Immediate Coverage and Plans for the Future: See how we helped a couple gain certainty and predictably in funding their children’s futures 

Issue 5, October 2022 | PCS Vision

Our client is a thirty-nine year-old male. He runs a successful family manufacturing business, which he has recently inherited in its entirety.  He has two young children, and his wife works alongside him in the business.

The client is concerned about his young children – in the event that something unforeseen should happen to him and his wife. The couple see offshore insurance as a good way of managing the potential risk, as well as a means of providing predictable income for their children in the future. 

1. The couple are seriously considering sending their children – when they are older – to study abroad in the U.S. Cognisant of rising inflation, and the growing strength of the U.S. dollar, their informed assumption is that the cost of studying in the U.S. will only increase in the future. Our clients wanted a solution which safeguarded future liquidity, and therefore wanted to explore savings plans.
   
2. The client is concern that loan liabilities and inheritance taxes will be a burden on his wife and kids should anything happen to him.
3. The couple is not making assumptions about the children taking over the business in the future. They want them to follow their passions in pursuing professional paths (e.g. music, media), but are aware the children’s future careers might not generate the level of income comparable to the family business. They want their children to be able to afford a comfortable lifestyle, and understand the need to plan for asset protection accordingly
4. Recently, the local currency has significantly weakened against the U.S. dollar.
5. The couple is unlikely to have the time to travel due to business and family commitment, but they would like coverage at the earliest possible opportunity.

Two saving plans (one for each child) to address future educational costs and to safeguard their income into adulthood.

• Savings plans can secure future income certainty and predictability.
• Multi-pay options can safeguard immediate cash flow while protecting future liquidity. Payments can be made at any time that is suitable, such as when the local currency is strong.
• If client is in a cash-rich situation, there are other plans PCS by Mercer can tailor and offer which reward the ongoing cash flow commitments.
• Protection products are continually evolving to meet the unique needs of HNW individuals.
• As traditional Universal Life and Savings Plan address different needs, clients should be offered both solutions when appropriate.
• Remote process allows clients to act promptly. Meetings are via Zoom, and documents are signed electronically allowing clients to access, incept, review, and explore solutions without having to travel¹.

¹Subject to the relevant legal and regulatory requirements of respective jurisdictions