Case study: An offshore safety net 

Our client is married to the founder of a listed company and the second largest shareholder of the company. Our client has a child studying abroad.

Despite her current good health, our client experienced a major illness more than a decade ago, so she was worried about either being declined by the insurer or having to pay an exceptionally high premium. Our client was also concerned that recent legislative changes would adversely impact the extent of the family’s wealth and wanted to create liquidity overseas.

• An offshore US$10 million Whole of Life solution which continues for our client’s lifetime. Whole of Life policies have a number of benefits. They pay a death benefit and also have a savings component. The savings component can be invested. The client can access the cash during her lifetime, by either withdrawing or borrowing against it as required.
• The policy therefore satisfies the client’s need to create offshore liquidity in the event of an accident. It also serves can as a safety net for the family wealth.
• Premium of US$3 million.
  

1. Despite Covid lockdowns, the PCS client was still able to apply for and incept the policy with ease. PCS strongly advocated on her behalf to procure a standard rating – we asked the insurance company to consider her current health rather than medical history.
2. PCS by Mercer solutions are consistently client-led. Before tailoring products, we always work to understand our clients’ specific needs and evaluate the entire spectrum of challenges they might face. Our comprehensive processes work to provide the best, most suitable and most economical solutions for our clients.