Stable and flexible wealth transfer in a high-inflationary environment 

PCS by Mercer client is a sophisticated entrepreneur in his late-60s. He is the managing director of a listed company.

Our client is married with three small grandchildren and currently awaiting the birth of a fourth. He strongly believes estate planning is essential for efficient wealth transfer.

With the understanding that life protection and savings plan are efficient and effective wealth management solutions, he met with PCS by Mercer with the expressed intention of finding a flexible wealth transfer solution – one that will enable him to transfer some assets to his grand children.

1. For the purpose of legacy planning benefiting his grandchildren, our client would like to create a new and stable portfolio, one that is distinct from his existing wealth management portfolio.
2. He is specifically looking for stable, low-risk assets which have inherent future flexibility – enabling him to withdraw partial cash for their education costs – following years of accumulation.

After thoroughly reviewing the client’s requirements and all solutions available on the market, PCS by Mercer recommended our client incepting a separate savings plan for each of his four grandchildren.

• The premium of USD5M for each policy (totaling USD20M) can be paid via five equal payments.
• In terms of flexibility, our client would be able to access cash value after three years of accumulation and the breakeven point is around year 8.
• Our client was able to incept all four policies – all via non-face to face processes – within a month from first meeting with PCS by Mercer.

Gifting of savings plan is a low-risk wealth transfer method. Its utility usually includes the ability to transfer the policy over to multiple beneficiaries by changing the insured person.  No medicals are required for saving plans, and subject to applicable terms and conditions, partial withdrawals are permitted, increasing the solution’s flexibility.

Remote processes can be used by certain clients from designated jurisdictions to access solutions from Singapore, Bermuda, and Hong Kong. In some cases, plans can be incepted within a month.

PCS by Mercer are experts at finding the right life protection solutions to suit individual client’s unique circumstances.