Permanent life insurance details | HSBC

Build your wealth while protecting your family with Permanent Life Insurance

Your long-term financial goals may benefit when you build cash value in a permanent life insurance policy that can be used to accumulate wealth, help protect your current assets and simplify wealth transfer to your heirs.

Reliable Protection

Permanent life insurance (Whole life insurance, Variable life insurance, Universal life insurance, Single Premium life insurance) provides the security of coverage throughout your lifetime, and a death benefit provided by the issuing insurance company for your heirs.

Most policies offer valuable tax advantages:

• Loans against the accumulated cash value are tax-free in most situations.
• Death benefit proceeds are generally income-tax free and not subject to probate.

Options to suit your needs

Our experienced financial professionals¹ can offer personalized assistance to help you determine the insurance strategy to best meet your needs and goals.

Whole Life Insurance provides the security of fixed premiums and payout

Whole life insurance may allow you to build cash value inside the policy while safeguarding your family, should anything happen to you. A portion of your premium will be applied to the policy's cash value and grow at a minimum rate guaranteed by the issuing insurance company.

Whole life is an essential tool for long-term estate planning and supplemental income strategies. The earlier you buy whole life, typically the lower the premium. It's an excellent way to fund your long-term goals.

Variable Life Insurance offers protection and the flexibility of investment options

Variable life insurance provides permanent protection that builds cash value through scheduled premium payments, but offers a variety of asset allocation options. Variable life insurance features:

• Fixed premium payments
• Control over a separate account, in which you can allocate a portion of your premiums: you can choose from a variety of assets which offer different levels of risk and growth potential
• You may be guaranteed a minimum growth rate by the issuing insurance company
• Tax-deferred earnings and tax-free transfers within the separate account
• Greater growth (and risk) potential than whole life insurance

Universal Life Insurance can be customized to fit your changing needs

When you want to accumulate cash inside the policy and plan for your wealth transfer, universal life insurance can provide options to suit your changing financial situation with:

• Flexible protection
  Universal life insurance provides flexibility to choose the amount of protection best suited to your family.
• Flexible premium
  You control the amount and frequency of payments and have the option to make additional premium payments, subject to the policy agreement. Of course, depending upon policy performance and factors such as loans and withdrawals, the policy may require a minimum premium(s) to keep it in force.
• Earnings potential
  The issuing insurance company may guarantee a minimum growth rate on the cash value of the policy in some cases.

The flexible nature of universal life insurance means premiums can be altered over time, so you may be able to continue coverage even if you need to reduce your payments.

Single Premium Life Insurance for wealth transfer

You can choose to pay for a life insurance policy with a single premium: this can be an efficient method of transferring your assets to your family or charitable organizations. With one lump sum payment, you will have a paid-up death benefit provided by the issuing insurance company that will allow you to pre-fund specific legacy goals with confidence.

Personalized guidance

Our trained financial professionals can conduct a thorough needs analysis to help you determine what type of life insurance is right for you. They will then help you choose from a wide range of carefully selected products, from top-rated providers. An HSBC financial professional can help you:

• Assess your current situation and insurance needs
• Examine your future goals
• Help you create an action plan and estate transfer strategy
• Implement your plan with products that best meet your needs and goals