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Wealth Giving Here's How You Can Manage Your Assets And Prepare For Retirement With Manulife's Signature Indexed Universal Life Plan

Here's How You Can Manage Your Assets And Prepare For Retirement With Manulife's Signature Indexed Universal Life Plan

Here's How You Can Manage Your Assets And Prepare For Retirement With Manulife's Signature Indexed Universal Life Plan
By Gerald Tan
October 07, 2019
The insurance company hopes to help clients expand their affluence from now and into their twilight years with this policy

Wealth does not happen overnight. It takes years of hard work, sharp business acumen and a whole lot of grit. In the face of an unpredictable future, more needs to be done to protect your wealth for generations to come. What’s certain: adopting pro-active measures such as smart investing and picking the best asset management schemes are now more important than ever before.

Legacy planning strategies are also another means of wealth protection favoured by ultra-high net-worth individuals (UHNWIs) and their families. At its core, legacy planning is about the distribution of wealth among selected beneficiaries via a well-devised arrangement. After all, what is the point of all your accomplishments if your family cannot enjoy the fruits of your labour? However, it should be about more than just the allocation of your riches post-retirement or when you’re no longer around—it should also be about safeguarding your assets and extending their value.

(Related: 5 Ways To Successfully Manage A Generational Transfer Of Wealth)

Choosing the most suitable life policy

This is why life insurance solutions such as universal life policies are crucial. These typically low-risk wealth management tools also provide insurance coverage. “People tend to invest a lot of funds into their businesses and, as a result, they may not have the cash flow to purchase a large policy to protect their assets. Life insurance is an asset in itself because of the capability of the policy to be financed. Banks can use it as collateral and the policyholder can use it for instant protection for the family without a significant cash outlay,” said Khoo Kah Siang, CEO of Manulife Singapore, in a previous interview with Singapore Tatler.

As one of the leading insurance companies with 28 million customers worldwide, Manulife knows a thing or two about future-proofing. To help clients expand their affluence from now and into their twilight years, it has introduced the Signature Indexed Universal Life policy. Touted as an all-in‑one life insurance policy, it combines legacy planning, estate liquidity and business continuity in one convenient product. Simply put, as the policyholder, you can distribute your wealth accordingly, split your estate equally as well as protect your most valuable employees.

Guaranteed cash value growth at 2 per cent per annum

For advanced planning of the protection of a policyholder’s wealth and businesses, Signature Indexed Universal Life adopts a two-pronged approach that funnels the premium into fixed and index accounts at a 3:7 ratio. For the fixed account, there is a minimum guaranteed rate of 2 per cent per annum with a guaranteed loyalty bonus of 0.2 per cent per annum for year 11 to 20, and 0.25 per cent per annum from the 21st year onwards. For the index account, the interest is based on an underlying index and subject to a floor and cap rate predetermined by Manulife.

This means the policy is protected by the Minimum Surrender Value, which guarantees your cash value grows at 2 per cent per annum, while other attractive interest rates provide stability during periods of market volatility. It suits customers with a greater appetite for risk, and who want to earn potentially higher returns than other existing policies offer in the long run.

(Related: How To Manage Your Investments In An Uncertain Global Market)

“We want to please our UHNWI customers, appeal to them with consistent products, and be relevant to them,” said Khoo. “At the same time, we also want to manage our products well for the future and not just show nice numbers because some of the returns are not guaranteed. What’s important for us is to demonstrate our ability to manage the risks well, especially during current times when rates are increasing. We are cautious not to over-promise.” 

The Manulife Signature Indexed Universal Life policy is perfectly in line with its guiding philosophy. It offers the flexibility of accessing and changing your policy values for whatever curveballs life throws at you. When it comes to building an enduring legacy for those you treasure, it pays to be prepared.

(Related: 22 Singaporeans Made It To Forbes’ 2019 Billionaires List)

Increasing the value of your assets—with minimal risks

Jack Tan is an ultra-high net-worth individual, who has spent years building a successful empire. With his golden years approaching, the possibilities of a change of pace and even retirement are on his mind. So, of course, he wants to know how the value of his $10m asset can be increased without much risk as he would like to bequeath a substantial amount of his wealth to his children while still comfortably living out the rest of his life.

Enter the Signature Indexed Universal Life policy. With the intention to leave $6m for his children, Jack can purchase the policy with a similar death payout amount. This way, with $2m as a single premium, his children will potentially have $6m upon his passing and he will increase his retirement fund from $4m to a possible $8m. He can now choose the lifestyle he desires to lead. Travel the world in style, purchase a luxurious holiday home, donate more to a worthwhile cause... the possibilities are endless.

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