Life Insurance

Credit Life Insurance

You’ve already decided to take out an HSBC Personal Instalment Loan to make the most of life’s opportunities and achieve your goals faster; but who will make the repayments on your loan if something happens to you? Nobody wants to burden their loved ones with their financial obligations in the event of the unexpected.

Credit Life Insurance can help ensure you don’t miss out on the lifestyle you’ve always dreamed of while enjoying complete peace of mind. Credit Life Insurance provides protection for your loans, and therefore protection for your loved ones, with affordable premiums.

Insurance benefits

In the event of death or Total Permanent Disability (TPD), Bao Viet Life shall pay the Insured Loan Balance as a lump sum to HSBC.

Product benefits

Comprehensive insurance protection for the length of the the loan tenor
Simple insurance application procedure
Competitive premium
No medical check-up required
A convenient bundled loan product and insurance product package

Premium payment method

Annual premium
Convenient payment method: bank transfer or standing instruction

Premium

Premium = Principal Outstanding Balance x Premium rate

Narrative:

Principal Outstanding Balance: the outstanding loan balance, excluding accumulated interest.
Premium rate: 0.33% per year

Example

Ms Nguyen Thi A takes out a Personal Instalment Loan for home improvements:

Loan amount: VND60,000,000
Loan tenor: 12 months
Interest rate: 23% p.a.
Disbursement date: 8/3/2011
Date of first instalment payment: 8/4/2011

She applies for Credit Life Insurance with an insurance premium of VND 198,000.
The table below illustrates her payment schedule over the course of one year:

Date of payment		Outstanding balance of original principal	Monthly principal payment	Monthly interest amount	Insurance premium
08/03/2011	0	60,000,000			198,000
08/04/2011	1	55,505,421	4,494,579	1,150,000	0
08/05/2011	2	50,924,695	4,580,725	1,063,854	0
08/06/2011	3	46,256,173	4,668,523	976,057	0
08/07/2011	4	41,498,170	4,758,003	886,577	0
08/08/2011	5	36,648,972	4,849,198	795,382	0
08/09/2011	6	31,706,832	4,942,141	702,439	0
08/10/2011	7	26,669,967	5,036,865	607,714	0
08/11/2011	8	21,536,562	5,133,405	511,174	0
08/12/2011	9	16,304,767	5,231,795	412,784	0
08/01/2012	10	10,972,695	5,332,071	312,508	0
08/02/2012	11	5,538,426	5,434,269	210,310	0
08/03/2012	12	0	5,538,426	106,153	0
Total			60,000,000	7,734,951	198,000

Assuming that the Insured dies or suffers from TPD on 15 June 2011, Bao Viet Life shall pay the outstanding balance on her loan, equal to VND 46,463,000, to HSBC on her behalf. This includes the outstanding balance of the original principal VND 46,256,173 and the interest accumulated over seven days (VND 206,867).

Application criteria

Personal Instalment Loan holders who are Vietnamese citizens, aged from 18 to 60

For more information, please call (84 8) 37 247 247

Important notes

Credit Life Insurance is underwritten by BaoViet Life, 01 Dao Duy Anh Street, Hanoi, Vietnam. It is not an obligation of or guaranteed by HSBC Bank (Vietnam) Ltd. The information of this product may be amended by BaoViet Life from time to time and HSBC Bank (Vietnam) Ltd. shall not be responsible for such amendment.

This webpage contains only general information. The specific terms, exclusions and conditions applicable to this insurance are described in the Policy which will only be issued upon acceptance of the Proposal Form. A person interested in this product should consider whether the product is suitable before making a commitment to purchase the product.

BaoViet Life's authorised agents or distributors, including HSBC Bank (Vietnam) Ltd. (together "the Agents") are neither the underwriter nor broker for the customers. To the fullest extent permissible pursuant to applicable law, the Agents make no warranties or representation as to the accuracy, correctness, reliability or otherwise of the content of this webpage. Under no circumstances, including, but not limited to negligence, the Agents or any party involved in creating, producing or delivering the webpage shall not be liable to you for any direct, incidental, consequential, indirect, or punitive damages that result from the use of, or the liability to use, the information in this webpage, even if the Agents have been advised of the possibility of such damages.

The Agents are not suppliers of the products and shall not accept liability in relation thereto.

Issued by HSBC Bank (Vietnam) Ltd.