Borderless wealth: Insurance as the driver of resilient and lasting wealth for HNWIs

THE internationalisation of wealth is reshaping how high-net-worth individuals (HNWIs) plan, manage and grow their assets. Today, they are global citizens, with businesses in one country, investments in another and families in a third. In this new world of borderless wealth, insurance is becoming a critical enabler, helping them accumulate, diversify and safeguard their assets across jurisdictions, while supporting long-term legacy planning.

Global citizens, diversified portfolios

Rising mobility is shaping this global mindset. This mobility trend is evident in HSBC’s Global Wealth Hubs: Drivers of Diversification 2025 report. According to the report, 69 per cent of global entrepreneurs are moving wealth to a new location and 73 per cent are conducting business in a different market. Singapore was indicated as the top residency option for HNWIs considering relocation, especially among Asian entrepreneurs.

Market conditions are also adding to this shift, where diversification has become a priority. Findings from the HSBC Affluent Investor Snapshot 2025 show that they are reducing cash holdings by nearly 40 per cent in 2024. They are also reallocating into international equities, multi-asset strategies, gold and other alternatives with their top markets for exposure over the next 12 months being the United States, the broader Asia-Pacific region and China.

“High-net-worth individuals are thinking and planning globally,” says Harpreet Bindra, chief executive officer of HSBC Life Singapore. “With wealth ambitions that transcend borders, they are diversifying residences, assets and businesses to capture global opportunities and better manage risks. Insurance has a unique ability to support these ambitions through a combination of protection, capital preservation, growth, flexibility and global portability.”

Insurance as a strategic asset

Insurance solutions today go beyond traditional protection. They provide access to global investment opportunities while supporting broader wealth management strategies.

In fact, according to a Straits Times report, whole life and indexed universal life products are attracting growing interest in Singapore, particularly in today’s high volatility market environment because they combine investment and protection components within a single plan.

Indexed universal life plans also allow clients to participate in global indices for potentially higher investment returns, while offering downside protection against market losses. For example, HSBC Life Diamond Prestige IUL II offers a choice of four indices across diverse asset classes and geographies, including multi-asset indices with exposure to gold and more. The four diverse indices allow clients to amplify potential positive returns by up to 220 per cent* while safeguarding their wealth with up to a 1 per cent floor rate.

With indexed universal life plans, customers can capture market upside with greater ease and save time from having to actively manage or monitor their portfolio.

Evolving priorities and family dynamics

Beyond investment performance, insurance also plays a vital role in how wealth is transferred and preserved across generations. Shifting family dynamics are changing how affluent families approach succession and legacy planning. For example, the HSBC 2025 Global Entrepreneurial Wealth Report shows that while 81 per cent of Singapore’s entrepreneurs want to keep their businesses within the family, 52 per cent worry their children may not want to take over and 48 per cent prefer their children to pursue independent ventures. Additionally, HNW families often have illiquid or cross-border assets that can present challenges during wealth transfer.

These trends call for a more flexible approach to legacy planning. Insurance can play a critical role in accommodating diverse aspirations within a family. Policy payouts can equalize inheritances, ensuring children who do not inherit the family business receive fair financial support. Entrepreneurs are also using insurance for keyman protection during leadership transitions.

For families choosing not to transfer their business or are business owners holding illiquid assets such as property or private equity, insurance provides a reliable source of liquidity, avoiding forced asset sales and can help facilitate a smooth wealth transfer.

“Legacy planning is becoming deeply personal,” Bindra observes. “More families are embracing their children’s ambitions. Some children continue the family business, others strike out independently and many move across borders. Insurance bridges these differences, giving families the flexibility to respect individual aspirations while protecting the overall wealth they have built.”

For HNW families with cross-border assets and intricate family structures, insurance also serves as a streamlined and jurisdictionally neutral vehicle for passing wealth to future generations. Features like guaranteed cash value, option to choose death benefit payout in a single lump sum or in instalments and ease of wealth distribution make it an accessible and efficient tool for legacy planning.

Bespoke solutions for complex wealth

As their wealth portfolio develops globally, HNWIs are also seeking customised solutions tailored to their circumstances. Variable universal life insurance (VUL) plans are one example of bespoke solutions gaining popularity particularly for clients seeking capital-efficient tools that are recognised across jurisdictions. Clients have the flexibility to pay premiums in cash or other assets – such as equities, bonds, ETFs – while retaining control of their investments. These features are attractive to HNWIs who may want to minimise liquidity calls, owing to the majority of their assets being tied up in their business or other investments. With a VUL, they can get the best of both worlds by increasing and diversifying their estate value and getting lifetime coverage without having to liquidate assets to pay for their premiums.

Life insurance solutions can also help with efficient tax planning, allowing the policy’s cash value to compound in the long term.

The value of expert guidance

With growing complexity comes a greater need for specialist advice. According to the HSBC Affluent Investor Snapshot 2025, eight in 10 of them seek professional guidance when making significant wealth management decisions. 75 per cent of them prefer advice designed specifically for their situations.

Advisors can help provide HNWIs with timely financial advice, acting as an independent sounding board to provide fresh insights and put optimal wealth structures in place once the family strategy is clear.

For HSBC Life’s HNW customers, they not only benefit from insurance expertise but also the combined HSBC Group’s wealth capabilities. This integrated approach enables them to build personalised insurance strategies that complement broader wealth goals while tapping on the bank’s wealth expertise.

Shaping the future of wealth

It is clear that insurance is no longer just about protection. It has become a cornerstone of modern wealth management, helping families navigate global wealth strategies, diversify across markets and secure multi-generational legacies.

HSBC Life Singapore is prioritising this opportunity by combining global expertise with deep local insights to help clients plan smarter, protect what matters and thrive for generations to come.

“As Singapore cements its role as a leading wealth hub, our focus at HSBC Life is to understand the unique ambitions of our clients and create solutions that not only meet their needs but help them plan better in an increasingly complex world,” says Bindra. “Whether that is safeguarding their business, supporting their children’s ventures or creating a lasting legacy, we take a holistic view of our clients’ needs and provide bespoke, flexible and forward-looking strategies that empower families to preserve, grow and transfer their wealth across generations.”

*Current assumed participation rate, and is non-guaranteed.

Terms and conditions apply. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore.