Indexed universal life plans hit the sweet spot among wealthy and mass-affluent clients

[SINGAPORE] Universal life (UL) policies have long been the mainstay of high-net-worth (HNW) insurance, but a variant that offers market exposure with downside protection appears to hit the sweet spot among wealthy clients.

Some insurers report increasing take-up of indexed universal life (IUL) policies with a larger sum assured to boot. Manulife recently issued a US$300 million policy for a single client that may well be the largest to date in Singapore and in the region.

In the last 12 months, it issued 25 individual policies each valued at more than US$50 million. Between 2024 and 2025, sales rose by 40 per cent in this segment of policies.