Compare HSBC Life Insurance Quotes Against The Market

As one of the world's largest financial institutions, HSBC has been providing life insurance in the UK since 1988 through HSBC Life (UK) Limited. Unlike some boutique insurers, HSBC focuses on efficiency; offering competitive, easy-to-understand term insurance policies that are often among the most affordable in the market for standard applicants.

Important definition: In 2025 HSBC sold their protection arm to Chesnara, which they now trade under. All existing HSBC protection policies will see their policies transferred to Chesnara automatically with no changes other than the name. 

At a Glance: HSBC Life (Chesnara)

• Financial Strength: AA- (Stable) rating for HSBC UK Bank plc

• Payout Philosophy: Consistently high payout rates, often exceeding 97% for life claims

• Unique Selling Point: NHS Waiting List triggers for critical illness, paying out before treatment begins

• Best For: Existing HSBC customers, mortgage holders, and those seeking reliable, low-cost term protection

Types of Life Insurance Offered

HSBC specialises in Term Life Insurance. They do not currently offer "Whole of Life" or "Over 50s" guaranteed-acceptance plans, focusing instead on fixed-term protection

1. Level Term Life Insurance

Designed to provide a fixed lump sum if you die during the policy term.

• Consistency: Your premiums and the potential payout stay exactly the same throughout the years

• Term Length: Policies can last between 5 and 50 years (but must end by your 80th birthday)

• Suitability: Ideal for family protection or covering interest-only mortgages

2. Decreasing Term Life Insurance

Often called Mortgage Protection, the payout amount reduces over time, roughly in line with a standard repayment mortgage.

• Cost-Effective: Because the risk to the insurer decreases over time, this is typically the most affordable type of cover

• Lump Sum: Designed to clear the remaining balance of a mortgage so the family can stay in their home

3. Critical Illness Cover (Core & Plus)

HSBC has significantly revamped its Critical Illness offering to address modern NHS challenges.

• NHS Waiting List Protection: A market-leading feature where HSBC pays out if you are added to an NHS waiting list for a covered surgery (for 38 different conditions), rather than making you wait for the surgery itself

• Enhanced Payouts: On the "Plus" plan, nine conditions (including Motor Neurone Disease and Parkinson's) qualify for double the sum insured (up to £200,000) if diagnosed before age 60

• Inclusivity: They are one of the few insurers to offer critical illness cover for well-managed Type 2 diabetics via a digital underwriting process

Key Features and Additional Benefits

• Accidental Death Benefit: Included for free, providing immediate cover while your application is being processed (for up to 90 days)

• Terminal Illness Benefit: Automatically included at no extra cost. It pays out the full sum assured if you are diagnosed with a terminal illness and have less than 12 months to live

• Square Health Access: Policyholders get access to the "Digital Health Services" app, which includes 24/7 remote GP appointments, second medical opinions, and mental health support

• Life Change Benefit: Allows you to increase your cover amount without further medical questions following a major life event, such as getting married, having a child, or increasing your mortgage

Pros and Cons

The Pros

• Competitive Pricing: Frequently ranks in the top three cheapest providers for standard term insurance

• High Payout Rates: Reported a 97.5% payout rate for life insurance and over 94% for critical illness in recent years

• Innovative CI Triggers: The NHS waiting list trigger is a significant advantage given current healthcare delays

• Digital-First Underwriting: Fast, efficient application process, especially for those with common conditions like Type 2 diabetes

The Cons

• Limited Product Scope: Only offers term insurance; no Whole of Life or dedicated Over 50s plans

• Banking Requirements: While not strictly mandatory for all channels, many of their best rates and online applications are geared toward existing HSBC banking customers

• No Increasing Cover: Currently lacks an automatic inflation-linked (increasing) cover option on many standard plans

How to get a HSBC (Chesnara) Life Insurance Quote

HSBC Life, now offered through Chesnara, offers a powerful combination of global stability and modern, practical features. However, their products are most effective when correctly integrated into a broader financial plan.

Our team of independent life insurance advisers can help you determine if this is the right fit for you, but we also have acces to the whole of the market. This means we can compare other protection options for you, to ensure you're policy perfectly aligns with your mortgage lender’s requirements and your personal goals.

Get started for a Free, No-Obligation Quote and to see how HSBC LIFE (Chesnara) rates compare to the rest of the market today