Case study: Tailored estate planning
Background
This PCS by Mercer client is a well-respected medical professional. He is middle-aged, in great health, and married with young children.
Our client has an approximate net worth of USD200 million.
Key considerations
Our client is a dedicated physician who has a very busy schedule looking after his patients. His professional commitments mean there is little time for the management of his family’s investment and insurance strategies.
He is, however, concerned about his children if anything unforeseen should happen to him and his wife. Ideally, he wanted to provide a reliable income stream for his children in the future while diversifying his investment assets. To that end, our client has purchased more than twenty off-the-shelf life protection policies over the years. He has not previously performed regular reviews.
Our client was looking for a holistic solution consisting of competitively priced products that interact constructively to help his estate planning.
Solution
Total sum assured value: USD100 million.
Premium: USD18 million via multi-pay
We began a process of thoroughly reviewing the client’s existing insurance policies against his needs. We then assessed combinations of products that best met his requirements before proposing solutions.
Following our recommendations, the client exited most of his existing policies and took up three Whole of Life insurance plans from three separate carriers. The multi-carrier and product solution means he can protect his family while diversifying his risks in the long run.
The client was also able to secure the large sum assured at competitive prices due to his health condition.
Key takeaways
- Life protection is a key component of strategic investment portfolios, and estate planning. HNW individuals have complex and unique estate planning needs that can be best met with tailored solutions.
- Reviews may reveal that existing policies may no longer suit the client’s needs based on, among others, the performance of the existing policies and the changing client’s needs.
- The right combination of products can simultaneously safeguard assets and meet HNW strategic long term risk management goals.
- Clients can secure the best pricing while in prime health.