A new chapter begins
Whole of Life for Peace of Mind: See how the right life protection policy is helping this client manage his personal and business risks
Background
Key considerations
- Our client’s main concern is the ongoing welfare of his family should anything happen to him. Young families tend to need a strong cash flow to support living and educational expenses; his children will be in high school and university for a long time yet, and his wife is not in paid employment.
- His secondary concern is to mitigate the possibility of domestic business risks.
- COVID-19 related restrictions and concerns periodically hamper our client’s travel plans – as is the case for many PCS by Mercer clients – so he was reluctant to travel overseas to undertake the necessary medicals. Simultaneously, he was keen to implement a policy in the shortest possible timeframe.
Solution
We recommended several suitable solutions from which the client chose:
- Whole of Life coverage of US$65 million. The total premium of US$26 million is financed.
- The Bermuda-based policy was incepted using end-to-end remote processes, including domestic medical examination in China. The entire arrangement was completed in just six weeks. (Whole of Life policies can take up to three months when using face-to-face processes).
- The sum assured and cash value will increase based on dividends/bonus increases.
Key takeaways
- The cash value of whole life insurance will not decrease, so the policy is unlikely to lapse. This category of life protection is, therefore, more conducive to premium financing.
- Rising interest rates are generally manageable, especially when the client’s private banker manages the loan on an active basis.
- The right life protection policy can help mitigate personal and business risks.
is a Managing Director at Private Client Services by Mercer. A seasoned senior Consultant, she has close to 20 years of extensive experience in the High Net Worth (HNW) life insurance industry working closely with private bankers, wealth planners, lawyers and accountants in customising bespoke solutions for their HNW and Ultra HNW clients’ long term needs. Based in Singapore, Glenda has a track record in managing and closing complex and mega HNW life insurance deals for clients in multiple jurisdictions. With her strategic and collaborative approach in wealth and liquidity planning, she is energetic and affable, and has gained the trust of her partners and clients over the decades. Glenda received her Bachelor of Commerce degree in Finance and Marketing from the University of New South Wales, Australia, and is a certified holder of Trust Estate Planning (TEP). She is fluent in English and Mandarin.
Email: Glenda.Tan@mercerpcs.com