Insurance Premium Financing

HSBC HK
Wealth Financing
Insurance Premium Financing

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.
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 Premier Elite Director.

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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 Premier Elite Director to know more about the details.

Loan Interest/ Facility Fee Calculator

The loan interest/ facility fee calculator estimation is for reference only.

dpws-tools-calculator-creator

Loan calculator assumptions:

Loan interest / loan facility fee is calculated by assuming the loan / loan facility amount remains unchanged.
Loan interest is calculated by assuming interest charged is fully repaid each month (not applicable for IPO loan facility service).
Monthly interest is calculated by assuming 30 days in a month (not applicable for IPO loan facility service).
Annual interest is calculated by assuming 365 days in a year (not applicable for IPO loan facility service).

Remarks on the loan calculator:

The loan calculator estimation shown above is for reference only and does not represent the actual interest / facility fee.
HK dollar loan interest / loan facility fee is calculated based on the actual number of days elapsed and 365-days in a year or 366-days in a leap year.
US dollar loan interest / loan facility fee is calculated on the basis of actual number of days elapsed and 360-days per year.
The actual loan interest / loan facility fee amount charged may differ. Please refer to the relevant statement of the settlement account / repayment account.
The loan effective interest rate / loan facility for individual customers may vary and be subject to the applicable terms of the facility including any promotional offer. Please refer to the relevant product information.

Reference materials for the loan calculator:

You may find the relevant benchmark rates from the below links:

To borrow or not to borrow? Borrow only if you can repay!

Are you eligible?

To apply, you need to be :

aged 18-64
an HSBC Premier Elite / HSBC Premier customer

You are eligible for HSBC Premier Elite if you maintain a Total Relationship Balance (TRB) of at least HKD7.8 million with us in Hong Kong, and eligible for HSBC Premier if you maintain a TRB of at least HKD1 million with us in Hong Kong. (A Below Balance Fee of HKD380 per month will be applied if your TRB falls below HKD1 million.)

TRB includes:

Hong Kong dollar/ renminbi / foreign currency deposits
Market value of the following investments: local and overseas securities, Unit Trusts, bonds, certificates of deposit, equity linked investments, structured notes, Monthly Investment Plan (stocks/ Unit Trusts) and Wayfoong Statement Gold
Deposit amounts of Deposit Plus and Structured Investment Deposits
Utilised lending facilities (excluding mortgages and amounts outstanding on credit cards)
Life insurance with savings or investment component^*
HSBC MPF balances and HSBC ORSO Defined Contribution Scheme balances which are administered by The Hongkong and Shanghai Banking Corporation Limited
Minimum total relationship balance refers to the rolling average for the previous three months.

^*For life insurance with savings or investment component:

Investment-linked life insurance policies include the total cash value of the policies;
Other life insurance policies include the total cash value of the policies OR total premium paid less any annuity payments received (if applicable), whichever is higher.

To determine your overall TRB in sole capacity, the applicable TRB of all your personal sole account(s) held or registered with the same joint accountholder(s) under the same name(s) and identity number(s), held with the same joint accountholder(s) will be included in the calculation. There may be a time lag before the value of certain investment transactions (i.e. initial public offering subscriptions for securities, bonds, open-end funds and certificates of deposits) and life insurance policies will be included in the TRB due to the processing time required and therefore may affect the TRB in the Bank's record.

Need further information?

Need help? Consider our advisory services

Book an appointment

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

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Call us

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

HSBC Premier Elite Dedicated Service Line: +852 2233 3033
HSBC Premier dedicated hotline: +852 2233 3322

Notes

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.
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).
Interest is charged on the actual number of days and calculated based on 360 days in a year.
This service is subject to customer insurance needs, details of customers' circumstances, affordability assessment, any other appropriate suitability assessment(s) and credit approval.
The loan is subject to the Insurance Premium Financing Terms and Conditions
To borrow or not to borrow? Borrow only if you can repay!

Important risk warning