Advice needed: Life Insurance Cover for (HSBC Professional Studies Loan)

[Whiz_Fiz]

Hi all,

I'm about to apply for the HSBC Prof. Studies Loan (PSL) but just read their new guidelines and was horrified to find they charge you an admission fee and now also require life insurance (!) I don't have a clue where to start with looking for life insurance cover - basically I'm stumped!!!!
So......
Does anyone have any experience of taking out life insurance? and
Can anyone recommend a cheap policy for me to take out or where I can compare several companies.

Also I'd like to know if the BMJ offer life insurance for medical students and if anyone has had any experience/could tell me rates, etc.

If all else fails I suppose I could go for HSBC's life insurance cover for convenience though I don't know anything about this and going by their recent revisions to charges for PSL, it is likely to be a rip off. So I'd like to avoid taking their policy out if I can help it.

Any help on this would be much appreciated!

Thanks

Whiz_Fiz

[jonesy]

Hi Whiz_fiz we have been debating HSBC on another thread!
http://www.medschoolguide.co.uk/foru...ad.php?t=15473
I found it outrageous that they now ask for life insurance and arrangement fees etc..
Anyway, I actually got a quote from Norwich Union for life insurance and they quoted me £5 a month for cover of £27000. You can also get critical illness cover for an additional £4 a month, which is not necessary in my view and not stipulated by the bank (if you ask they will recommend it but it isn't needed for the loan). I think £5 is pretty standard for all providers but you can look online at all the major brokers......direct line, Norwich union, etc..

i'm not sure if the BMA insure students, sorry.

hth a little

Michelle
I had better luck with barclays, who don't require such additional clauses.

[bloemen]

A friend of mine just transfered her loan to natwest. She found that

a) they offered more loan
b) lower interest rate or the option of going for a fixed rate
c) they were very friendly and helped her fill in the forms. I do not remember her saying anything about getting life insurance.

So you may want to consider natwest.

If not how about endsleigh for your life insurance?

[burto]

I am also with HSBC and have been for years, however, the most competitive PSL is Barclays. Barclays are very upfront, no handling charge and they arrange the life insurance for you at a competitive rate.

HSBC are good for some things..........PSL is not one of them lol

[burto]

Sorry, come to think of it the insurance was optional.

[jonesy]

hehe Hi Burto!

I wasn't asked about life insurance at Barclays, I don't think Natwest ask for it either, just HSBC (awkward as they are )

[Whiz_Fiz]

Thanks for your replies.

Since posting I've been making enquiries online and shopping around for quotes. For anyone else interested, I've included the findings of my queries below:

The cheapest I have found for £25, 000 cover is Synergy protect at £2.58 per month.
Other than that quotes have ranged from £5 (Norwich Union, Liverpool Victoria - £110,000 cover(!) and Swinton) and £6 (Virgin, Tesco) to £7.50 (Friends Provident).
*prices are per month*

Apparently a customer rep I spoke to warned me against taking a policy with synergy protect as they don't pay out but I'm tempted just for the sake of having "cover" for the loan.

On the other hand, if I am going to be taking out a policy, then perhaps I should consider a policy from the £5 p/m range from a reputable company who would actually pay out should the need arise. (?) I'm still not decided on this one.

As for HSBC, I'll be applying for the PSL this Friday, the only reason I'm applying there is that they offer upto £5000 for other expenditure like a car, etc - not sure if the other bank PSL's do this as well and I'm hoping to go for the full whack (£25, 000). Plus I'm relying on the fact I've been a customer for a while now....not sure if that's going to count but all will be revealed shortly.

Whiz_Fiz

[lucyfrombristol]

I'm not defending HSBC's requirement for live cover, but just wondered what would happen in the unlikely event of you becoming terminally ill or dying and not having cover for a loan. I wonder if your next of kin would be liable for your debt? If so life cover may not be such a bad thing...

[jonesy]

True I suppose Lucy!!! Btw just because they say you can have £5000 for a car doesn't mean they will willingly give you money for one! I had loads of hassle trying to justify why I needed a car in the first place. I'm sure all this dependent on the branch you go to. Good luck with your PSL application!

[Rachael]

Hi Whiz Fiz

Another route to finding competitive life cover would be through an Independent Financial Adviser - www.unbiased.co.uk has a search facility to enable you to locate your nearest IFA. It takes a lot of the hassle out of the process!