Case study: A lasting and loving legacy
You can’t put a price on love, but forward planning and a well-structured insurance solution can ensure your loved ones are cared for in the decades to come.
Background
Our clients are a 62-year-old father and his 34-year-old son.
The father is the founder of a listed company. He has an existing life policy (USD20M) without premium financing. Unfortunately, he has received a cancer diagnosis in the past 12 months and has found it challenging to purchase more insurance coverage. But the scare to his health has made him more determined than ever to look after his only child.
The son is working in the business his father founded, but he doesn’t hold any public shares, has negligible personal assets and no private bank account in his own name.
Solution
PCS went through a thorough process to fully understand the extent of the father’s assets, and the coverage the son and family would need to maintain their lifestyle.
Father: Covered by a savings plan with death benefits. The sum assured grows by USD4M in the 10th year and USD16M in the 20th year. The total premium of USD13M was part-financed by cashing in his existing policy for USD4.4M.
Son: A sum assured jumbo policy of USD50M in view of the father’s total assets. PCS was able to utilise the results of medical examinations undertaken in the country by the client, who was able to navigate COVID related cross-border restrictions. Total premium paid: USD27M.
Key takeaways
Insurance is an important financial expression of a parent’s love and affection. You can maximize your legacy by organizing insurance solutions as early as possible; forward arrangements not only demonstrate foresight, but they can also lower associated costs and expand insurable conditions.
Despite COVID border closures, the PCS clients were still able to easily implement offshore life insurance solutions relying on the results of medical examinations conducted in China and remote application processes.
Complexities can be managed. PCS by Mercer solutions are consistently client-centric. Before tailoring solutions, we always work to understand our clients’ specific needs and evaluate the entire spectrum of challenges they might face. Our comprehensive processes work to provide the best, most suitable and most economical solutions for our clients.