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Loan Repayment Protection Plan

Policy features

Premium Details

Insurance Cover

Eligibility

Major Exclusions

Major Conditions

Policy features:

Loan Repayment Protection is an insurance policy available when you take out a personal instalment loan or personal tax loan from HSBC, or redraw your personal instalment loan. In the case of a loan in joint names the protection is limited to the primary loan applicant only. This is how it works:
  • If you become involuntarily unemployed, we'll pay your monthly loan repayments in full up to HKD15,000 per month (for a maximum period of 6 months)
  • If an accident or illness prevents you from working, we'll pay your monthly loan repayments in full up to HKD15,000 per month (for a maximum period of 9 months)
  • Up to HKD400,000 of your outstanding loan balance will be repaid if you die as a result of an accident or illness during the loan period
  • Up to HKD400,000 of your outstanding loan balance will be repaid if you suffer a total permanent disability as a result of an accident during your loan period

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Premium Details

The premium for Loan Repayment Protection depends on the size and term of your loan. There are two payment options available:

  • The premium is advanced as a further loan (This option is available for new loan customer only) The following table illustrates the additional amount you pay as part of your monthly loan repayments when you choose to include Loan Repayment Protection. You'll see that the premium is very affordable when you spread the cost by paying monthly. You can do this by adding your premium to your approved loan amount.

Monthly premium amount (for every HKD1,000 personal instalment loan amount)
 
Repayment period (month)
Range of personal instalment loan amount (HKD)
5,000 - 14,999
15,000 - 49,999
50,000 - 199,999
200,000 - 499,999
500,000 or above
6
12.58
12.41
12.26
12.11
12.07
9
9.02
8.83
8.68
8.52
8.49
12
7.35
7.16
7.00
6.83
6.79
18
5.54
5.33
5.16
4.98
4.94
24
4.75
4.52
4.34
4.15
4.10
36
4.04
3.78
3.57
3.34
3.29
48
3.85
3.54
3.30
3.04
2.98

Monthly premium amount (for every HKD1,000 personal tax loan amount)

Repayment period (month)
Range of personal tax loan amount (HKD)
1,000 - 19,999
20,000 - 49,999
50,000 - 99,999
100,000 - 299,999
300,000 or above
6
12.23
11.98
11.93
11.92
11.90
9
8.65
8.39
8.34
8.32
8.30
12
6.96
6.96
6.63
6.62
6.59
  • The premium is deducted from the approved loan amount. Alternatively you can pay the premium for Loan Repayment Protection in full when you take out your loan. You can do this when you apply, by ticking the relevant option in the loan application to advise the Bank to deduct the payment from your approved loan amount.

Insurance Cover

Cover Product Features/Policy Benefits Limits
Life Cover
  • Repayment of the outstanding loan balance
  • One lump sum cash payment
  • Outstanding loan amount (up to maximum of HKD400,000)
Total Permanent Disability Cover
  • Due to accident
  • Repayment of the outstanding loan balance
  • One lump sum cash payment
  • Outstanding loan amount (up to a maximum of HKD400,000)
Disability Cover
  • Inability to work due to accidental injury or illness
  • Maximum HKD15,000 per month
  • 100% of monthly loan repayment amount
  • Maximum benefit period of 9 months
Unemployment Cover
  • Being out of work due to cessation of business or redundancy
  • 100% of monthly loan repayment amount
  • Maximum HKD15,000 per month
  • Maximum benefit period of 6 months

Eligibility:

Loan Repayment Protection is available when you take out a personal instalment loan or personal tax loan from HSBC, or redraw your personal instalment loan.

  • You must be aged 18 and under 60
  • You must be a resident of Hong Kong SAR
 

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Major Exclusions

Loan Repayment Protection provides a wide range of cover, though there are certain conditions and exclusions that are part of the policy.

You will not be covered for:

  • Any medical condition or illness that you know about at the start date of the loan, or for which you have received treatment or advice

You will not receive benefit for unemployment in the following circumstances:

  • If you are employed less than 18 hours a week or you are unable to claim severance benefit
  • If your employment ends within 60 days of the policy start date
  • If you are self-employed (other than professionals) or if you work for a relative
  • If you work as a construction worker, restaurant or fast food worker, or container truck driver

You will not receive any benefit for disability arising from the following:

  • Engaging in dangerous sporting activities such as bungee-jumping and hang-gliding
  • Engaging in high risk occupations in areas such as construction or involving work at heights

Major Conditions
  • To qualify for disability and unemployment cover, you must be unable to work for a period of 30 consecutive days. When you qualify for cover, your payment will be backdated to your first day of disability or unemployment.
  • If you cancel your policy before the expiry date you will be entitled to a refund of part of your premium provided you have not made a claim.

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The above information is intended as a general summary. Please refer to the policy wording for exact terms and conditions and details of the exclusions.

Loan Repayment Protection Plan is underwritten by HSBC Insurance (Asia) Limited which is authorised and regulated by the Commissioner of Insurance of the Hong Kong SAR. The Hongkong and Shanghai Banking Corporation Limited is an insurance agent authorised by HSBC Insurance (Asia) Limited.

Loan R epayment Protection Plan offered by HSBC Insurance (Asia) Limited is only available for subscription by residents of Hong Kong SAR.

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