A dedicated policy review team and the green pass – The PCS by Mercer difference
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What is a policy review?A life insurance policy review is a meticulous examination of existing coverage against real-time needs. When undertaking the process, our aim is to create and maintain financial security for loved ones and businesses. A policy review assesses policy terms, benefits and beneficiaries, as well as continuing relevance and scope adequacy – to ensure policies align with the client’s current life circumstances. We go into details, including assessing the investment performance of policies against market trends, and we conduct gap analysis across all coverage areas.
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Incepting the policy is usually a very thorough process, why do clients then need yearly policy reviews?
Life can change dramatically and rapidly. Effective cover for a working couple with a single child becomes inadequate when a set of twins arrive. Outside the common milestones such as children, marriages, divorces, illnesses and retirement, life can also change unpredictably. And whilst you are in the middle of a significant event, it can be difficult to see the new gaps in your coverage needs, or worse, how the details of your policy might no longer be appropriate. In one tragic and cautionary case, during the claims process for a death benefit, it was discovered that the beneficiary had passed away prior to the policy holder, so the proceeds of the policy had to go into probate, in accordance with the law.
Inconsistent policy performance is another reason policies should be regularly reviewed. Life insurance policy performance can be influenced by fluctuations of dynamic variables, including market trends, moving interest rates, and an insurer's investment choices. In some cases, unreviewed policies can lack the cash value to cover the cost of insurance, causing the policies to lapse.
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Why does PCS by Mercer have a dedicated policy review team?PCS by Mercer is one of the insurance brokers in the PRC to have access to a global team dedicated to policy reviews. The team is equipped with knowledge of both on- and offshore policies for all our clients because the comprehensiveness and regularity of policy reviews are key to having the right insurance coverage, which is central to truly successful wealth management.
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Why should life insurance be considered as an essential part of wealth management?We believe protecting ongoing financial wellbeing and having a solid safety net to protect lifestyles and businesses are the central objectives of wealth management. Picking the suitable HNW life insurance solutions can help to meet ongoing obligations such as tax payments, loan repayments, business continuity, and asset protection, and as such, are an essential part of strategic wealth management. Moreover, life insurance solutions are multifaceted and can be used in numerous ways, including maintaining business cash flow, fulfilling investment needs (e.g., cash value accumulation), estate planning, and supplementing retirement income. In some jurisdictions, they can also provide tax efficiency. **
Green Pass
What is the Green Pass? And what advantages does it offer?
The Green Pass is unique in the PRC market. It offers rapid access to a preliminary offer of China onshore life insurance for our valuable clients – provided that the eligible client has an offshore life insurance policy-related medical report less than 12 months’ old.
In fact, Green Pass-enabled offers can be made within a week, which is up to three weeks quicker than conventional processes. ^
The Green Pass is another unique solution we have for the PRC market, we created the process by leveraging our close relationships with our onshore insurance and bank partners. The key differences, when compared to the conventional process, are:
a. Waiver of additional medicals: Eligible medical reports conducted within a 12-month period of the new onshore policy can now be used, which means there is no need for additional medicals under certain conditions.
b. Bank references are accepted as proof of asset: Reducing both time for evidence-gathering and related processes.
c. Simplified underwriting process: further to a. and b. above, less paperwork means fewer processes, saving clients’ time.
**Tax obligations are jurisdiction dependent. Clients are advised to consult specialist tax advisors before making financial decisions.
^Offers are preliminary and subject to conditions.
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joined PCS by Mercer in 2024 as the Head of Strategic Partnerships. She brings 17 years of experience in insurance and financial solutions sales in the Hong Kong and Canadian banking industries. Stephanie’s previous experiences include roles at Hang Seng Bank, Manulife (International) Limited, Tahoe Life Insurance Company Limited, Prudential Hong Kong Limited, Hong Kong & Shanghai Bank Corporation, and Bank of China (Hong Kong) Limited, where she refined her strategic sales and planning, project management, and commercial management skills. Throughout her career, Stephanie has utilized her excellent communication and problem-solving capabilities and is a motivated team player. She values and nurtures collaborative partnerships.
Stephanie has a BA (Hons) in Economics with a minor in Finance from McMaster University as well as a Bachelor of Law degree from Manchester Metropolitan University.