HSBC Life’s Life Treasure (II) is a whole life insurance policy offering comprehensive critical illness coverage, flexible multiplier benefits, and strong accidental death protection. While it has high premiums and no retrenchment benefits, it excels in coverage depth and fund performance for long-term security.
Table of Contents
Uncover the full benefits of HSBC Life’s Life Treasure II and see how it fits into your financial plans. Just click here to learn more.
The policy is on the pricier side, with higher premiums compared to similar offerings in the market.
HSBC Life’s Life Treasure II has the lowest performing par fund as compared to all its competitors.
It offers comprehensive critical illness coverage, flexible multiplier benefits, and high accidental death coverage.
- Offers extensive critical illness coverage and high accidental death benefits.
- Covers 162 critical illness conditions and offers flexible multiplier options.
- More expensive than many alternatives with similar benefits.
- Lowest performing participating fund.
- Lacks financial support in case of job loss.
VERDICT:
HSBC Life’s Life Treasure II is a solid option for those prioritizing comprehensive critical illness coverage and long-term protection, thanks to its generous accidental death benefits.
However, its higher premiums and lack of retrenchment benefits might make it less appealing for those seeking value for money.
Also, it has the lowest performing participating fund, making it unattractive, especially since it’s one of the main selling points of a whole life plan.
Despite its higher costs, the policy’s extensive coverage and flexible multiplier options offer considerable protection, making it a suitable choice for those willing to pay more for comprehensive benefits.
What we like about the HSBC Life’s Life Treasure II
Critical Illness Coverage
One of the standout features I really like about this policy is its comprehensive critical illness (CI) coverage.
Covering a total of 162 conditions, the HSBC Life’s Life Treasure (II) is among the more generous policies in the market when it comes to safeguarding against CI.
What makes this coverage even more appealing is that it’s not just focused on the later stages of illness but also includes early and intermediate critical illnesses.
This layered approach means that even if the illness is caught in its early stages, there’s still coverage, providing that crucial safety net when it’s needed most.
- Total conditions covered: 162, covers early, intermediate, and advanced stages of illness
Having this level of coverage gives me peace of mind knowing that no matter how severe the illness, I’m protected.
It’s not just about critical illnesses being covered — it’s about the depth and flexibility of the protection.
Multiplier Benefit Rider
This rider gives me the flexibility to multiply the basic sum assured by 2, 3, 4, or 5 times, which is fantastic for bolstering my coverage.
The best part?
I can extend this multiplier benefit up until I’m 80 years old, which is one of the longest durations available in the industry.
Having this multiplier option means I can secure more coverage during critical phases of my life without having to pay an exponentially higher premium from the start.
- Multiplier options: 2x, 3x, 4x, 5x the sum assured
- Multiplier duration: Available up until age 80
What I like here is the flexibility to decide how much additional coverage I want and for how long.
Whether I want to increase the multiplier for a set number of years or go for a longer duration, this feature gives me the control to adjust it to my needs.
Lower Claim Criteria for Advanced Disability Payout
This policy requires meeting only 2 out of 6 Activities of Daily Living (ADL) to qualify for a payout in the event of severe disability.
Many other policies require 3 out of 6 ADLs, making HSBC Life’s Life Treasure (II) more favourable for policyholders facing advanced disability.
The ADLs include basic functions such as:
- Bathing
- Dressing
- Feeding
- Mobility
- Transferring (e.g., moving from bed to wheelchair)
- Toileting
This more lenient criterion is important because it increases the likelihood of receiving financial support when you need it most.
Accidental Death Coverage
HSBC Life’s Life Treasure (II) provides up to 10 times the sum assured in the event of accidental death, which is significantly higher than what many other policies offer.
This feature is particularly useful because accidents are unpredictable, and having such extensive coverage means my loved ones would be well-protected financially in the worst-case scenario.
This level of protection gives me a great deal of peace of mind, knowing that in the unfortunate event of an accident, the financial impact on my family would be mitigated significantly.
What we think the HSBC Life’s Life Treasure II could do better
Higher Premiums
One thing I’m not too fond of with the HSBC Life’s Life Treasure (II) policy is its higher premiums.
While the coverage and features are comprehensive, the cost might not be justifiable for everyone.
According to Dollar Bureau, the premiums are higher compared to other policies offering similar benefits, particularly when it comes to critical illness coverage.
This makes the policy less appealing for individuals looking for cost-effective options.
The higher premiums could also add up significantly over time, making it harder to balance this cost with other financial commitments.
- Higher premiums compared to competitors for similar coverage
- Cost may be prohibitive for those on a tighter budget
This is a key factor that makes me hesitate, as the long-term financial burden might outweigh the benefits, especially for those looking to stretch their dollars further.
No Retrenchment Benefits
Another downside is the lack of retrenchment benefits.
With the unpredictability of the job market, having retrenchment benefits in a policy can be a lifesaver, offering temporary premium waivers or financial support in case of job loss.
Unfortunately, HSBC Life’s Life Treasure (II) doesn’t include this feature, leaving policyholders vulnerable during tough financial times.
This missing feature is especially concerning in a landscape where job security is never guaranteed.
- No retrenchment benefits to help in case of job loss
- No premium waivers during periods of unemployment
In my view, not having this support makes the policy less robust, especially for those who may face employment uncertainties.
Poor Performing Participating Fund
A poorly performing fund could mean lower bonuses or benefits in the long run, especially when compared to other policies with stronger fund performance.
This is a major drawback, as part of the appeal of whole life insurance policies is their potential to generate returns over time.
- High expense ratios affecting returns on the participating fund
- Lower bonuses due to weaker performance in recent years
This underperformance in the participating fund diminishes the financial benefits that policyholders might expect, reducing its overall appeal as an investment vehicle.
Better alternatives to the HSBC Life’s Life Treasure II
NTUC Income Star Secure Pro
NTUC Income Star Secure Pro stands out for its comprehensive critical illness coverage, which is the highest among the alternatives, covering 172 conditions.
This far-reaching coverage gives policyholders peace of mind knowing that they are protected against an extensive list of illnesses, which is especially important in today’s unpredictable health environment.
Dollar Bureau highlights that NTUC Income’s breadth of coverage makes it one of the most extensive critical illness plans available, providing superior protection.
Another compelling reason to prefer NTUC Income Star Secure Pro is its lower premiums.
Dollar Bureau notes that despite its extensive coverage, the premiums are lower than HSBC Life’s Life Treasure (II).
This combination of extensive critical illness coverage with lower premiums makes NTUC Income Star Secure Pro a highly attractive option for those looking to maximize protection while minimizing cost.
The affordability, paired with such comprehensive coverage, makes this policy a more efficient choice for securing long-term protection.
Manulife LifeReady Plus II
Manulife LifeReady Plus II stands out for offering retrenchment benefits, which is a feature I find particularly valuable.
According to Dollar Bureau, this policy provides financial support in the event of job loss, something that HSBC Life’s Life Treasure (II) lacks.
These retrenchment benefits can offer a premium waiver during difficult times, ensuring that policyholders don’t have to worry about maintaining their coverage if they lose their income.
Given the uncertainties in the job market, having this safety net makes Manulife LifeReady Plus II a more reliable option for long-term financial security.
Another advantage of Manulife LifeReady Plus II is its premium payment flexibility.
Dollar Bureau highlights that this policy allows more customization in how premiums are paid, offering flexibility for policyholders who may want to adjust their payments according to their changing financial situation.
This tailored approach makes it easier for individuals to manage their coverage without feeling locked into a rigid payment structure, adding a layer of convenience that HSBC Life’s Life Treasure (II) doesn’t provide.
AIA Guaranteed Protect Plus (III)
AIA Guaranteed Protect Plus (III) excels with its higher special benefits coverage, particularly in areas like diabetic complications and osteoporosis.
Dollar Bureau emphasizes that this policy offers more comprehensive coverage for special conditions compared to HSBC Life’s Life Treasure (II).
This additional protection for specific medical issues ensures that policyholders are safeguarded against a wider range of potential health complications, making it a more robust choice for those who are concerned about these particular risks.
Furthermore, lower expense ratios are another significant reason why AIA Guaranteed Protect Plus (III) is a better alternative.
Dollar Bureau points out that AIA’s participating fund has lower expense ratios than HSBC’s, which means policyholders are more likely to see better performance and higher returns over time.
This feature enhances the policy’s value as an investment, making it not only a strong option for protection but also a more rewarding choice for those looking to benefit from long-term returns on their premiums.
Let Us Compare Policies For You
When considering whole life insurance plans, it’s important to pay attention to the participating fund performance.
This is key because you’re paying extra for that component compared to term life insurance, and it can significantly impact your long-term returns.
Since this is a whole life policy, the multiplier option also matters.
You need to think about how much death coverage you require and for how long.
As your liabilities (like mortgages or loans) tend to decrease as you get older, you want to make sure you have enough coverage when you’re younger and more vulnerable but not overpay as your responsibilities lighten.
If you’re using a whole life policy for Early Critical Illness (ECI) or Critical Illness (CI) coverage, you’ll want to carefully look at the number of conditions covered, the specific definitions of those conditions, and how much you’d receive in the event of a claim.
It’s crucial to know what riders are available too. Riders can provide extra coverage, and by choosing the right ones, you could potentially save a lot in the long run.
Of course, price is a big factor.
Whole life policies are generally more expensive than term policies, so you want to ensure that you’re paying for something you can comfortably afford over the years, while still getting the coverage you need.
Remember, a policy that’s perfect for one person’s goals might not be the best fit for you.
That’s why understanding what you’re purchasing on a deeper level is crucial.
Our partners have years of experience in the industry and are trained to help you navigate these complexities.
We offer free and non-obligatory comparison sessions, where we help you compare policies to ensure you’re getting the best deal for your current situation and future goals.
We can even help you obtain quotes so you can compare everything in one place.
Let us help you find the policy that’s right for you.