2022 by Parentology

Parents rejoice! The HSBC Life Protect Advantage II is a whole life plan with limited pay premium term as well as the range of supplementary benefits. It is a participating policy with cash value upon surrendering, with both guaranteed and non-guaranteed yield.

You probably have heard of HSBC’s name around. As an insurer, HSBC Life is a part of the HSBC Group.

Setting itself with the strong features and benefits, it is one of the more competitive whole life insurance coverage plan in the market.

 

Features at a Glance for HSBC Life’s Protect Advantage II

 

Premium Term

Choose from a range of 10, 15, 20 or 25 years for premium paying. It is advisable to go for shorter premium term when getting the coverage for children. To fit into budget for the coverage that you are looking at, consider longer premium term.

 

Guaranteed Family Waiver

A unique feature from this plan and one of a kind, this is a very useful waiver as it waives off future premiums if a family member of spouse or parent were to die. For parents getting this whole life plan for kids, it is very assuring and continues to provide protection for the child financially. Highly recommended.

 

Life Extender Multiplier

There are currently 2 insurers in the market that offers this Life Extender Multiplier with the other insurer being China Taiping.

Essentially you have the option to extend the multiplier of basic sum assured to 99 years old from the usual 70 years old. Choose this at every 5th policy anniversary or at specific life stages before 60 years old. This decision however will highly likely be upon your child to make.

However do note this is only for the basic Sum Assured, meaning supplementary benefits like the early critical illness coverage riders are not included.

Fund it by paying additional premiums or request a policy loan (taking into consideration the cash value).

 

Key Life Stages Guaranteed Coverages

Upon reaching various key life stages, choose to purchase a term plan, whole life insurance or endowment plans available.

The key life stages are:

  • Change of marital status
  • Turning of age 21
  • Becomes a parent – newborn or legal adoption
  • Sending a child to Pri/ Sec/ Polytechnic/ University
  • Full-time Employment After Graduating from Tertiary Education
  • Purchases a property

 

Total Permanent Disability Coverage Until 70 years old

While the coverage for both Death and Terminal Illness is until 99 years old, the protection for Total and Permanent Disability (TPD) is until the age of 70.

 

Early Critical Protect Advantage II (Early CI rider)

  • Covering Critical Illness from early, intermediate to advance stage
  • Total of 119 critical illnesses from early to advance stage
  • Accelerated Benign Tumor Benefit – People with pre-existing benign conditions can be accepted without any coverage exclusions or premium loading.

Pre-existing Condition

Covered Conditions
Benign Breast disorder

Early or Intermediate & Advanced Stage of breast cancer

Elevated prostate-specific antigen (PSA) level

Early or Intermediate & Advanced Stage of prostate cancer

Uterine fibroid

Early or Intermediate & Advanced Stage of uterus cancer

source: HSBC Life

  • For Pre-existing conditions, should it lead to early, intermediate or advanced stage (under Covered Conditions table above), 20% of the sum assured will be paid.
  • For early and intermediate stages of the conditions, it will be paid up to $50, 000.
  • The pre-existing conditions will be underwritten on a case-by-case basis.
  • Maximum payout of critical illness is $700,000
  • Maximum payout per early and intermediate stage CI is $350,000, one of the higher ones in the market

 

Critical Protect Advantage II (CI rider)

  • Covering Critical Illnesses of the advance stage
  • Protection of 50 Medical conditions
  • Accelerated Benign Tumor Benefit – People with pre-existing benign conditions can be accepted without any coverage exclusions or premium loading. HSBC Life will also cover when the condition progresses, covering 20% of the sum assured of the CI rider
  • Benign Conditions that are covered:
Pre-existing Condition Covered Conditions
Benign Breast disorder Early or Intermediate & Advanced Stage of breast cancer
Elevated prostate-specific antigen (PSA) level Early or Intermediate & Advanced Stage of prostate cancer
Uterine fibroid Early or Intermediate & Advanced Stage of uterus cancer

source: HSBC Life

  • Critical Illness coverage capped at $3 million

 

Critical Waiver Protect Advantage II (CI Waiver rider)

  • In the event of diagnosis of advance stage critical illness, future premiums will be waived off
  • 49 medical conditions is covered for

 

Multiplier Benefit

Ranging from 2 to 5 times of the sum insured until 70 years old

 

How HSBC Life’s Protect Advantage II Works

 

HSBC Life Protect Advantage II How it Works 1b

HSBC Life Protect Advantage II How it Works 2a

HSBC Life Protect Advantage II How it Works 2b
source: HSBC Life

 

What We Like About HSBC Life’s Protect Advantage II

  • Guaranteed Family Waiver waives off future premiums in the event of the death of a family member of spouse or parent, this unique feature waives off all future premiums. Very good feature that may come in handy when the time calls for it.
  • Accelerated Benign Tumor Benefit – The whole life plan accepts people with pre-existing benign conditions without any coverage exclusions or premium loading. HSBC Life will also cover when the condition progresses, covering 20% of the sum assured of the CI rider up to S$50,000
  • One of the highest maximum early stage critical illness sum assured payout at $350, 000
  • Able to extend multiplier till age 99 for the main plan

 

What We Don’t Like About HSBC Life’s Protect Advantage II

  • TPD (Total and Permanent Disability) is only up to age 70 where as certain insurers can cover for life
  • Cash surrender value is the same for both male and female regardless of the premiums, where as other insurers will usually gauge surrender value according to the premiums paid
  • No premium waiver for early stage CI

 

HSBC Life Protect Advantage II is Suitable if You:

  • High amount of death, Terminal Illness and Total Permanent Disability Protection Sum assured at a competitive premium.
  • Maximum early to intermediate Critical Illness coverage up to $350, 000
  • Option to choose to extend the multiplier for life
  • Cash value that accumulates throughout the plan.
  • A limited premium paying term and get coverage of death, TPD as well as early stage CI for life.
  • Stable insurer with competitive whole life coverage

 

It would however be less suitable if you would like:

  • To Save for children’s education
  • To plan for child’s financial wealth planning as they grow older
  • Legacy planning of wealth
  • Savings purposes
  • Frequent withdrawals and access of cash from the insurance coverage plan.
  • Short breakeven years and have high cash value early into the plan.

Conclusion for HSBC Life Protect Advantage II Review

The HSBC Life Protect Advantage II is one of the most competitive and of value whole life insurance that comes with comprehensive critical illness coverage, benign tumor benefits as well as covering for pre-existing conditions.

When it comes to the suitability of coverage for you and your child, it is always advised to have a look around and compare across the different competitive insurers.

To find the most suitably plan based on your concerns and needs, simply fill in the form below and our friendly partnered licensed FA advisor will get in touch with you.

Based on your needs, a custom made solution will be adjusted only addressing your concern with no obligations nor hidden fees.

 

Find the most suitable coverage for you and your child today!

     

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