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Insurance Premium Financing

Get the flexibility you need and peace of mind you deserve.

  1. To apply for Insurance Premium Financing, the Policy must be assigned to us by an Assignment of Life Insurance. Once you have agreed and signed the Assignment of Life Insurance, the rights under the Policy, including but not limited to your right to cash withdrawal, are transferred to us. As such, any changes or amendments to the Policy (including but not limited to cancel from inception, surrender, application for loans, cash withdrawal and transfer of ownership under the Policy) will be subject to our approval.
  2. Where the loan is still outstanding when the policy benefits are payable under the Policy, the benefits are used to repay the outstanding loan balance first, with the remaining amount, if any, paid to you or your beneficiary(ies). You or your beneficiary(ies) may not receive any money if there is no remaining amount. You should consider the impact on you or your beneficiaries who are likely to receive lower entitlements if you opt for Premium Financing.

For detailed risk disclosures, please kindly refer to the offering documents for further details including fees, charges and risk factors.

What is Insurance Premium Financing?

Insurance Premium Financing by HSBC offers you the flexibility to pay part of your new insurance premiums with a fixed term loan. With this, you can get the insurance coverage that matches your needs, while having liquid funds on hand.

This is available for specific life insurance plans underwritten by HSBC Life (International) Limited. For details, please contact your Relationship Manager or HSBC Jade Director.

Features and benefits

Extra liquidity on new insurance purchases

With the flexibility from Insurance Premium Financing, you may not have to face the prospect of needing to liquidate assets to fund payments.

Available for a wide range of insurance products

We have a number of universal life and whole-of-life insurance products, which are eligible for Insurance Premium Financing, to meet your various wealth goals and protection needs.

Competitive interest rates

Our low borrowing costs allow you to have more flexibility to grab the chance to possibly profit from interest differentials when you reallocate your funds for other purposes.

Flexible to meet changing needs

Our flexible 10-year term loan is here to help meet your liquidity needs. If circumstances change, you can easily terminate your Insurance Premium Financing with an early redemption anytime without any penalties.

How it works

Let's say you're interested in a life insurance policy with a total premium payment of USD744,000.

Based on its guaranteed cash value of USD622,500 and financing ratio of 80%, Insurance Premium Financing can provide a loan amount of USD498,000. You will have to pay the rest of the premium at USD246,000 and the monthly interest incurred by the loan during the loan tenor. The loan principal has to be paid only at tenor end.

Please see the illustration example1 below:

Item
Amount
Life insurance total premium payment
USD744,000
Guaranteed cash value of policy
USD622,500
Total Insurance Premium Financing loan amount

USD498,0002

 

(USD622,500 x 80% financing ratio)

Total premium to be paid by customer

USD246,000

 

(USD744,000-USD498,000)

Total monthly interest3 payment for the whole loan tenor

 

(USD Best Lending Rate – 1.5%, minimum 0.75%)

USD62,2502

 

(USD498,000 x 1.25% x 10 years)

Please see the illustration example1 below:

Item
Life insurance total premium payment
Amount
USD744,000
Item
Guaranteed cash value of policy
Amount
USD622,500
Item
Total Insurance Premium Financing loan amount
Amount

USD498,0002

 

(USD622,500 x 80% financing ratio)

Item
Total premium to be paid by customer
Amount

USD246,000

 

(USD744,000-USD498,000)

Item

Total monthly interest3 payment for the whole loan tenor

 

(USD Best Lending Rate – 1.5%, minimum 0.75%)

Amount

USD62,2502

 

(USD498,000 x 1.25% x 10 years)

Contact your Relationship Manager or HSBC Jade Director to know more about the details.

Are you eligible?

To apply, you need to be :

  • aged 18-64
  • an HSBC Jade / Premier customer

Need help? Consider our advisory services

Book an appointment

To help us better understand your needs, simply arrange an appointment with us.

Call us

We'll answer any queries you might have through a phone call. 

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Notes

  1. The above example is for illustration purposes only. The loan is offered in USD only. The interest rate offered depends on the floating USD Best Lending Rate (BLR), subject to a minimum rate of 0.75% and may change from time to time.
  2. You are only required to pay interest during the loan tenor, but you must settle the outstanding loan balance at the end of the loan tenor or interest will continue to accrue daily at the default interest rate on the outstanding loan principal until the date of repayment. You are required to have sufficient funds in your repayment account to pay monthly interest and repay the loan principal. If any payment of monthly interest is overdue for 90 days, or the repayment of total outstanding loan balance is not paid within 60 days from expiry of the loan tenor, the policy will be surrendered to repay the outstanding loan balance, being loan principal, interest, fees and charges (if any).
  3. Interest is charged on the actual number of days and calculated based on 360 days in a year.
  4. This service is subject to customer insurance needs, details of customers' circumstances, affordability assessment,  any other appropriate suitability assessment(s) and credit approval.
  5. The loan is subject to the Insurance Premium Financing Terms and Conditions
  6. To borrow or not to borrow? Borrow only if you can repay!