HSBC UK Select and Cover
HSBC UK has launched Select and Cover, which is a new flexible insurance subscription service that offers between three and seven switchable covers within a single monthly subscription.
The bank’s customers can choose a minimum of three of the following types of insurance: Mobile Phone; Gadget; Home Emergency; Life; Excess Protection; Motor Breakdown, and Travel. A subscription costs from £19.50 a month, up to £45.50 a month for all seven options.
As needs or circumstances change, so customers can add or remove one option during the year, provided they always maintain a minimum of three covers. They can also change all their options once a year on the policy anniversary. Combining covers can reduce the aggregated cost, thereby saving customers money when compared to purchasing individual policies.
Select and Cover is a pay monthly service, and customers can cancel at any time without penalty. Each policy covers the policyholder, their spouse, domestic or civil partner and their children.
Select and Cover is available online to six million HSBC UK customers who are registered for online banking.
Looking at the life insurance option, Starter Life pays a £15,000 lump sum payment in the event of the death of the customer or their partner and a £5,000 lump sum payment in the event of the death of a child.
The maximum age is 50 at outset and cover lasts until the policy anniversary after reaching age 50.
Exclusions include suicide during the first 12 months, and death which occurs in the first 12 months as a result of a medical condition or related symptoms the deceased person knew about at the cover start date, whether the condition had been diagnosed or not. If a claim is made on the customer’s death, the policy ends automatically and no more premiums will be payable. Otherwise a maximum of two claims can be made within the period of cover for the death of a partner.
Comment: Market research conducted by HSBC UK showed convenience and flexibility were the two main drivers for insurance customers and identified a strong desire for subscription type services instead of fixed contracts.
Consequently, HSBC has launched a service where customers can have between three and seven types of cover, under the same subscription service.
The concept is very interesting and has the potential to see other types of protection added in future too.
Currently though, only term insurance is available and its sums insured are both low and fixed. However, it might just encourage HSBC customers to think more about what their protection needs are, and we shall watch then success or otherwise of the subscription service with interest.
Plus points: A simple to buy subscription service rather than a conventional ‘policy’; Simple underwriting adds to the ease of purchase; Covers spouse/partner and children too; Simple to buy and understand.
Not so plus points: Fixed cover levels; Currently the only protection cover is term insurance; Low sums insured; Aimed at families rather than singles; No trust option.
Website: http://www.hsbc.co.uk/insurance/products/select-and-cover/.
Rating (max 10): Overall: 7. Silver
Tags: Term insurance; HSBC