Segregate, diversify, and transfer your wealth with one solution  

Issue 4, October 2024 I PCS Vision

We help a client find one solution that helps to segregate her wealth, diversify her assets, and prepare for wealth transfer. Read on to see how. 

PCS by Mercer client is a successful business owner in her forties. Married with three children, she is keen to safeguard the long-term welfare of her family as a priority, especially in unforeseen circumstances. Our client is also open to exploring protection solutions that can assist in ensuring business continuity. 

As a savvy businessperson who is conservative by nature, our client is also keen to temper the effects of fluctuating interest rates and volatile investment market conditions on her assets. 

In partnering with PCS by Mercer, the client is keen to: 

1. Build a mechanism for wealth transfer to her children, who might study abroad in the future,
   
   
2. Diversify the asset classes of her investment portfolio, because she is actively managing her risks in a volatile environment,
   
   
3. Expand the geographic distribution of her assets, because her assets are primarily located in the jurisdiction in which her family resides,
   
   
4. Segregate a part for her wealth for the specific purpose of legacy planning, and
   
   
5. Find a solution that helps to secure business continuity in any unforeseen circumstances. 

Following close consultation with our client, we presented an offshore Whole of Life solution. 

By naming her children as beneficiaries and making a one-off payment for the solution, the client effectively created a wealth transfer tool that immediately segregated part of her wealth. 

The solution also enables the client’s wishes to diversify her asset portfolio – both in category and geography. 

The client is in the processes of considering an additional onshore solution to safeguard business continuity as well as further increase the diversification in her portfolio. 

Premium: USD 2 million – single cash payment

Total sum assured: USD 10 million

• Life protection solutions are highly flexible and can provide many benefits beyond liquidity for loved ones.  
  
  
• Incepting both off- and on-shore solutions can help diversify an investment portfolio. 
  
  
• Whole of Life solutions are an effective wealth transfer tool. 
  
  
• As some offshore insurance carriers require policies to be held by either their master trust or a client’s own private investment company, an offshore solution may provide additional opportunities to segregate and diversify a high-net-worth portfolio.

* This case study is based on a real-life family. Some details have been changed to preserve privacy.