Goal Access Universal Life Plan (Education)¹

What’s included?

Grow your savings

With each premium, we deduct a sum to cover policy charges and the rest is put into your policy account as Account Value. This amount will earn interest³ – credited daily – at the prevailing general crediting interest rate⁴. This rate varies and can be 0%, but is guaranteed to be at least 2% p.a. for the first 8 years of your policy.

Loyalty bonus

To increase the value of your savings, we offer a loyalty bonus. This is credited to your account when the policy matures. The bonus amount is equivalent to a percentage of your average account value over the preceding 60 months before the policy maturity.

Life cover for your child⁷

This plan pays a lump sum if your child passes away or is diagnosed with a terminal illness during the policy term. You’ll be paid the higher of the following, less any outstanding charges:

• Your account value; or
• The sum insured, minus any money withdrawn from your account from 12 months preceding the death to the claim approval date

The Account Value is determined on the date of the written notification of the life insured’s death being received by the Company. Positive Account Value is required to maintain your policy in force.

Adaptable cover

If needs change, you can adjust the amount insured. If you paid for your plan with a lump sum, you can change your child’s cover amount after the first policy anniversary. If you paid with regular premiums, you can adjust your cover once your premium payment period ends. Reducing cover means you may need to pay a surrender charge.

Note:

Increasing the sum insured is subject to (i) underwriting; and (ii) increase in the Policy Expense Charge and Insurance Charge. For details, please refer to “Policy Expense Charge” and “Insurance Charge” under the section “Details of Charges” in the product brochure.

Reducing the sum insured may incur Surrender Charge. For details, please refer to “Surrender charge” under the section “Details of Charges” in the product brochure.

Flexible premiums payment

You can choose the premium payment option that works for you. Pay monthly or annually for 5 years, or choose to pay in a single lump sum. The total amount you need to pay is fixed at the beginning of the policy so there are no surprises.

Boost your returns with unscheduled premiums

When you have extra funds, you can choose to boost your account value by paying in unscheduled premium⁵. The Unscheduled Premium you pay will be allocated to the Account Value after deduction of Policy Premium Charge. Acceptance of unscheduled premiums is at HSBC’s discretion and minimum transaction amounts apply.

Cash withdrawals

You can cover unexpected expenses like school trips or music lessons by withdrawing money from your policy account. Withdrawals are subject to a Surrender Charge applicable in the first 8 policy years ranging from 1% to 55% depending on the policy year and premium payment period. Withdrawals also are subject to a minimum amount of USD625 per withdrawal and a minimum Account Value balance of USD2,500 after withdrawal. For details, please refer to “Surrender charge” under the section “Details of Charges” in the product brochure.

Withdrawals will reduce the account value which may reduce the death benefit and increase the chance of policy lapses.

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

See more about our policy crediting interest rates. 

Am I eligible?

Goal Access Universal Life Plan (Education) is generally available to anyone aged¹⁴ 1-10. The plan is subject to the relevant requirements on nationality and/or addresses of the policyholder and/or life insured as determined by the Company from time to time.

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions. 

More help when you need it

When life surprises you, additional benefits included in this policy can offer you more support.

Continued protection⁹

When the policy matures, you can buy new life cover for your child without underwriting. To qualify, you must apply for a whole life insurance plan or endowment insurance plan within 30 days after the maturity of your current policy.

Payor’s benefit¹⁰

If you as the policy payor die before age 65¹⁴ or become disabled for 183 days, we will cover the policy’s future outstanding Planned Premiums¹² on your behalf until you are fully recovered or the end of the policy premium payment period (whichever comes first).

Terminal illness benefit⁸

If your child is diagnosed with a terminal illness⁸ and likely to die within a year from the date of notification, we will pay out the life cover benefit in advance to help you cope with your changing financial situation.

Please refer to the respective product brochure for detailed product features and product risks,and the policy provisions for the detailed terms and conditions.

Policy Crediting Interest Rates (for Universal Life insurance products)

Universal Life insurance products

Universal Life insurance products are long term insurance plans offering a high level of protection with competitive features and flexibility for policyholders' multi-generational planning needs and other insurance needs. For details of the product features and key risks of Universal Life insurance products, please refer to the relevant product materials and policy provisions or contact your relationship manager or insurance consultant.

The benefits provided by Universal Life insurance products are impacted by the crediting interest rates as well as applicable charges. The General Crediting Interest Rate is a floating rate determined by the Company, subject to a guaranteed minimum floor as stipulated on policy provisions.

Philosophy in deciding the General Crediting Interest Rate

The applicable General Crediting Interest Rates vary depending on the policy currency and product series. Such rates are regularly reviewed by the Company at its discretion. The Company will inform policyholders concerned for any subsequent change of the General Crediting Interest Rates for their policies.

When determining the General Crediting Interest Rate, which applies to each Universal Life insurance policy, the Company considers the investment returns on the underlying assets supporting the policies, as well as other factors, including but not limited to: the outlook of the long term future investment returns, the claims and surrender experience, and the expenses. If the investment returns over the long term are better than expected, then the General Crediting Interest Rate would increase and if the investment returns are worse than expected, then the General Crediting Interest Rate would reduce.

The investment returns on Universal Life underlying portfolios include interest earnings as well as losses or gains realized upon the disposal of assets or asset impairments. The claims include the cost of providing the death benefit and other insured benefits under Universal Life insurance policies. The surrenders include total and partial surrenders, and their corresponding impact on investments. The investment returns on Universal Life underlying portfolios are not guaranteed.

In order to ensure that discretion exercised when defining the crediting interest rates is fair to all policyholders, and that any conflicting interests of policyholders with other policyholders and/or shareholders have been addressed having due regard to the fair treatment of policyholders, the Company established a dedicated committee providing independent advice on the management of the universal life business.

Investment philosophy for Universal Life Underlying Portfolios

The Company maintains a prudent approach to investing for the Universal Life underlying portfolios, with the primary goal being the delivery of long term value to policyholders.

Each portfolio is invested in Corporate and Government bonds under pre-determined diversification and rating objectives. The current long term investment strategy is to invest in diversified long term investment grade bonds rated BBB- or above. Unrated bonds may also be considered if they fit the Company's risk appetite profile. However, the Universal Life underlying portfolios are conservatively positioned to limit the exposure to unrated bonds. The bonds are held by the Company to maturity in order to match its long term liabilities. Subject to our investment policy, derivatives may be utilized to manage the investment risk exposure, for matching between assets and liabilities and for efficient portfolio management.

For the historical crediting interest rates of the Universal Life insurance products of the Company, that had new policies issued in the previous 5 years, please refer to this document [PDF, 140KB].