Insurance Premium Financing

HSBC HK
Wealth Financing
Insurance Premium Financing

To apply for Insurance Premium Financing, the Policy must be assigned to us by an Assignment of Life Insurance. Once you have agreed and signed the Assignment of Life Insurance, the rights under the Policy, including but not limited to your right to cash withdrawal, are transferred to us. As such, any changes or amendments to the Policy (including but not limited to cancel from inception, surrender, termination, application for loans, cash withdrawal and transfer of ownership under the Policy) will be subject to our approval.
Where the loan is still outstanding when the policy benefits are payable under the Policy, the benefits are used to repay the outstanding loan balance first, with the remaining amount, if any, paid to you or your beneficiary(ies). You or your beneficiary(ies) may not receive any money if there is no remaining amount. You should consider the impact on you or your beneficiaries who are likely to receive lower entitlements if you opt for Premium Financing.

For detailed risk disclosures, please kindly refer to the offering documents for further details including fees, charges and risk factors.

What is Insurance Premium Financing?

Insurance Premium Financing by HSBC offers you the flexibility to pay part of your new insurance premiums with a fixed term loan. With this, you can get the insurance coverage that matches your needs, while having liquid funds on hand.

This is available for specific life insurance plans underwritten by HSBC Life (International) Limited. For details, please contact your Relationship Manager or HSBC Premier Elite Director.

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Features and benefits

Extra liquidity on new insurance purchases

With the flexibility from Insurance Premium Financing loans available in HKD and USD, you may not have to face the prospect of needing to liquidate assets for fund payments.

Available for a wide range of insurance products

We have a number of universal life, endowment and whole-of-life insurance products, which are eligible for Insurance Premium Financing, to meet your various wealth goals and protection needs.

Competitive interest rates

Our low borrowing costs allow you to have more flexibility to grab the chance to possibly profit from interest differentials when you reallocate your funds for other purposes.

Flexible to meet changing needs

Our flexible 10-year term loan is here to help meet your liquidity needs. If circumstances change, you can easily terminate your Insurance Premium Financing loan with an early repayment anytime without any penalties.

How it works

You can take out an Insurance Premium Financing (PF) loan in HKD or USD depending on your preference. Please note that the Loan-To-Value (LTV) ratio and basis on which interest is charged are different for an HKD loan and a USD loan. Let's say you're interested in a life insurance policy with a total premium payment of USD744,000.

Please see the illustrative example below:
Item	HKD Loan	USD Loan
Total premium payment of the life insurance policy (policy currency is USD)	USD744,000	USD744,000
Guaranteed cash value of policy	USD622,500	USD622,500
Total PF loan amount¹	HKD3,641,625 (USD622,500 × 75% LTV ratio × 7.8 prevailing exchange rate²)	USD498,000 (USD622,500 × 80% LTV ratio)
Total premium to be paid by customer	USD277,125 (USD744,000 − USD466,875)	USD246,000 (USD744,000-USD498,000)

Please see the illustrative example below:
Item	Total premium payment of the life insurance policy (policy currency is USD)
HKD Loan	USD744,000
USD Loan	USD744,000

Item	Guaranteed cash value of policy
HKD Loan	USD622,500
USD Loan	USD622,500

Item	Total PF loan amount¹
HKD Loan	HKD3,641,625 (USD622,500 × 75% LTV ratio × 7.8 prevailing exchange rate²)
USD Loan	USD498,000 (USD622,500 × 80% LTV ratio)

Item	Total premium to be paid by customer
HKD Loan	USD277,125 (USD744,000 − USD466,875)
USD Loan	USD246,000 (USD744,000-USD498,000)

Interest rates³ and expense

HKD loan interest rate³: HKAB's 1-month HIBOR⁴ + 0.75% to 1-month HIBOR + 2%, minimum 0.75%
USD loan interest rate³: HSBC's USD best lending rate⁵ − 1.5%, minimum 0.75%
Interest expense⁶, ⁷: Please refer to the Key Facts Statement for an illustration. You can also use the Loan Interest Calculator on this page - just enter your expected loan amount, loan tenor and interest rate to see the estimated interest expense.

Contact your Relationship Manager or HSBC Premier Elite Director for more details.

Please note that we do not appoint any third parties to submit Insurance Premium Financing applications to us and will not process any application submitted by a third party.

Loan Interest Calculator

The loan interest calculator estimation is for reference only.

dpws-tools-calculator-creator

Please note the applicable loan calculator assumptions⁶.

Remarks:

The loan interest calculator estimation shown above is for reference only and does not represent the actual interest. The actual repayment liability depends on the actual terms of each borrowing arrangement.
HK dollar loan interest is calculated on the basis of actual number of days elapsed and 365-days in a year or 366-days in a leap year.
US dollar loan interest is calculated on the basis of actual number of days elapsed and 360-days per year.
The actual loan interest amount charged may differ, please refer to the relevant statement of the repayment account.
The loan effective interest rate (p.a.) for individual customers may vary and subject to the applicable terms of the facility including any promotional offer. Please refer to the relevant product information.
Loan calculator assumptions:
a. Loan interest is calculated by assuming the loan amount remains unchanged.
b. Loan interest is calculated by assuming interest charged is fully repaid each month.
c. Monthly interest is calculated by assuming 30 days in a month.
d. Annual interest is calculated by assuming 365 days in a year.

Reference Material:

You may find the relevant interest rate benchmark from the below links:

To borrow or not to borrow? Borrow only if you can repay!

Are you eligible?

To apply, you need to be :

aged 18-64
an HSBC Premier Elite / HSBC Premier customer

You are eligible for HSBC Premier Elite if you maintain a Total Relationship Balance (TRB) of at least HKD7.8 million with us in Hong Kong, and eligible for HSBC Premier if you maintain a TRB of at least HKD1 million with us in Hong Kong. (A Below Balance Fee of HKD380 per month will be applied if your TRB falls below HKD1 million.)

TRB includes:

Hong Kong dollar/ renminbi / foreign currency deposits
Market value of the following investments: local and overseas securities, Unit Trusts, bonds, certificates of deposit, equity linked investments, structured notes, Monthly Investment Plan (stocks/ Unit Trusts) and Wayfoong Statement Gold
Deposit amounts of Deposit Plus and Structured Investment Deposits
Utilised lending facilities (excluding mortgages and amounts outstanding on credit cards)
Life insurance with savings or investment component^*
HSBC MPF balances and HSBC ORSO Defined Contribution Scheme balances which are administered by The Hongkong and Shanghai Banking Corporation Limited
Minimum total relationship balance refers to the rolling average for the previous three months.

^*For life insurance with savings or investment component:

Investment-linked life insurance policies include the total cash value of the policies;
Other life insurance policies include the total cash value of the policies OR total premium paid less any annuity payments received (if applicable), whichever is higher.

To determine your overall TRB in sole capacity, the applicable TRB of all your personal sole account(s) held or registered with the same joint accountholder(s) under the same name(s) and identity number(s), held with the same joint accountholder(s) will be included in the calculation. There may be a time lag before the value of certain investment transactions (i.e. initial public offering subscriptions for securities, bonds, open-end funds and certificates of deposits) and life insurance policies will be included in the TRB due to the processing time required and therefore may affect the TRB in the Bank's record.

Need further information?

Need help? Consider our advisory services

Book an appointment

To help us better understand your needs, simply arrange an appointment with us.

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Call us

We'll answer any queries you might have through a phone call.

HSBC Premier Elite Dedicated Service Line: +852 2233 3033
HSBC Premier dedicated hotline: +852 2233 3322

Notes

The above example is for illustration purposes only. The maximum loan amount depends on the LTV ratio that applies to your policy and is subject to our credit underwriting review.
For the purpose of this illustration, it is assumed that the prevailing exchange rate for USD to HKD is 7.8. The exchange rate in actual operations may differ.
The interest rate is floating, subject to market fluctuations and daily re-fixing.
1-month HIBOR means the Hong Kong Interbank Offered Rate for the interest period of 1 month for Hong Kong Dollars quoted by The Hong Kong Association of Banks (HKAB) on such date. The latest 1-month HIBOR rate and other details of HIBOR rates are available on HKAB's website.
Our USD Best Lending Rate is the US Dollar Best Lending Rate quoted by us from time to time. Latest rate and other details of our USD Best Lending Rate are available on this lending rate page.
You are only required to pay interest during the loan tenor, but you must settle the outstanding loan balance at the end of the loan tenor, or else interest will continue to accrue daily at the default interest rate on the outstanding loan principal until the date of repayment. You are required to have sufficient funds in your repayment account to pay monthly interest and repay the loan principal. If any payment of monthly interest is overdue for 90 days, or the repayment of total outstanding loan balance is not paid within 60 days from expiry of the loan tenor, the policy will be surrendered to repay the outstanding loan balance, being loan principal, interest, fees and charges (if any).
Interest is charged on the actual number of days and calculated based on 360 days in a year for USD loans, and 365 days in a year (or 366 days in a leap year) for HKD loans.
This service is subject to customer insurance needs, details of customers' circumstances, affordability assessment, any other appropriate suitability assessment(s) and credit approval.
The loan is subject to the Insurance Premium Financing Terms and Conditions
To borrow or not to borrow? Borrow only if you can repay!

Important risk warning