Fast and Discreet: Find out how Mercer PCS helped a client establish a savings plan in less than a week 

Female senior manager with artificial limb smiling towards Chinese male colleague, using laptop to make notes
Issue 4, August 2022 | PCS Vision

Background

Our client is the general manager of her family business and a highly experienced investor. She is in her mid-40s and is married with a child in high school, they live in Taiwan.

Key considerations

  • When we met, our client’s key focus was legacy planning. She was looking for a solution which creates a segregated pool of assets which are directed to certain family members outside the knowledge of other stakeholders in the family, including the spouse. She also wanted certainty in transferring the asset – in its entirety – on to her designated family member through an individual ownership structure (rather than a trust).
  • To balance her investment portfolio, and to minimize margin call risk, our client had a strong preference for solutions offering guaranteed cash value. She was not particularly concerned with rising interest rates as long as the solution returns adequately cover the financing costs in the long run.
  • Due to stringent pandemic quarantine requirements, our client was unwilling to travel for either a medical or to procure a policy.

Solution

PCS tailored a Hong Kong Savings Plan for the client:

  • The policy could be implemented through completely remote procedures, so the client did not need to travel.
  • Her wealth transfer objective is fulfilled by death benefits payout or cash value withdrawal to her child – her designated beneficiary.
  • The turnaround time was reduced to five days, which helped to preserve confidentiality.

Key takeaways

  • Individually owned policy can be pledged for premium financing, and the long-term portfolio growth will well-cover financing costs.
  • Remote processes through Hong Kong, Bermuda and Singapore offer wider product choices for clients, and quicker turnarounds (when compared with in-person procedures), especially for non-medical application processes.
Contributor(s)
Julianne Tse

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