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HSBC Life Protect Advantage VS AIA Guaranteed Protect Plus (ii) (Wholelife Plan For Families)

HSBC Life Protect Advantage is one of the newest wholelife plan offer to the market.

Premium options are 10,15,20,25 year duration. From discussions with the HSBC team, I understand that they have priced it competitively for infant to young children ages.

In this post, you'd see some of the key benefits from this plan. Brochure here


I'd also compare it's plan benefits with the AIA Guaranteed Protect Plus (ii) (AIA GPP) plan and why some of my private clients use it.

This plan can be bundled with a pregnancy plan under AIA mum2baby.

If you'd like details, check this post AIA Mum2baby review.

Premium options are 12,20 year duration. Brochure here

Similarities between HSBC Life Protect Advantage & AIA Guaranteed Protect Plus(ii)

Wholelife plan means the returns are delivered by the insurer's participating fund (PAR FUND). There are guaranteed and non-guaranteed portions to returns.


Both plans offer riders for critical illness and early critical illness. Conditions are largely similar and very comprehensive.


Both plans offer multiplier rider to the plan which can increase the protection level for you significantly 

HSBC has multiplier rider of 2x,3x,4x,5x.

For AIA GPP, it is at 2x,3x,5x.

Differences between HSBC Life Protect Advantage & AIA Guaranteed Protect Plus(ii)

AIA Guaranteed Protect Plus (ii) has a smaller starting amount of $20,000 sum assured. Minimum sum assured for HSBC Life Protect Advantage is at $50,000.

That means for a coverage of $100,000, with the AIA Guaranteed Protect Plus (ii) 5x multiplier, it would be a lower starting premium.


AIA Guaranteed Protect Plus (ii) multiplier options are till age65 or age75 while HSBC Life Protect Advantage is till age70 only.

We'd next deep dive into the plan structures and what it can cover for you.

HSBC Life Protect Advantage: Unique Life Extender Multiplier

The Life Extender Multiplier is for extra coverage after the multiplier rider expires at age70.

You can opt for this option every 5th policy anniversary or during specific life stages before age 60. 

The maximum (death) coverage of the Life Extender Multiplier will be capped at the original Minimum Protection Cover determined at Policy inception


The option is only for standard life but the premium rates are locked in as of now.

HSBC Life Protect Advantage: Unique Guaranteed Insurability Option

If you have the HSBC Life Protect Advantage, it gives you option to buy any life insurance plan offered by them in future without having to undergo any medical underwriting.

This option allows you to cover for Critical Illnesses (CI) also which is unique because most other insurer's option is for death only.

The conditions are as follows:

- By Age 60 of life assured

- Can be for multiple events

- Up to 100% of sum assured or $300,000 whichever lower

Comparing against AIA Guaranteed Protect Plus (ii) Option to Purchase Additional Insurance (OPAI) Benefit

This OPAI benefit gives you the option to purchase (before age55) a new whole life or endowment policy up to the Insured Amount, or S$100,000, whichever is lower.  

Also without evidence of insurability, on the life of the Insured.

The OPAI benefit must be exercised within 90 days from any of the following events:

  1. (a)  18th birthday of the Insured;

  2. (b)  marriage of the Insured;

  3. (c)  birth of the Insured’s child;

  4. (d)  adoption of a child through legal means by the Insured; or

  5. (e)  death of the Insured’s spouse.

HSBC Life Protect Advantage: Accelerated Benign Tumor Benefit (if applicable)

If you have pre-existing condition on breast, prostate and uterus because most other insurers will likely exclude.Accelerated Benign Tumor Benefit can offer you coverage without any exclusions or loading. 

HSBC Life will cover the progressive conditions and pay 20% of CI multiplier benefit capped at S$50,000.

*Underwriting results may differ on case-by-case basis.

AIA Guaranteed Protect Plus (child critical cover and child special conditions cover)

These 2 are unique and covers for children specifically.

The first is the Child Critical cover with 16 conditions.

If you are buying the policy for you child with early critical illness rider, the child critical illness rider will be added.

If you are transferring policy to you child from AIA Mum2Baby and the Policy includes Early Critical Protector Life (II) (ECPL (II)), the Child Critical Cover will also be automatically added to the Policy.

The second is the Child Special Conditions cover with 9 conditions.

It is listed separately because claims will NOT reduce critical illness coverage.

The following conditions covered are useful, especially ADHD (Note: 1year waiting period)

Coverage amounts are 20% of prevailing Insured Amount under ECPL(II)-Accum supplementary benefit, less any amount owing to AIA.

Amounts are capped at $25,000 each and up to 5 claims. 

Conclusions

Both plans are highly competitive and amongst top recommendations to private clients.

Wholelife plan coverage especially for a child can be seen as an asset that provides permanent coverage that you have prepaid.

Many parents are covering Early Critical illnesses for children in excess of $200,000 and that's where the HSBC Life Protect Advantage really comes in.

Personally I used the AIA Mum2Baby and transferring the wholelife plan coverage to get child critical cover and child special conditions cover.

If you are keen for a personalised comparison, look for a qualified adviser or contact us below.

Last updated on March 26th, 2020 at 03:34 pm

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://www.theastuteparent.com/josh-tan Practising financial planner with Promiseland Independent Pte Ltd. EXPERIENCE: More than 13years. Josh Tan is a young parent, speaker, author and founder of TheAstuteParent.

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