Income for three generations 

Our client is a successful CEO in his 60s. He is married with two adult daughters. The daughters each have growing families of their own. 

During a recent policy review with PCS by Mercer (PCS), the client expressed a strong wish to create ongoing income and financial safeguards for his daughters and grandchildren. 

The client has two existing savings plans** that he incepted around three years ago. One of the policies was brokered by PCS and is under premium financing. The other plan was paid in cash. 

His intention when incepting the two original plans was to begin saving for his daughters – gifting them with the plans at a later date. However, as he watches their families grow, our client now feels compelled to contribute to the young families’ income as well as the grandchildren’s education funds. 

At this time, our client is unable to make withdrawals or obtain the full cash value from his existing policies due to premium financing obligations and because the cash accumulation periods are yet to be entirely served. 

At our meeting, the client expressed his strong desire to plan for future generational wealth transfer. He also wants to diversify his asset portfolio to mitigate his personal risks. 

Following close consultation with our client, PCS by Mercer presented the following solution: 

• We advised the client to keep his existing policies for his own wealth management and future income as well as incept two additional savings plans with his daughters as the beneficiaries.
• To achieve asset diversification and risk mitigation, we suggested the policies be incepted with two carriers in different insurers. 
• To help facilitate future wealth transfer, we sourced competitive policies with flexibility features, including naming contingency owners, and policy split options, which will also maximize his daughters’ options for their own wealth planning. 

Premium: USD 2.5 million for each of the two new policies: USD 5 million in total 

Total sum assured: USD 60 million across four policies. 

1. PCS consultants have the expertise and insight to help safeguard the wellbeing of not just our clients, but also their family members.
   
   
2. Our deep product knowledge and partnerships with global insurance carriers mean our clients have a breadth of solutions at their disposal.
   
   
3. Regular policy reviews enable our clients to communicate their changing needs. Life changes, but the need for insurance remains, so PCS are here to help find the most suitable solutions at any stage of life. 

* This case study is based on a real-life family. Some details have been changed to preserve privacy. 

** Also known as Income Plans in some jurisdictions.