Wealth Management Singapore

The following is a real life case study.

Mdm Hayashi is 60 years old. She was the second wife of her deceased husband, late Mr Cheong, who was also her second husband. She married Mr Cheong when she was in her late forties and Mr Cheong in his early fifties. She has 2 adult children still in Japan from her first marriage and Mr Cheong has 2 adult children from his first marriage living and working in Singapore.

When Mr Cheong passed away 3 years ago, he left in his Will 55% of his assets to Mdm Hayashi and the rest to his 2 children. Mdm Hayashi’s current networth of $5 million is almost fully from this inheritance. Mr Cheong’s 2 children are both doing really well financially. However, it is Mdm Hayashi’s wish and the step children’s expectation that upon Mdm Hayashi’s passing, most of the wealth from Mr Cheong should be inherited by the step children instead of Mdm Hayashi’s Japanese biological children.

Mdm Hayashi has been used to a very comfortable lifestyle by now and this rises the question of how much of the $5 million will be left when she passes. Her situation is a classic case of the earlier generation wanting to both enjoy the wealth as well as share it with the next generation.

The situation was solved by a Universal Life Insurance policy. An amount of $1.7 million is used to set up a Universal Life Policy. The policy has a guaranteed cover of $4 million upon Mdm Hayashi’s passing. With this Mdm Hayashi can enjoy the remaining $3.3 million without any worry knowing that she has done her part in leaving $4 million for Mr Cheong’s children.

In addition, at year 20, when Mdm Hayashi will be 80 years old, the policy has a good guaranteed surrender value of $2.0 million and a projected surrender value of $4 million at current interest crediting rates.

For information on Universal Life Insurance go HERE