HSBC Life Insurance Review 2026: Do they still offer cover?

Is HSBC life insurance any good?

HSBC is one of the most high-profile and established global banking brands, with more than 14 million UK customers, making it the biggest bank currently. In February 2026, HSBC sold its life insurance business to Chesnara PLC for a reported £260 million and no longer offers new policies to customers in the UK. Existing policyholders can still continue to benefit from cover arranged via HSBC but will no longer be serviced by the bank. If you need help or want to speak to someone, then you should speak to an FCA-regulated broker to find out what the best options are for you.

Is HSBC accepting new life insurance customers?

No, HSBC issued a statement on 3rd July 2025 to confirm the sale and acquisition by Chesnara Life (UK), which also confirmed that it would no longer accept new life insurance applications from February 2026.

How competitive is HSBC on price?

For healthy non-smokers, HSBC premiums were reasonably competitive compared to other top life insurance brands, especially for straightforward term policies. That being said, HSBC was rarely the cheapest on the market, and applicants with medical conditions or lifestyle risks would typically find better prices elsewhere.

Are HSBC life insurance payout rates good?

HSBC reports paying over 97% of life insurance claims in 2023, which is slightly above the typical UK market average, giving reassurance that valid claims are very likely to be paid when the policy is properly set up.

Should I buy direct from HSBC or use a broker?

Buying direct from HSBC means you only see HSBC products, while using a fee-free broker lets you compare quotes and features from multiple leading UK insurers, which can help you secure more suitable cover at a lower price.

Key Points: HSBC life insurance review 2026.

• HSBC offers straightforward level and decreasing term life insurance, with optional critical illness cover and separate income protection.
• Policies are available to applicants aged 17 to 70, with cover ending by age 80 for life insurance and 75 for critical illness.
• Joint life policies are available and can be used to protect a mortgage or shared family outgoings.
• HSBC includes terminal illness cover, accidental death benefit and interim cover at no extra cost.
• Customer ratings are mixed, but expert assessments from Defaqto and Fairer Finance are generally positive.

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Our latest independent insurance review for HSBC Life Insurance explains what happened to the brand and how existing customers can still access their cover. We also look at alternative life cover options for new and existing HSBC customers following the closure in February 2026.

HSBC life insurance overview

HSBC is the largest bank in the UK, serving more than 14 million customers and offering a full range of financial services, including current accounts, loans, mortgages and protection products such as life insurance. Their life insurance offering focuses on uncomplicated, term-based cover that can be tailored with different sums insured and policy lengths to suit your needs. You can choose between level-term life insurance, which keeps the payout fixed, and decreasing term, which gradually reduces the cover in line with a repayment mortgage or other shrinking debt.

Who are HSBC UK and HSBC Life?

HSBC UK is a household-name banking brand with roots dating back more than 150 years. The UK retail bank emerged in its current form in the early 1990s when HSBC acquired Midland Bank and later rebranded its UK operations. Today, the UK head office is in Birmingham, and the bank serves millions of personal and business customers across current accounts, savings, credit cards, loans, mortgages and investment products.

HSBC’s protection products, including life insurance, critical illness cover and income protection, are provided by HSBC Life (UK) Limited. This company is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority, with Financial Services Register number 133435. That regulatory oversight, combined with the backing of a large international group, will offer comfort if you are concerned about the long-term security of any policy you take out.

HSBC life insurance products explained

HSBC keeps its life insurance range relatively simple, focusing on two core term policies: level term and decreasing term. Applicants must be aged between 17 and 70 when they apply, and cover must end by age 80.

Family life insurance

A level term policy from HSBC pays a fixed lump sum if you die during the policy term. The main features include:

• Sum assured between £10,000 and £2,000,000.
• Policy length from a minimum of 5 years, ending before your 80th birthday.
• The payout amount stays the same throughout the policy.
• Often used to help cover an interest-only mortgage, replace lost income, or provide a set inheritance for loved ones.
• If you die within the term, your beneficiaries receive the full lump sum.

This type of cover can work well if you want certainty about how much money your family will receive, regardless of when during the term you pass away.

Mortgage life insurance

Decreasing term cover is designed so that the potential payout reduces over time. Key points include:

• Sum assured between £10,000 and £2,000,000, just like level term.
• Minimum term of 5 years, with the policy ending by age 80.
• The cover reduces each year, typically alongside the balance of a repayment mortgage or loan.
• Premiums are usually lower than for an equivalent level term policy because the insurer’s risk reduces over the term.
• Commonly used to protect a repayment mortgage so that outstanding debt is cleared if you die during the term.

If you mainly want to make sure your mortgage is paid off, decreasing cover can be a cost-effective choice, especially if you are watching the monthly budget.

Joint life insurance with HSBC

HSBC offers the option to take out either level or decreasing term life insurance on a joint basis. This means two people, often partners who share financial commitments, are covered under a single policy. Joint life cover generally operates on a “first death” basis: the policy pays out once, on the death of the first insured person during the term, and then the cover ends.

Because you are insuring two lives under one plan, joint policies are usually cheaper than buying two separate single policies with the same total cover. However, after the first payout, the surviving partner is left without cover under that policy, so they may need to arrange new protection later, potentially at an older age and with a higher premium.

Using the HSBC life insurance calculator

Working out how much cover you need can feel daunting, especially if you are juggling different debts and living costs. HSBC’s life insurance calculator allows you to enter your key financial commitments and goals to produce an estimated sum assured. Typical inputs include the following:

• Outstanding mortgage balance.
• Regular household bills and living expenses.
• Personal loans, credit cards and other debts.
• Funeral costs and final expenses.
• Childcare costs, school fees or university expenses.
• Any extra cash gift or inheritance you would like to leave.
• Existing life insurance, death-in-service benefits and savings to offset the total.

As you update each field, the calculator adjusts the suggested total cover, giving you a starting point for conversations with an adviser or for comparing quotes.

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How much does HSBC life insurance cost?

The price you pay each month for HSBC life insurance will depend on an underwriting assessment of how risky you are to insure. Key factors include:

• Age: the older you are, the higher the risk of a claim during the term, so premiums increase with age.
• Medical history: existing conditions or a history of serious illness can push up premiums or, in some cases, lead to exclusions or declined applications.
• Smoking status: smokers and recent ex-smokers almost always pay more than non-smokers.
• Alcohol intake and lifestyle: heavy drinking or risky hobbies, such as skydiving, can influence your premium.
• BMI: a very low or high body mass index can be linked with higher health risks.
• Sum assured: higher payouts cost more.
• Policy type and term length: level cover and longer terms are usually more expensive than decreasing policies or shorter terms.

HSBC publishes example premiums for a 25-year term, £200,000 sum-assured level term policy for non-smokers in good health.

For a decreasing term with the same 25-year duration and a £200,000 starting sum assured, example premiums are lower:

These figures are only illustrations based on specific assumptions. Your own quote could be higher or lower depending on your health, lifestyle and exact policy details.

HSBC life insurance benefits and features

HSBC includes several added benefits at no extra cost on its term life policies, which can improve the overall value of the cover:

• Accidental death benefit: If you die from accidental bodily injury within a set period after applying, HSBC may pay out the sum assured you applied for, up to a maximum of £250,000, even before the full underwriting process is complete. This interim protection usually lasts up to 90 days from the date the insurer receives your application.
• Interim cover: There is free temporary death cover in place between application and the official start of the policy. This can help ensure your loved ones are not left unprotected while underwriting is being carried out.
• Mortgage or loan protection for HSBC customers: If you arrange decreasing life insurance to protect an HSBC mortgage or loan and the policy’s sum assured and term exactly match your borrowing, the policy can include additional protection designed to help ensure the mortgage is cleared in full if you die during the term.
• Terminal illness benefit: If you are diagnosed with a terminal illness that meets the policy definition while the plan is in force, HSBC can pay out the full sum assured early. This money can be used during your lifetime to cover care costs, repay debts or support your family.

These features are fairly standard among mainstream life insurers, but they are still important and should be checked when you compare policies.

HSBC critical illness cover

You can add critical illness cover to an HSBC life insurance policy for an additional premium. Critical illness cover pays a lump sum if you are diagnosed with, or undergo surgery for, one of the serious conditions listed in the policy. This money can help you meet household bills, fund time off work, pay for private treatment or adapt your home.

Key points of HSBC critical illness cover include:

• Available as a single or joint policy.
• Sum assured between £10,000 and £1,000,000.
• Cover is level only, not decreasing.
• Minimum term of 5 years, with cover ending by age 75.
• Available to applicants aged 17 to 70 at the start of the policy.
• A 90-day waiting period from the policy start before full critical illness cover takes effect.

HSBC’s critical illness policy covers 35 conditions, such as:

• Blindness.
• Cancer.
• Coma.
• Dementia, including Alzheimer’s disease.
• Heart attack.
• Parkinson’s disease.
• Multiple sclerosis (MS).
• Loss of speech.
• Loss of hands or feet.
• Certain intensive care situations.
• Stroke.

The complete and up-to-date list of conditions, plus details of the severity required to trigger a claim, are set out in the HSBC critical illness terms and conditions. It is vital to read these carefully so that you understand what is and is not covered, as definitions and exclusions vary between insurers.

HSBC income protection

In addition to life insurance and critical illness cover, HSBC offers income protection. This type of insurance pays a monthly benefit if you are unable to work due to illness or injury, helping to replace a portion of your income while you recover.

Key features of HSBC income protection

• Cover for up to 50% of your pre-tax earnings, capped at £50,000 per year.
• Minimum policy term of 5 years, with a maximum age at the end of the policy of 68.
• No cash in value at any point, even if you cancel the policy.
• Deferred period options typically ranging from 4 to 52 weeks, allowing you to align payments with any sick pay you receive from your employer.
• Option for a 2-year benefit period, so the insurer pays out for up to two years per claim.

HSBC also highlights the personal support provided, including a dedicated claims assessor and access to rehabilitation services to help you return to work after illness or injury. If you want to compare this against other providers, a specialist broker can offer a whole-of-market income protection comparison, often revealing different benefit levels, deferred periods and pricing that may suit your circumstances better.

HSBC life insurance reviews and ratings

It is sensible to look at both customer reviews and independent expert ratings before choosing a life insurer.

On Trustpilot, HSBC as a whole currently attracts a relatively low average rating, with a “poor” overall score based on several thousand reviews across all financial services. These reviews cover current accounts, credit cards and other banking products as well as insurance, so they do not directly reflect only life insurance performance. Nonetheless, they can give a feel for general customer service sentiment.

Expert sites such as Defaqto and Fairer Finance look more closely at product quality and customer experience. Defaqto rates HSBC’s level term life insurance at 4 stars out of 5 and its decreasing term life insurance at 3 stars, which indicates an above-average set of features for the level term option and a more mid-range product for the decreasing option. Fairer Finance has given HSBC life insurance a customer experience rating in the low to mid 70s out of 100, based on claims performance, complaints handling and transparency. This places HSBC reasonably well within the market, though not at the very top of the tables.

Is HSBC life insurance good? Pros and cons

Whether HSBC life insurance is “good” for you will depend on what you are looking for and how their policies compare with alternatives. We can summarise some of the main advantages and drawbacks.

Writing HSBC life insurance in trust

Writing a life insurance policy in trust is often recommended as a way to help your loved ones receive the payout quickly and potentially reduce or avoid inheritance tax. When a policy is written in trust, you nominate trustees to oversee the money and beneficiaries to receive it. The payout is usually kept outside your estate for inheritance tax purposes and can be released without waiting for probate.

With HSBC, you can place a new or existing policy in trust using a life insurance trust form, which can be signed digitally or printed and posted. It is important to choose your trustees carefully and understand that, once in trust, you usually cannot change certain parts of the arrangement without trustee agreement.

What are the HSBC life insurance contact details?

There are a few ways to contact HSBC Life if you want to talk to them about your life insurance policy. To make things simpler for you, our experts have listed HSBC Life’s main contact details below.

HSBC life insurance phone number

Telephone – 0333 207 5563

Email – support@lifeprotectionplan.hsbc.co.uk

Opening time – Monday to Friday 9.00am – 5.30pm (excludes Bank Holidays)

Post:

Customer Services Centre,
HSBC Life (UK) Limited,
PO BOX 1053,
St Albans,
Hertfordshire,
AL1 9QG

Note: You can also log in to HSBC Access Life Insurance online, which allows you to manage your policy and check your policy documents.

How do I claim on HSBC life insurance?

If you need to claim on a HSBC life insurance policy, here is what you will need to do to start this process. Firstly, you will need to contact the HSBC claims team, and we have listed all the relevant contact details for you below.

Claims contact details

Telephone – 0333 745 6125

Email – life.claims@hsbc.com

Opening times – Monday to Friday 8.00am – 6.00pm (excludes Bank Holidays)

Post:

HSBC Life (UK) Limited,
PO Box 1053,
St Albans,
AL1 9QG

Can I complain about HSBC life insurance?

If you’re not happy with your HSBC insurance policy, you are entitled to make a complaint. HSBC will try their best to resolve your complaint within a reasonable time, and their website says that they aim to respond to an initial complaint within 5 working days.

When submitting your complaint, HSBC’s team will want to know your name, address, policy number, and preferred contact details. You should also provide as much information as you can about why you are complaining and how you would like HSBC to resolve any issues.

HSBC Life Complaints Contact Details (policy number ends /HS)

Telephone – 0333 207 5563

Email – support@lifeprotectionplan.hsbc.co.uk

Opening hours – Monday to Friday 9.00am to 5.00pm (excludes Bank Holidays)

Post:

Customer Services Centre,
HSBC Life (UK) Limited,
PO BOX 1053,
St Albans,
Hertfordshire,
AL1 9QG

HSBC Life Complaints Contact Details (bought directly from HSBC)

Telephone – 0345 745 6125

Opening hours – Monday to Friday 8.00am to 6.00pm (excludes Bank Holidays)

Post:

Customer Service Centre,
BX8 1HB

Note: If you bought your policy from HSBC directly, you could speak to a HSBC team member in your local branch to start the complaints process.

Making a complaint to the Financial Ombudsman Service

The Financial Ombudsman Service (FOS) is an impartial and free service for financial services customers in the UK. This service can be used to settle any disputes between life insurance companies and their customers in the United Kingdom. If they feel that you have suffered any financial loss as a result of your life insurance policy, then they may rule for compensation to be awarded.

Telephone – 0800 023 4567 (or 0300 123 9123)

Telephone (outside the UK) – 0207 964 0500

Email – complaint.info@financial-ombudsman.org.uk

Can I cancel my life insurance policy with HSBC?

There are various reasons you might choose to cancel your HSBC life insurance, and any reason is valid. If you cancel within 30 days of policy start, HSBC will refund the premiums you have already paid.

How to cancel HSBC life insurance

You can cancel your HSBC life insurance policy either online or over the phone. You can do this by:

• Logging into your HSBC Access account and cancelling your policy in the My Policy section
• Emailing support@lifeprotectionplan.hsbc.co.uk
• By calling 0333 207 5563 and speaking to a HSBC life insurance team member

HSBC opening times – Monday to Friday 9.00am – 5.30pm (excludes bank holidays). Accurately disclosed when the plan was taken out, HSBC aims to pay valid claims promptly. High payout statistics suggest that the vast majority of life insurance claims are accepted when these conditions are met.

HSBC life insurance pay out rates

In 2023, HSBC reports paying more than 97% of all insurance claims across its life and critical illness portfolio. This is slightly above the broader UK life insurance market, where average life insurance claims payout rates typically sit around 96%. These figures reinforce the point that life insurance is generally reliable, especially when customers answer application questions truthfully and keep their policies in good standing.

Most rejected claims across the industry arise from serious non-disclosure of medical history, misrepresentation of smoking status or claims made outside the policy terms. To maximise the likelihood of a successful claim, always disclose your full medical history, lifestyle and occupation accurately at the outset, and update your details if your insurer requires it.

Why compare HSBC with other life insurers?

Even if HSBC looks like a safe, convenient choice, it is rarely wise to buy life insurance purely because you already bank with a provider. Different insurers can price the same risk very differently, and some specialise in particular age bands, occupations or health conditions. Features such as indexation, waiver of premium, additional free benefits or enhanced critical illness definitions also vary.

Using a broker means you can compare policies from many of the UK’s leading life insurance providers in one place, at no cost for the comparison. A specialist adviser can listen to your needs, help you decide how much cover you need, and then source quotes from multiple insurers, including well-known brands. In many cases, customers find that an alternative insurer can offer similar or better cover for a lower premium than a single bank provider like HSBC, helping them protect their family without overpaying.

FAQs – How does HSBC life insurance work now?

Summary: Is HSBC life insurance any good?

HSBC life insurance offers straightforward term-based cover from a large, well-regulated financial institution, with strong payout rates and the option to add critical illness and income protection. The product range is deliberately simple, focusing on level and decreasing term policies that can be taken out on a single or joint basis and including useful added benefits such as terminal illness cover and accidental death benefits at no extra cost.

However, HSBC’s life insurance choice is narrower than that of some competitors, and customer service reviews are mixed when you look at the bank as a whole. People with medical conditions, higher health risks or more complex protection needs may find that other insurers offer more competitive prices or more flexible features. For UK customers looking for low-cost life insurance or wanting to keep premiums as low as possible, it usually pays to compare HSBC’s offering against the wider market.

This makes it easier to find a policy that suits your budget and circumstances without having to do all the research yourself. Taking a few minutes to compare could help you save money, secure more appropriate cover and give your loved ones greater financial peace of mind.

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