Didn’t engage a professional in your legacy planning? You might have missed this
HIGH-net-worth individuals (HNWIs) who come to Opus by Prudential for help with legacy planning typically want to ensure that their wealth can be transferred smoothly to beneficiaries with minimal tax burdens.
They ask about the tax implications of their insurance policies, protection against personal liabilities, how they can structure their wealth to ensure continuity and optimise their estate for their beneficiaries.
Often, however, they overlook the importance of regular reviews. They may also neglect to communicate their plans.
Goh Theng Kiat, chief customer officer at Prudential Singapore, said: “Circumstances and priorities may change, and you want to ensure that your legacy plans are still on track and reflect your current wishes.
“Sometimes, we make plans but forget to inform others.”
But, building a successful legacy is as much about strengthening family ties as it is about safeguarding financial assets.
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A holistic approach to legacy planning can help HNWIs avoid such shortcomings.
Opus by Prudential, which is the insurance company’s dedicated high net worth programme, has equipped 265 private-wealth consultants with dedicated resources and professional development opportunities that help them better serve the needs of HNWIs.
Last year, 30 of these private-wealth consultants completed a fully funded, customised course designed by the Wealth Management Institute (WMI), aimed at equipping them with expertise in asset protection, liquidity planning, wealth accumulation and wealth preservation.
WMI, founded by Singapore state investors GIC and Temasek, is a centre for wealth and asset-management education and research.
HNWIs who engage one of Opus’ private-wealth consultants receive comprehensive guidance in taking stock of everything they own – from insurance policies and bank accounts to investments and debts – to create a clear view of what needs to be done.
These consultants take their customers through a comprehensive fact-finding process to, firstly, ensure the customer has sufficient funds for retirement, and secondly, to determine what is to be left to family members or to charity.
Goh said: “Prudential’s private-wealth consultants are trusted advisors to our HNW customers and have a wealth of knowledge to guide customers through a comprehensive legacy planning process to meet their individual needs.
“Private-wealth consultants also facilitate expedited underwriting, dedicated case management, connections to our panel of partners and other services as part of the Opus programme to deliver a bespoke experience for customers.”
Opus’ panel of experts includes lawyers as well as tax and trust consultants, all of whom customers can tap to better navigate their legacy planning.
“Our Prudential financial representatives also work closely with these experts in engaging customers and providing advice from an insurance point of view,” Goh added.
Underpinning Opus’ advisory services is Prudential’s ever-growing suite of solutions that he said goes “beyond basic protection”.
This year, for instance, Prudential launched a novel indexed universal life plan called PRUVantage Legacy Index (PVLI).
In an indexed universal life plan, premiums paid by customers typically go into two accounts. One is a fixed account earning a minimum guaranteed interest rate. The other is an index account that gives exposure to equity indices.
PVLI is offering a crediting rate of 4.5 per cent for the fixed account in the first year, and 2 per cent thereafter.
The index account is protected with a floor rate of zero per cent – which means the index account will not lose value even during periods of negative market returns.
Unlike most indexed universal life plans, however, it has no cap on the maximum return. The index account is tied to the uncapped performance of the S&P500 Fast Convergence Index, which aims to hold more cash during periods of higher volatility.
High volatility is typically associated with negative market performance. When intraday volatility is running above 11.5 per cent, the index reduces its exposure to the S&P500 index.
When volatility is running below target, however, the S&P500 Fast Convergence index may increase its equity exposure by taking on leverage of up to 175 per cent.
Goh said HNWIs “require plans that are tailored to securing their wealth and building a lasting legacy that can be passed on to future generations.
“PVLI is an insurance plan designed for this purpose, offering long-term coverage and growth potential for their legacy.”
This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Consultant before making a commitment to purchase a policy.
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
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