Home Life and Family Personal Insurance HSBC Launches SecureIncome Savings Plans

HSBC Launches SecureIncome Savings Plans

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HSBC has just introduced the SecureIncome savings plans with "guaranteed" returns. Are these just another run-of-the-mill annuity or insurance savings plans?

The SecureIncome plans are akin to a monthly premium saving and insurance scheme, as opposed to Aviva's SecurePlus Plan, which is a single-premium plan.

Basic features:

  • There are two versions, the "SecureIncome 10" and the "SecureIncome 55", which have accumulation terms of 10 years and up to age 55, respectively
  • The premium term (during which one would need to make monthly payments) is 6 years for "SecureIncome 10" and up to age 50 for "SecureIncome 55"
  • In SecureIncome 10 and 55, there is a further accumulation term (during which you would make and receive no payments) of 4 and 5 years respectively.
  • During the income term which lasts 10 years, you can opt to receive monthly incomes or to receive a lump sum at the end of the term
  • On the event of death or terminal illness during the accumulation term. the insure will be entitled to a payout which (according to HSBC) will be "more than the premiums paid"


The scheme yields 1 to 1.5% annually, depending on whether one chooses "SecureIncome 10" or "SecureIncome 55".


The scheme is guaranteed by HSBC Insurance.

How it compares:

The SecureIncome plans have a long tenure (20 years for the "SecureIncome 10") compared to Aviva's SecurePlus Plan and yet have a similar or lower yield than the latter.


The SecureIncome plans have very unattractive yields and there is probably no good reason to buy into such plans. And yes, each of these products is just another run-of-the-mill insurance savings plans, albeit a most uncompelling one.

Last Updated ( Monday, 23 August 2010 14:55 )  


0 #1 2010-11-08 10:05
Thanks for an honest review.
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