A solution to stabilize income and create flexibility 

PCS by Mercer client is a male TMT (technology/media/telecommunications) entrepreneur in his 60s. He is married and has a daughter.

Highly successful, our client is well versed in both the upsides and downsides of bold business maneuvers. And even though he continues to thrive in a high stakes environment, he is now equally keen to engineer stability into his family’s lives.

• The client was raised in a middle-income family and has built his net worth through a prominent business. 
• The business is one that offers high returns when high risks are taken, and therefore he experiences considerable fluctuations in income. The variability in cash flow has occasionally created uncertainty in his financial position. 
• A sophisticated investor with a diverse investment portfolio, our client is aware that investment performance is susceptible to market volatility. 
• To ensure his family’s financial security – irrespective of market volatility or business cycle – our client is strategically setting aside a percentage of his savings as a safety net. 

We put forward a savings plan** solution that offers medium term growth potential. The solution recommended entails  a cash value breakeven of four years. 

The policy provides numerous options for cash value accumulation and withdrawal, as well as other flexible features that benefit our client’s needs. 

We advised the client to incept the policy at the earliest opportunity to facilitate the cash accumulation period. 

Premium: USD 30 million - lumpsum payment via bank funding. 

1. Market volatility can be counterbalanced with strategic investments in personal protection policies.
   
   
2. Investment diversification is key in managing risk. It is important to have downside protection to preserve and enhance personal net worth.
   
   
3. Early wealth management planning allows for maximum cash value accumulation.
   
   
4. High net worth individuals have unique needs and PCS consultants are global leaders in providing customized solutions to meet our clients’ requirements whatever they might be. 

* This case study is based on a real-life family. Some details have been changed to preserve privacy.
** Also known as income plans in some jurisdictions.