HSBC Life Insurance Explained for UK Policyholders

HSBC life insurance is no longer open to new protection customers in the UK: HSBC Life (UK) Limited was renamed Chesnara Life (UK) Limited and closed to new protection business. If you already hold a policy, your cover continues on its existing terms and is now administered under the Chesnara name, so any letters or emails you receive reflect that change rather than a change to your benefits.

For anyone searching for a new HSBC policy, that means the route is different from a few years ago. Understanding how term life insurance works, what critical illness cover adds and what drives the cost will help you weigh your options and compare like-for-like. Free Price Compare helps UK households review protection cover, and life insurance quotes are arranged through our protection partner LifeSearch.

Last updated: November 2026

Written by the Free Price Compare editorial team | Reviewed November 2026

What has happened to HSBC life insurance?

HSBC Life (UK) Limited has been renamed Chesnara Life (UK) Limited and is closed to new protection business, so you cannot currently buy a new HSBC-branded life insurance policy in the UK. Existing policyholders keep their cover on the same terms, and the policy is administered under the Chesnara name following the transfer. If you hold a policy, you should have received a letter or email confirming the change.

A rebrand and transfer of this kind does not reduce your protection. The sum assured, premium basis, policy term and any critical illness benefit set out in your original documents remain in place. Firms must treat customers fairly through such transfers, and the business is still regulated by the Financial Conduct Authority (FCA).

Because no new HSBC policy is being sold, comparing current providers is the practical starting point if you want fresh cover. You can review what life insurance is and how it works before you look at quotes.

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What does an HSBC life insurance policy cover?

An HSBC life insurance policy, like most UK protection cover, pays a cash sum to your beneficiaries if you die during the policy term. Older HSBC and legacy plans typically fell into a few types: level term life insurance (a fixed payout for a set period), decreasing term (where the payout falls broadly in line with a repayment mortgage), and some policies bundled critical illness cover.

Critical illness cover is an add-on that pays out if you are diagnosed with a specified serious condition listed in the policy, such as certain cancers, a heart attack or a stroke that meets the policy definition. It is separate from life cover and usually costs extra. The exact conditions covered depend entirely on your policy wording, so checking your documents matters.

Some HSBC mortgage customers held combined life and critical illness plans sold alongside their loan. These are protection products, not payment protection insurance (PPI), and are a normal way to cover a mortgage balance. If you are unsure which type you hold, your policy schedule will name the cover and the sum assured.

• Level term life insurance keeps the payout the same throughout the term.
• Decreasing term cover reduces over time, often used alongside a repayment mortgage.
• Critical illness cover pays out on diagnosis of a defined serious illness.
• Term policies usually have no cash-in value if they end without a claim.

How much does life insurance cost per month?

Lloyds Bank advertises life insurance premiums from £5 a month, although this is a headline starting price rather than a guaranteed quote and prices are subject to change. Lloyds states that 6% of its customers paid £5 a month for online single level life cover bought during 2024 (price excludes critical illness and depends on underwriting). Barclays and Nationwide advertise cover from around £6 a month, and Nationwide says most of its online customers pay between £6 and £20 a month.

Price rises with age because risk increases. Life insurance premiums and policy terms vary by age and personal circumstances, so these figures should be treated as estimated rather than HSBC prices. These figures are indicative of market pricing, not HSBC prices.

According to MoneyHelper, your premium depends on age, health, lifestyle, smoking status, family medical history, policy length and occupation. Because prices generally increase with age, replacing an older policy can cost more than keeping it. You can compare current life insurance costs and tips for 2026 before deciding.

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Do I have to stay an HSBC banking customer?

You do not have to keep an HSBC current account to hold a legacy HSBC life insurance policy. Life cover is a standalone contract between you and the insurer, so it continues regardless of where you bank. Changing your HSBC account, switching banks or closing a current account does not cancel a separate protection policy.

There is one important exception tied to mortgages. Some lenders ask borrowers to hold life cover as a condition of the loan; mortgage life insurance is one way borrowers cover the outstanding balance, though it is not a legal requirement. If life cover was a condition of your HSBC mortgage, check your original mortgage offer before cancelling any policy, because letting it lapse could breach the loan terms.

For wider context on cover linked to a home loan, read our explainer on mortgage payment protection insurance and how it differs from life cover.

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Is HSBC life insurance any good for new cover?

HSBC life insurance is not available for new cover, so the comparison you can make is between other current UK insurers rather than between HSBC and its rivals. For existing policyholders, the quality of a legacy HSBC plan depends on its specific features: the sum assured, whether critical illness is included, the term remaining and any extras such as a waiver of premium clause.

When weighing any policy, the things that matter most are the cover amount, the term length, the exclusions and how claims are handled. UK life insurers pay out the large majority of valid protection claims, and complaints about declined claims can be escalated free of charge to the Financial Ombudsman Service if you are unhappy with an insurer’s decision. Policies from FCA-regulated insurers are also covered by the Financial Services Compensation Scheme if the insurer fails.

If you are reviewing an older policy you feel is poor value, compare the cost and benefits of your current plan against fresh quotes before cancelling anything. Cancelling first can leave you unprotected and facing higher prices because premiums rise with age.

What should you weigh when choosing life cover?

Choosing life cover comes down to matching the payout and term to what you want to protect, then comparing prices across several insurers for that same cover. The main decisions are the cover amount (the sum assured), the policy length, whether to add critical illness cover, and whether you want a level or decreasing payout.

• Decide what you are protecting, such as a mortgage, income or family costs.
• Compare level term, where the payout stays the same, against decreasing term.
• Consider whether critical illness cover is worth the extra cost for your situation.
• Check exclusions, waiting periods and how long the policy will run.
• Compare like-for-like quotes before you commit, because premiums vary by insurer.

Being honest about your health, smoking status and family history keeps your cover valid, because non-disclosure can lead to a claim being declined. Many people also compare life and critical illness cover together, or look at income protection insurance as a separate way to protect earnings. For those wanting cover later in life, over-50s level term options work differently from standard term plans.

Compare life and critical illness cover

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Information correct as of 8 November 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).