The lives of wealthy people and their families tend to be complex and mobile.
Many own properties and other financial assets, including businesses and non-standard investments, in different countries around the world. And many of them expect to move more often in future, seeking places they believe are more economically and politically secure.
Movement on this scale exposes them to a range of different and fast-changing civil and tax laws, which can significantly complicate their strategies for successfully – and cost-effectively – passing their assets on to the next generation.
The importance of a planned wealth transfer
This is a vital issue – not just for the families directly involved, but also for investment professionals and financial advisers across the world. It is estimated that over the next 10 years, more than 14,000 ultra-high-net-worth individuals (UHNWIs, defined as those with assets, excluding their main property, worth US$30 million or more) are likely to take this action*. This will be the greatest transfer of wealth the world has ever seen.
So UHNWIs increasingly require financial solutions that allow them to protect their diverse assets and pass on their wealth while maintaining their international lifestyle. They therefore need effective strategies that adapt to different civil and tax rules while treating their assets tax-efficiently.
A mobile solution
In short, they require a financial solution that’s as mobile and flexible as they are. It must comply with international law and help them easily secure and move their wealth. And it must be capable of adapting easily to changing situations, goals and regulations.
One such solution is unit-linked life insurance. There are several reasons why this is recognised internationally as an efficient wealth transfer solution. First and foremost, it enables high net worth individuals to transfer their wealth easily, tax-efficiently accommodating a diverse range of assets and adapting to clients’ changing needs and goals.
Just as important, it adapts easily to changing international regulations and works effectively in many countries where wealthy individuals choose to relocate and live. Perhaps above all, unit-linked life insurance can be used to ensure that wealth is passed on to the next generation, in line with the policyholder’s wishes.
So unit-linked life insurance ticks all the boxes in terms of what UHNWIs are looking for. But it only works to its full effect when it is tailored to meet the specific needs of each individual client. That’s why selecting the right provider is just as important as choosing the right product.
Securing finances worldwide
Swiss Life Global Solutions, has been helping wealthy individuals and families secure their finances worldwide for more than 160 years. We have a proven record in using life insurance to provide wealth transfer across Europe, Asia and beyond. And our Swiss shareholder status with Luxembourg, Liechtenstein and Singapore regulated insurance solutions delivers another level of confidence for our clients.
But it is the expertise and attitude of our 200 global cross-border specialists that makes the greatest difference. They are committed to focusing on each client’s individual need and priorities, and they understand what it takes to simplify UHNWIs’ lives in a fast-changing world.
That means we can always deliver a powerful, comprehensive and tailored solution that matches the challenges set by each client’s unique circumstances and complies with all applicable rules from the start. Then, throughout the full lifetime of the insurance, we ensure it continues to meet every client’s objectives, no matter where they choose to live.
Our wealth transfer solution benefits financial advisers too, providing them with opportunities to meet with clients, strengthen relationships and connect with other family members. And the quality of our services and solutions delivers the competitive advantage that helps them win and retain high-value client business.
To find out more about how we can help high net worth individuals protect and transfer their wealth, contact firstname.lastname@example.org.
*Wealth-X and NFP, A report on family wealth transfer 2016.