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Important Information



Extended Term Insurance Refund Arrangement

Insurance Policy Anniversary Pack

Financial Strength

Identity of Service Provider

Underwriters

Authorisation Status

Policy dividend for Participating Products (not applicable to HSBC Wealth Goal Insurance Plan)

Policy dividend for Participating Products (applicable to HSBC Wealth Goal Insurance Plan only)

Policy Crediting Interest Rates (for Universal Life insurance products)

Insurance Terminology Glossary

Customer Feedback

Extended Term Insurance Refund Arrangement

To ensure continuing protection for our customers, some of our life insurance policies will become Extended Term Insurance if a premium is not paid when due. As part of our ongoing commitment to improving customer service, a review has been conducted recently in the way which our life insurance policies were managed following non-receipt of premium. We have identified that some policyholders of the following life insurance plans are affected by calculation error at the time of the conversion of the Extended Term Insurance benefits.

  • LifeSave Protection Plus
  • Lifestyle Education Protection Plus
  • Lifestyle Protection Plus
  • Lifestyle Retirement Protection Plus
  • Lifestyle Wealth Protection Plus
  • Lifetime Protection Plus
  • SaveEnrich Protection Plus (2-year payment)
  • Target Protection Plus
  • WholeLife Protection Plan

Since August 2017, we have been contacting these policyholders on the matter. If you have been contacted and / or have any queries, please call our HSBC Life Insurance Service Hotline on (852) 3128 0145 (Monday to Friday from 9am to 6pm, Saturday from 9am to 1pm).

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Insurance Policy Anniversary Pack

Introductory Video

How to Interpret Your Benefit Illustration (for Participating Products)


How to Interpret Your Benefit Illustration (for Universal Life Products)


Frequently Asked Questions


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Financial Strength

Standard & Poor's
HSBC Life (International) Limited is rated AA-

Standard & Poor's category description 'AA':
An insurer rated "AA" means very strong capacity to meet financial commitments.
Rating 'AA' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

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Identity of Service Provider

The Hongkong and Shanghai Banking Corporation Limited is an insurance agent authorised by HSBC Life (International) Limited and AXA General Insurance Hong Kong Limited.

Address: 1 Queen's Road Central, Hong Kong SAR
Telephone Number:
For HSBC Premier customers: (852) 2233 3322
For HSBC Advance customers: (852) 2748 8333
For Other customers: (852) 2233 3000


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Underwriters

The life insurance plans are underwritten by HSBC Life (International) Limited ("HSBC Life") and the medical and general insurance plans are underwritten by AXA General Insurance Hong Kong Limited ("AXA"). HSBC Life is authorised and regulated by the Office of the Commissioner of Insurance ("OCI") of the Hong Kong Special Administrative Region ("HKSAR") to carry on long-term insurance business in the HKSAR. AXA is authorised and regulated by OCI to carry on general insurance business in the HKSAR. The Hongkong and Shanghai Banking Corporation Limited ("HSBC") is an insurance agent authorised by HSBC Life for the distribution of life insurance products in the HKSAR and also by AXA for the distribution of medical and general insurance products in the HKSAR.

Address:
For Life Product: 18/F, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong SAR
For Medical Product: PO Box 90784 Tsim Sha Tsui Post Office
For General Insurance Product: PO Box 90918 Tsim Sha Tsui Post Office

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Authorisation Status

Insurance products offered by AXA General Insurance Hong Kong Limited are only available for subscription by residents of the Hong Kong SAR applying in Hong Kong SAR.

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Policy dividend for Participating Products
(not applicable to HSBC Wealth Goal Insurance Plan)


Participating policy


HSBC Life (International) Limited ("the Company") issues participating policies, which are life insurance contracts providing both guaranteed and non-guaranteed benefits. The non-guaranteed benefits comprise the policy dividends which allow policyholders to participate in the financial performance of the life insurance operation. The policy dividends, if any, are in form of:

i) Annual dividends which are declared by the Company on an annual basis. Once declared, the amount of annual dividends for the year becomes vested and will be credited to your policy.
ii) Special bonus(applicable to Income Goal Insurance Plan only) which is a one-off entitlement declared at some a pre-determined policy year or upon early termination of the policy (e.g. death, surrender etc.) before the pre-determined policy year. The amount of special bonus may change from time to time based on the performance over the entire period before such declaration as well as the prevailing market condition and the actual amount will not be determined until it is payable.

Please refer to the policy provision of the respective plans for detailed terms and conditions.

The policy dividends (including annual dividends and special bonus) are not guaranteed, whether they are payable and the size of the dividends to be paid depend on how well the Company has performed with regard to investment returns on the assets supporting the policies, as well as other factors including but not limited to claims, lapse experience, expenses, and the long term future performance outlook. If the performance over the long term is better than assumed level, then dividends paid would increase and if performance is worse than expected then dividends paid would reduce.

The key feature of participating policies over other forms of insurance policies is that in addition to the guaranteed benefits receivable, policyholders will also benefit from additional dividend payments if the insurance company's performance is better than that required to support the guaranteed benefits. The better the performance, the greater the dividend payments, and, conversely, the worse the performance, the lower the dividend payments.


Dividend Philosophy

The Company conducts regular review on the level of dividends payable to policyholders. Both the actual performance in the past and also management's outlook of the long term future performance will be assessed against the assumed level, if there were variances arisen, they will then be considered sharing with policyholders through the adjustment of dividend scales.

When considering the adjustment of dividend scales, the Company also operates a smoothing philosophy in order to maintain a more stable payout to policyholders, so the level of dividends will only be changed if the actual performance is significantly different from the assumed level over a period of time or if management's expectation of the long term future performance changes substantially.

In order to ensure the fairness between policyholders of participating products, the Company will carefully consider the experiences of different groups of policies (e.g. different products, currencies, issue years etc.) so that each group of policies will receive a fair return reflecting mostly its own performance. To balance the interest between policyholders and shareholders, a dedicated committee is established to provide independent advice on the management of the participating policies and the determination of dividends.


Investment Policy and Strategy

The Company follows an asset strategy that

i) Ensures that we can meet the guaranteed benefits that we have committed to you;
ii) Delivers to you competitive long-term returns through the non-guaranteed dividends and bonuses; and
iii) Abides by a pre-defined set of risk tolerance.

The assets supporting the participating policies predominantly consist of fixed income assets issued by government and corporate entities with good credit quality (average A-rated or above) and long term prospects. Growth assets, including equity-type investments and alternative investments such as property, private equity and hedge fund as well as structured products including derivatives, are utilized in order to deliver returns reflecting real economic growth in the long run.

Our investment portfolios are well diversified in different types of assets,and are invested in different geographical markets (mainly Asia, US and Europe), currencies (mainly HKD and USD) and industries.

Target Asset Allocation


Asset Type Allocation %
Income Goal Insurance Plan Other Plans
Fixed Income 60%-100% 80%-100%
Growth Assets
- Equities
- Alternative Investments
0%-40%
0%-30%
0%-30%
0%-20%
0%-15%
0%-15%

There could be slight deviation from the above range due to market fluctuation.


Actual allocations will take into consideration past investment performance of the assets supporting the policies, prevailing market conditions and future outlook, and the guaranteed and non-guaranteed benefits of the policies. This includes assessing factors such as risk tolerance and real economic growth over the appropriate time horizon.

For assets supporting Income Goal Insurance Plan, the exposure to growth assets is normally within the range of 0% to 40% during the accumulation period and the exposure will be reduced at the absolute discretion of the Company during the annuity period in order to achieve a relatively stable investment return.


Accumulation interest rate

Policyholders can choose to accept their dividends, endowment coupons and annuity payments either in cash or to leave them with the Company to accumulate with interests (if applicable). The rates of interests are not guaranteed and will be determined by the Company from time to time. The review on such accumulation interest rates will be conducted regularly with reference to the portfolio bond yields, prevailing market conditions, outlook on bond yields, and the likelihood of policyholders leaving their payment for accumulation.


Fulfillment Ratio and Total Payout Ratio

Fulfillment Ratio - in respect of non-guaranteed benefits


Total Payout Ratio - in respect of total benefits including guaranteed and non-guaranteed benefits

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Policy dividend for Participating Products
(applicable to HSBC Wealth Goal Insurance Plan)


Participating policy

HSBC Life (International) Limited ("the Company") issues participating policies, which are life insurance contracts providing both guaranteed and non-guaranteed benefits. The non-guaranteed benefits comprise the policy dividends which allow policyholders to participate in the financial performance of the life insurance operation. The policy dividends, if any, are in form of:

i) Special bonus which is an entitlement declared upon early termination of the Policy (e.g. death, surrender, etc.), the exercise of Policy Value Management Option or at policy maturity. The amount of special bonus may change from time to time based on the performance over the entire period before such declaration as well as the prevailing market condition and the actual amount of special bonus (if any) will not be determined until it is payable.

Please refer to the policy provision of the respective plans for detailed terms and conditions.

The special bonus is not guaranteed. Whether it is payable and the amount to be paid depends on how well the Company has performed with regard to investment returns on the assets supporting the policies, as well as other factors including but not limited to claims, lapse experience, expenses and the long-term future performance outlook. If the performance over the longer term is better than the assumed level, then the special bonus to be paid would increase and if performance is worse than the assumed level then the special bonus to be paid would reduce.

The key feature of participating policies over other forms of insurance policies is that in addition to the guaranteed benefits, policyholders will also benefit from an additional special bonus payment if the insurance company’s performance is better than that required to support the guaranteed benefits. The better the performance, the greater the special bonus, and, conversely, the worse the performance, the lower the special bonus.


Dividend philosophy

The Company conducts regular review on the level of special bonus payable to policyholders. Both actual performance in the past and also management's outlook of the long-term future performance will be assessed against the assumed level. Where variances arise, gains and losses will be shared with policyholders in a fair and equitable manner through the adjustment of special bonus scales.

When considering the adjustment of scales for special bonus, the Company also operates a smoothing philosophy in order to maintain a more stable payout to policyholders, so the level of special bonus will be changed if the actual performance is significantly different from the assumed level over a period of time or if management's expectation of the long-term future performance changes substantially. We could reduce the amount of smoothing or even stop smoothing out the effects of the change in asset values for a time in the determination of special bonus. We would do this to protect the interests of the remaining policyholders. For example, we may reduce smoothing when payouts with smoothing are higher than payouts without smoothing.

To ensure fairness between policyholders of the participating products, the Company will carefully consider the experiences of different groups of policies (e.g. different products, currencies, issue years etc.) so that each group of policies will receive a fair return reflecting mostly its own performance. To balance the interest between policyholders and shareholders, a dedicated committee is established to provide independent advice on the management of the participating policies and the determination of special bonus.


Investment policy and strategy

The Company follows an asset strategy that:

i) Helps to ensure we can meet the guaranteed benefits we have committed to you;
ii) Delivers competitive long-term returns through the special bonus; and
iii) Abides by a pre-defined set of risk tolerances.

The assets supporting the participating policies consist of fixed income and growth assets. The fixed income assets predominately include fixed income assets issued by government and corporate entities with good credit quality (average A-rated or above) and long-term prospects. Growth assets, including equity-type investments and alternative investments such as property, private equity or hedge funds, as well as structured products including derivatives, are used to deliver returns reflecting real economic growth in the long run.

Our investment portfolios are well diversified in different types of assets and are invested in different geographical markets (mainly Asia, the US and Europe), currencies (mainly US dollars) and industries. The assets are carefully managed and monitored according to a pre-defined set of risk appetites.


Target asset allocation

Asset type Long-term Target Allocation%
Fixed income 30%-50%
Growth assets 50%-70%

Actual allocations will take into consideration past investment performance of the assets supporting the policies, prevailing market conditions and future outlook and the guaranteed and non-guaranteed benefits of the policies. This includes assessing factors such as risk tolerance and real economic growth over the appropriate time horizon. Subject to our investment policy, actual asset allocation could deviate from the above long-term target allocation from time to time.

For policies with the Policy Value Management Option exercised, the assets supporting the Policy Value Management Balance are 100% invested into fixed income assets.


Accumulation interest rate

Policyholders can choose to exercise the Policy Value Management Option to allocate a portion of the Net Cash Value to the Policy Value Management Balance to accumulate with interest (if any). The rates of interest are not guaranteed and will be determined by the Company from time to time. The review of such accumulation interest rates will be conducted regularly with reference to the portfolio bond yields, prevailing market conditions, outlook on bond yields and the likelihood and duration of policyholders leaving their payments for accumulation.

The policy in determining the special bonus (if any) and accumulation interest rates may be reviewed and adjusted by the Company from time to time.

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Policy Crediting Interest Rates (for Universal Life insurance products)


Universal Life insurance products

Universal Life insurance products are long term insurance plans offering a high level of protection with competitive features and flexibility for policyholders' multi-generational planning needs and other insurance needs. For details of the product features and key risks of Universal Life insurance products, please refer to the relevant product materials and policy provisions or contact your relationship manager or insurance consultant.

The benefits provided by Universal Life insurance products are impacted by the crediting interest rates as well as applicable charges. The General Crediting Interest Rate is a floating rate determined by the Company, subject to a guaranteed minimum floor as stipulated on policy provisions.

Philosophy in deciding the General Crediting Interest Rate

The applicable General Crediting Interest Rates vary depending on the policy currency and product series. Such rates are regularly reviewed by the Company at its discretion. The Company will inform policyholders concerned for any subsequent change of the General Crediting Interest Rates for their policies.

When determining the General Crediting Interest Rate, which applies to each Universal Life insurance policy, the Company considers the investment returns on the underlying assets supporting the policies, as well as other factors, including but not limited to: the outlook of the long term future investment returns, the claims and surrender experience, and the expenses. If the investment returns over the long term are better than expected, then the General Crediting Interest Rate would increase and if the investment returns are worse than expected, then the General Crediting Interest Rate would reduce.

The investment returns on Universal Life underlying portfolios include interest earnings as well as losses or gains realized upon the disposal of assets or asset impairments. The claims include the cost of providing the death benefit and other insured benefits under Universal Life insurance policies. The surrenders include total and partial surrenders, and their corresponding impact on investments. The investment returns on Universal Life underlying portfolios are not guaranteed.

In order to ensure that discretion exercised when defining the crediting interest rates is fair to all policyholders, and that any conflicting interests of policyholders with other policyholders and/or shareholders have been addressed having due regard to the fair treatment of policyholders, the Company established a dedicated committee providing independent advice on the management of the universal life business.

Investment philosophy for Universal Life Underlying Portfolios

The Company maintains a prudent approach to investing for the Universal Life underlying portfolios, with the primary goal being the delivery of long term value to policyholders.

Each portfolio is invested in Corporate and Government bonds under pre-determined diversification and rating objectives. The current long term investment strategy is to invest in diversified long term investment grade bonds rated BBB- or above. Unrated bonds may also be considered if they fit the Company's risk appetite profile. However, the Universal Life underlying portfolios are conservatively positioned to limit the exposure to unrated bonds. The bonds are held by the Company to maturity in order to match its long term liabilities. Subject to our investment policy, derivatives may be utilized to manage the investment risk exposure, for matching between assets and liabilities and for efficient portfolio management.

For the historical crediting interest rates of the Universal Life insurance products of the Company, that had new policies issued in the previous 5 years, please refer to this document.

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Insurance Terminology Glossary


With effect from 1 July 2017 (except for the Jade Universal Life Plan as specified below), the following new insurance terminology shall be used for the purpose of reading the policy provisions and other documents related to your policy. Please note that the below changes will not impact the original meanings and definitions of the insurance terminology for your policy concerned.


Participating Product

Income Goal Insurance Plan

Terminology currently used (if applicable) New terminology
(with effect from 1 July 2017)
General Meaning
Terminal Bonus Special Bonus A non-guaranteed amount to be declared by the Company at its absolute discretion.

Universal Life Products

Goal Access Universal Life Plan

Terminology currently used (if applicable) New terminology
(with effect from 1 July 2017)
General Meaning
Administrative Charge Change of Life Insured Charge The charge which may apply in the case of Change of Life Insured. The Company reserves the right to impose the charge, as shall determine from time to time.
Benefit Amount Sum Insured / Protection Amount The amount at any time specified as such under the Policy Schedule or in any Policy Endorsement.
General Crediting Rate General Crediting Interest Rate The rate of interest credited to the Account Value of the policy.
Guaranteed Minimum Crediting Rate Guaranteed Minimum Crediting Interest Rate The minimum rate of interest credited to the Account Value as specified in Policy Schedule 2.

Savings Protection Plus; Integrated Protection Plus

Terminology currently used (if applicable) New terminology
(with effect from 1 July 2017)
General Meaning
Balance in the Savings Fund Account Value The accumulation of premiums paid, with interest added less any charges, and any previously withdrawal amounts (if any) in accordance with the terms and conditions of the policy.
Savings Bonus Rate Crediting Interest Rate The rate of interest credited to the Account Value of the policy.

Jade Universal Life Plan

Terminology currently used (if applicable) New terminology
(with effect from 6 June 2016)
General Meaning
Administrative Charge Currency Switch Charge The charge which may apply in the case of Currency Switch. The Company reserves the right to impose the charge, as shall determine from time to time.
Administrative Charge Change of Life Insured Charge (For Jade Global Generations Universal Life/ Jade Ultra Global Generations Universal Life)
The charge which may apply in the case of Change of Life Insured. The Company reserves the right to impose the charge, as shall determine from time to time.
Attained Age Insurance Age As at any date, the age of the Life Insured or Policyholder (as applicable) specified as Insurance Age at Effective Date in Policy Schedule 1 plus the number of completed Policy Years.
Crediting Rate Crediting Interest Rate The rate of interest credited to part or all of the Account Value of the policy.
General Crediting Rate General Crediting Interest Rate The rate of interest credited to the Account Value of the policy upon expiry of any Guaranteed Crediting Interest Rate Lock period; and to the Account Value in relation to all premiums paid into the policy subsequent to the First Premium.
Guaranteed Interest Rate Lock Guaranteed Crediting Interest Rate Lock The mechanism for guaranteeing a fixed rate of interest for a period of time.
Guaranteed Interest Rate Lock Rate / Interest Rate for the Guaranteed Interest Rate Lock Period Crediting Interest Rate for the Guaranteed Crediting Interest Rate Lock Period The rate of interest credited to the Account Value of the policy in relation to the First Premium paid into the policy.
Guaranteed Minimum Crediting Rate Guaranteed Minimum Crediting Interest Rate The minimum rate of interest credited to the Account Value.

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Customer Feedback

We welcome any feedback about this web site or about the Bank's insurance services and products. Please contact us via email or call (852) 2233 3322 for HSBC Premier customers, (852) 2748 8333 for HSBC Advance customers or (852) 2233 3000 for other customers.

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In the event that we have not resolved any claim to your satisfaction, you may contact Insurance Claims Complaint Bureau(ICCB), an independent industry body established for the purpose of revolving personal claims issues, on (852) 2520 1868, or visit the ICCB website.

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