HSBC Life launches one of its kind retirement solution

Ravi Philemon

HSBC Life is only one of its kind currently available in Singapore

  • A single premium retirement solution that is capital guaranteed plan and offered in USD
  • Offers a high watermark feature that locks in higher income guarantees when account values exceed previous guarantee levels
  • Offers flexibility in that policyholder can access account value with no surrender charge
HSBC Life

HSBC Insurance (Singapore) Pte. Ltd. (HSBC Life Singapore) has launched HSBC Life Variable Annuity.  A retirement plan which combines the assurance of a steady guaranteed base level of income and the ability to generate significant upside income potential. HSBC Life Singapore is the only insurer to offer this unique product currently.

Many of Singaporeans have reached a pivotal period of their lives.  They are starting to reach retirement and have a greater need to maintain a steady income for the years ahead. This solution responds to these needs by ensuring Singaporeans remain invested and protected from any sudden market fluctuations while allowing them to take advantage of any potential upside.

HSBC Life Variable Annuity offers:

  • A stream of guaranteed retirement income and potential lump sum payout at maturity
  • Fully participate in the market upside locking in higher guarantees along the way – this plan’s ratchet feature increases policyholder’s guarantee on a monthly basis whenever the account value is higher than the existing guarantee
  • Protect against downside risk – Policyholder’s monthly payout will never decrease even when the market falls
  • Flexibility to access the account value without surrender charges
  • HSBC Life FlexConcept Fund – a 10% volatility controlled fund which will invest in a blend of equity and bond markets

According to the Life Insurance Association (LIA) industry report in February 2020, Singaporeans are being pro-active in planning for their retirement.

The industry recorded a 34 per cent increase in the uptake of retirement policies in YTD 4Q2019 compared to a year ago. Retirement policies totaled S$469 million in weighted premium which forms about 11% of total weighted premiums for the year.

HSBC’s  announcement reflects an increased focus for HSBC life in Singapore. In 2019, HSBC Life Singapore added three new protection and retirement solutions targeted at both the retail and high net-worth segments to their bench strength.  They included:

  • Life Protect Advantage which offers competitive protection value with unique features including coverage of pre-existing conditions and the option to get higher guaranteed protection up to 99 years old
  • Emerald Legacy Life Plan which offers a unique feature where customers have the choice to further increase their protection cover.
  • HSBC Life Retirement Income which offers a regular stream of monthly income when the insured reaches retirement as well as additional coverage should they be diagnosed with age-related conditions and chronic diseases.

The product launches were part of HSBC Life Singapore’s business overhaul which also involved the launch of a new brand and widening its distribution channel to include independent Financial Advisory (FA) firms.

The business overhaul reflects the overall growth and evolving composition of Singapore’s insurance market, including an ageing and wealthier domestic population and a rise in international citizens seeking more sophisticated wealth and insurance solutions.

On 13 March, HSBC also rolled out a series of support measures to help retail banking customers better manage their cash flow amidst the ongoing outbreak of COVID-19.

Mr Anurag Mathur, Head of Retail Banking and Wealth Management, HSBC Bank (Singapore) said: “The COVID-19 situation has impacted many travel, hospitality and F&B businesses and trades as well as the livelihood of Singaporeans operating or working in these sectors.”

“Property loan and credit card repayment makes up a large part of many Singaporeans’ monthly expenses. We hope the support measures will provide some financial reprieve but, most importantly, help our affected customers to proactively manage their finances and tide them over during this critical period.”

HSBC Bank (Singapore)’s measures are designed to ease the financial burden of its property loan and credit card customers with a specific focus on individuals employed in vulnerable industries such as aviation, hospitality, tourism, transportation, retail and food & beverages whose monthly income were impacted by the COVID-19 outbreak. Both support measures will be available from March 13 onwards.

Mortgage Principal Repayment Deferment

Affected HSBC Bank (Singapore) property loan customers who meet the eligibility criteria including having a good repayment history can choose to defer repayment of their outstanding loan principal for six or twelve months. Under the scheme, eligible customers simply need to make interest repayment during the agreed period.

Credit Card Interest Discount

HSBC Bank (Singapore) will reduce the revolving interest rate by half for up to six months for its affected credit cardholders who meet the eligibility criteria including having a good repayment history. Upon expiry of the six-month period, any outstanding balance will be reverted back to the prevailing rate.

With the ongoing COVID-19 issue, HSBC Bank (Singapore) understands customers’ concerns with going to its branches to do banking. As such, the Bank has been proactively reaching out to its existing and new customers to help shift them to its internet and mobile banking platforms, which can support their payment and fund transfer needs.

HSBC’s announcement follows the introduction of a series of other relief measures by the bank in support of individuals, businesses and communities in Singapore that have been impacted by COVID-19. More broadly, HSBC is working with individuals or businesses facing financial distress as a result of COVID-19 outbreak to review their current situation and identify appropriate arrangements.

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