Retirement income and legacy 

Our client is a private investor and retiree in her 70s. She has three adult children. 

Previously focused on her business and growing family, our client had held steadfast to her objectives on a policy that she incepted almost 20 years ago. During a recent policy review, however, we discovered her objectives for personal insurance have changed since the advent of her retirement. 

Protecting her children was the original motivation for the client to incept the policy nearly two decades ago. However, the children are now adults with successful careers of their own and no longer require comprehensive safeguards.  That said, she still wishes to leave them a significant legacy.  

Our client is also eager to establish a consistent source of income for her retirement. As a retiree and a conservative investor, she strongly avoids high-risk instruments when generating income.

Following our meetings with the client, PCS by Mercer presented her with a savings plan solution that starts to pay an income in year five. 

The cash value of the solution compounds over time, so, it will eventually become a substantial amount to pass on to her children as a significant legacy.

Our client’s objectives are met by the new solution, so she surrendered her original policy. 

Premium: USD 1.5 million funded by the client. 

1. Regular policy reviews are vital. Lives change over time, even in the absence of unexpected events. Policy review meetings create an opportunity to discuss changing needs and any unfulfilled wishes that can potentially be addressed with life protection solutions. 
   
   
2. Saving plans can simultaneously create liquidity and build future legacy. 

* 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.