Case study: Two-phase protection for a young family 

Inheriting a successful business is a fortuitus event, but one that has accompanying stressors complications, and risks. PCS by Mercer understand what our clients need to navigate this particular junction in their lives.

This is how we helped a family of six mitigate the risks of inheriting and owning a business.

PCS by Mercer client is a forty-three year old male. He is married with four young children, and his wife is a stay-at-home mum.

He has recently fully inherited the family business – a food distribution company – from his parents and is now the key director running the company.  

Our client’s most immediate concern stems from his recent attainment of full business ownership. Despite the event being a net positive outcome, his key directorship and ownership increases the possibility of business risks implicating his personal assets, and thereby affecting his children’s future.

He is worried, if something should happen to him, that the business would operate inefficiently without his direction and his family would suffer a loss of income.

The client approached PCS by Mercer to explore offshore life protection as a tool to mitigate the loss-of-income risk. He is looking for a solution that provides liquidity to both the family and the business.

We carefully reviewed the client’s requirements and assessed various solutions available on the market against his needs.

We presented Universal Life, Whole of Life and Savings Plan options to the client and he chose a Whole of Life policy as ‘phase one’ in his protection strategy. In the second phase, he will incept savings plans to further secure his four children’s future educational expenses.

Whole of Life:

·       Lump sum premium: SG$1M

·       Total sum assured: SG$4.5M

PCS by Mercer are experts at finding the right life protection solutions to suit each client’s unique circumstances. We frequently present multiple viable options to clients whilst helping them to find the most suitable wealth protection and transfer strategies for their unique circumstances.

Savings plan is a low-risk method to secure children’s future educational expenses, which can be considerable in large families planning global education. No medicals are required for saving plans, and partial withdraws are generally permistted, increasing the solution’s flexibility.