Multiple solutions for a sophisticated life
Profile
PCS by Mercer client is a business consultant in his 50s. The former chairman of a highly successful listed company, the client has created his wealth from business ventures as well as investments in equities and property.
Married with an adult daughter, the client currently lives in a different jurisdiction from his family to leverage business opportunities. His wife supports their daughter’s pursuits in academia.
The couple already have two savings plans** incepted in different geographic locations, and the client feels that they have enough coverage for liquidity purposes.
Key considerations/challenges specific to the client
Our client is considering opening a family office where he does most of his business, and his family may consider relocating there in the future.
Due to his geographically dispersed business interests and family, our client’s primary objective (in incepting additional personal insurance) is to secure a straightforward method of asset transfer. He is also using personal insurance for legacy planning purposes.
Our client has a busy schedule, so he did not want to undergo a medical examination. His sophisticated needs meant that we met with him on a number of occasions over six months to tailor the optimal solutions for him.
PCS by Mercer Solution
We shared a number of potentially suitable solutions with the client .
The client selected an indexed universal life (IUL) solution for a number of reasons, including inception without a medical checkup for the specific policy offered to him.<
Total sum assured: USD 4mil
Premium: USD 1 million - lumpsum payment via bank funding
Key Takeaways:
- 1. Life protection solutions are always evolving to meet the needs of high net worth individuals and their families.
- Different solutions can be used together to achieve the strategic outcomes required.
- Finding the right solutions can be a protracted process and PCS by Mercer consultants will continue to work with our clients to achieve the optimal outcome.
** Also known as income plans in some jurisdictions.
< Some carriers offer policies where the client may opt out of a medical as long as he/she is within an age limit stipulated, and willing to take on the standard rate. We note, any client will still need to answer the standard health questionnaire required by the insurers to be covered.