Redefining legacy planning in wealth management

With many affluent families in Asia set to hand over the reins of their businesses to the next generation, legacy planning has become an increasingly important factor in wealth management. Within the next decade, some US$2.5 trillion (S$3.4 trillion) of wealth is expected to change hands, according to the Wealth-X Family Wealth Transfer Report 2021.

High net worth individuals (HNWIs) have been turning to solutions such as Universal Life Insurance products to help them achieve a more seamless transfer of wealth and assets. For instance, HSBC Life's Jade Legacy Universal Life is a whole life non-participating universal life insurance policy that enables customers to preserve their wealth, build a lasting legacy from generation to generation and protect future assets and financial needs of their loved ones.

Innovative legacy planning solutions

HSBC Life has long been a leader and expert in Singapore for HNW protection and Universal Life. In Singapore, the insurer provides a comprehensive range of solutions that cater to retirement, protection, education, legacy planning and wealth accumulation needs of its retail, corporate and private banking customers through its branch and sales network, financial advisers, as well as other financial institution partners.

This success has been underpinned by its market-leading Jade Legacy Universal Life product, which has been popular among the HNW segment here.

The product offers competitive premiums with one of the best total surrender yields. It is also the only Universal Life solution to offer a flexible rate lock option of one, three and five years. For instance, a client who has chosen the three-year option will receive that guaranteed crediting rate for the first three years and, subsequently, the current general crediting rate.

Other innovative features of the Jade Legacy include a charitable giving benefit that allows a policyholder to make a substantial gift of one per cent of the sum insured, an option to guarantee the policy stays in force till age 100 and a partial waiver of the surrender charge under certain conditions.

Jade Legacy Universal Life features: • Flexible rate lock options of one, three and five years: Option to lock in at a guaranteed crediting rate for one, three and five years to grow cash value • Charitable Giving Benefit: Allowing you to make a substantial gift of one per cent of the sum insured, up to US$100,000 to charity at no additional cost • No-Lapse Guarantee option: For USD-denominated, single-premium policies, there is an option to guarantee that the policy stays in force till age 100 with coverage against death and terminal illness remaining in force, even if the cash value drops to zero • Surrender Charge Waiver option: The Surrender Charge payable will be reduced according to scale if you make a full surrender and termination of policy before the 10th Policy Anniversary. Applicable only to Ultra

HSBC Life also offers the Emerald Legacy Life II plan, a single premium whole life plan that is increasingly popular in the HNW market. Beyond its competitive premiums, the product offers the unique option to extend Minimum Protections Cover to age 99.

This extension can be selected prior to the policy issue date, at every fifth policy anniversary or upon the occurrence of certain life-stage events such as the insured getting married or having a child. Another unique feature of the plan is a Quit Smoking Incentive, which allows a policyholder who has been underwritten as a smoker to receive a refund of 5 per cent on the premium paid if certain criteria are fulfilled. For instance, the insured must provide a negative urine nicotine test conducted by an appointed doctor.

"With the rising trend of HNWI seeking life insurance protection and potential wealth accumulation, we want to give our customers the best plan of its class. Competitively designed with a guaranteed interest rate lock option to grow cash value while providing greater flexibility in premium payments, Jade Legacy Universal Life protects and accumulates wealth that lasts for the people who matter to them most," says Mr Daniel Lum, chief product officer of HSBC Life Singapore.

Global expertise

As part of the global HSBC Group, HSBC Life is able to leverage an international network of expertise and wealth management capabilities to support its customers' legacy planning efforts.

HSBC Life's efforts in providing legacy planning services is part of its broader ambition to become a leading integrated health and wealth provider. The aim is to deliver a holistic wealth and health planning experience, to seamlessly meet the needs of its customers - from health, asset and life protection, savings and investments, employee benefits and retirement and legacy planning - as they move from one stage of life to the next.

"Asia's wealth management industry is evolving. The region's vast middle class, ageing population and resilient economic growth are shaping Asia's wealth management prospects, which extend beyond traditional wealth precepts," says Ms Ho Lee Yen, chief executive officer of HSBC Life Singapore. "As an Asia-centric bank, we are uniquely placed to serve the wealth and protection needs of people in this dynamic region. Our goal is to deliver a holistic platform to provide customers with best-in-class offerings across life insurance, healthcare, wealth and banking."

Disclaimer

Jade Legacy Universal Life and Emerald Legacy Life II are underwritten by HSBC Insurance (Singapore) Pte. Limited (Ref.No.195400150N). This article contains general information only and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. This is not a contract of insurance and is not intended as an offer or recommendation to buy the product. A copy of the product summary may be obtained from our authorised product distributors. You should read the product summary before deciding whether to purchase the product. You may wish to seek advice from a financial adviser before making a commitment to purchase the product. In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you. Please refer to the policy contract for the exact terms and conditions, specific details and exclusions of this product. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. It's also detrimental to replace an existing life insurance policy with a new one as the new policy may cost more or have fewer benefits at the same cost. Information is correct as at May 5, 2022. This advertisement has not been reviewed by the Monetary Authority of Singapore. Protected up to specified limits by SDIC.

Learn more about how HSBC Life can support your legacy planning efforts.