HSBC insurance

tessywessy

Hi just want to know if anyone has gone with HSBC for life and critical and income protection and been happy or wished they shopped about ...we are looking around for a better deal for income protection as we thought the deal the bank offered was expensive, another question
I asked the bank if they cover children with critical illnesses and he said that he hasn't heard of it ..we cover us as been parents but what about our child if she is very ill the last thing you want to do is work! so is there protection for your child being critically ill. cheers

ACG

HSBC is one contract for life, CI and IP i never looked into - they only sell it in their banks not through advisors etc.

I would say its probably not the cheapest, generally buying through banks isnt the cheapest.

Most Critical Illness policies do have childrens cover included - usually from the baby being 30 days old up until around 18 years of age (it can vary from insurer to insurer). Its actually also one of the biggest pay outs with some insurers- although its usually limited to a percentage or a set amount (whichever is the lower - around £25k).

Its good to see your looking at all the options (Life, CI and Income Protection) not just the most common ones (Life and CI) to make sure your getting the right cover.

I do say this a lot on here but i also believe it (even if i might be biased) but i would suggest speaking to a mortgage or financial advisor. Atleast then if your under insured, over insured, wrongly insured etc you have some recourse. They will/should also its set up properly to ensure it gets paid out quickly when you/your family need it (ie avoiding probate).

Sorry for the long post. Its probably given you more questions than answers.

LLouiseR

There are some comparison tables for different types of insurance on the governments money advice service website.
http://tables.moneyadviceservice.org.uk/Comparison-tables-home/PPI/Compare-Payment-Protection-Insurance/
However I found it not so helpful as I am on a fixed term contract. Some like HSBC didn't show up, but as I was employed with the same employer for 5 years they agreed to cover me.

The possible combination of things is mind bogglilng - how long a waiting period do you want? how long do you want to be able to claim on the insurance? Any pre-existing illnesses, what illnesses are covered. You need to be very clear on what you actually want - not just look at £££ at the end of the month.

I do wish I had looked around a bit more, but at the time, it was not possible. I remember that HSBC, for me, wasn't that unreasonable, but probably wasn't the cheapest.

kingstreet

The best "IFA" products cover many more conditions than the bank products, cover less serious conditions for an earlier proportionate payout and are a lot cheaper.

Childrens' critical illness cover is a feature of many IFA products. Some also include childrens' cover in their income protection propositions.

An IFA would find you the best/cheapest cover combination for your needs from all the different providers.

tessywessy

Thanks for all your information,

looked on the comparison websites and within two min i had calls from brokers i didn't know what to think so asked them to leave emails in my inbox with the information i needed

I would like to know what max month benefit means as i just couldn't understand the meaning.some companies offer more than 50% i don't know if this is something i should look for when finding a income insurance

We want accident and illness cover over a term of 25 years
own occupational we do not want our policy reviewed so guaranteed also

Thank you

tessywessy

Please could you tell me the difference between level and indexed
thank you

kingstreet

Insurers set a maximum monthly benefit so you're better off working than being off sick. This tends to be around the 50% of income mark now the benefits are paid tax-free.

Level means the payments stay the same for ever. Indexed means the benefits increase each year at a preset level, or by RPI. Be careful, as benefits increase with RPI while premiums can often be RPI x 1.4 or something similar.

25 years? I'd recommend you consider writing income replacement cover until your retirement age. You cannot guarantee a need will end just at the point your mortgage is repaid.

Defaqto carries information on the quality of products you find on comparison sites. Don't just select the cheapest, look for quality. Find an IFA from recommendations of friends and relatives. Trying to source the best cover and the best way of writing cover isn't best approached electronically.

http://star-ratings.defaqto.com/income-protection?ProductTypeView=StarRatingsCenter_PaymentProtection_IncomeProtection_ProductDetails

You can also source local IFAs here;-

https://www.unbiased.co.uk
switch off the website/email only option or you'll only get the paid-for adverts.