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HSBC says 20% could save 3k with PTA

HSBC has moved into pension term assurance and says at least 20 per cent of its existing standard policyholders could benefit by switching over.

It is the first bank to launch into this sector and will initially offer products on level and decreasing term but only on a single-life plan basis. The product will offer free terminal-illness cover, accidental death benefit and interim life cover as standard.

HSBC has included a mortgage guarantee on its MTR policy, which it says differentiates its PTA product from others in the market.

On a valid claim, it will pay the higher of the sum assured or the mortgage balance. This feature is available on any HSBC mortgage protection product taken out with an HSBC mortgage, including the MTR policy.

Head of life and pensions Dennis Smith says the bank is aiming at new and existing customers and is contacting all existing policyholders of level and decreasing term insurance advising them of the benefits of both products. It estimates that 20 per cent of its customers could benefit from switching.

Smith says: “Our customers’ needs are at the heart of our business. We have already identified that at least one in five of our existing policyholders could benefit from switching and enjoy savings of at least 5 off their monthly premiums.

“Over half of these customers could save more than 10 a month, equating to a saving of 3,000 during the term of their policy.”

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