Select and Cover is a new flexible insurance product that offers up to seven switchable covers in one monthly subscription.
HSBC UK customers can choose a minimum of three and a maximum of seven of the following types of cover: Mobile Phone; Gadget; Home Emergency; Life; Excess Protection; Motor Breakdown, and Travel, from £19.50 per month.
If their needs or circumstances change, customers can add or remove one option during the year, as long as they maintain a minimum of three, and can change all their options once a year on the policy anniversary. Combining covers can reduce the aggregated cost, thereby saving customers money when compared to purchasing individual policies.
Select and Cover is a pay monthly service and customers can cancel at any time without penalty. Each policy covers the customer, their spouse, domestic or civil partner and their children. That is, children up to the age of 18 (or 23 if in full time education) and living at the policyholder’s address outside of term time.
Market research conducted by HSBC UK showed convenience and flexibility were the two main drivers for insurance customers and identified a strong desire for subscription type services instead of fixed contracts, HSBC says.
Select and Cover is available online to the six million HSBC UK customers who are registered for online banking. Pricing options are:
* Three Options: £19.50pm
* Four Options: £26.00pm
* Five Options: £32.50pm
* Six Options: £39.00pm
* Seven Options: £45.50pm
The Starter Life option pays a £15,000 lump sum payment in the event of the death of the customer or their partner and a £5,000 lump sum payment in the event of the death of a child. The maximum age is 50 at outset and cover lasts until the policy anniversary after reaching age 50.
Exclusions include suicide during the first 12 months, and death which occurs in the first 12 months as a result of a medical condition or related symptoms the deceased person knew about at the cover start date, whether the condition had been diagnosed or not. If a claim is made on the customer’s death, the policy ends automatically and no more premiums will be payable. Otherwise a maximum of two claims can be made within the period of cover for the death of a partner.