Guide to HNW Life Insurance
Jul 15, 2021
Life insurance is an integral part of High Net Worth wealth management. It is a unique tool that can provide true peace of mind, helping HNW individuals to build and safeguard their wealth for generations to come. This practical handbook is designed to help provide Financial Advisors with a general understanding of the key dimensions of HNW life insurance and how to apply it in practice. It is brought to you by Hubbis and Transamerica Life Bermuda’s Mastering High Net Worth programme.
I am very pleased to be introducing this guide as the new CEO of Transamerica Life (Bermuda) Ltd. (TLB), a leading HNW life insurer. I feel very privileged to be stepping into the role at this time, with the many challenges and opportunities that lay ahead of us, this promises to be an exciting journey!
Since the launch of the inaugural edition of the Hubbis’ “Guide to HNW Insurance – a Practical Handbook for Financial Advisors” (the “Guide”) in 2020, our lives and the world around us have undergone dramatic changes. The effects of COVID have been felt worldwide and have had significant knock-on effects to financial markets, as well as profoundly impacting the way we live, work, and interact with one another. Over the last year, the financial markets witnessed incredible volatility, which to an extent, remains even now. The lockdowns created significant travel and personal restrictions, but technology- based solutions have helped to mitigate the gap in our need for interaction. Without a doubt, COVID was and continues to be a massive accelerator of change.
We have seen more optimism lately as COVID-19 vaccines have rolled out across the world, which will hopefully lead to the easing of travel restrictions and a semblance of “normal” life starting to re-emerge. Whilst uncertainty remains, one thing remains certain - the “new normal” will be quite different to what we were used to prior to the pandemic. With the acceleration of change created by COVID, new opportunities have and will continue to be created, particularly in the resilient part of the life insurance market in which we operate.
Despite the pandemic, the HNW and Ultra High Net Worth (UHNW) population remained robust, growing by nearly 8% in 2020, and Asia-Pacific remains one of the world’s fastest growing major regions for HNW individuals1. In the past year, we have seen increased awareness from HNW individuals (HNWIs) in the areas of health, longevity, and legacy planning. According to a recent study by UBS, 51% of HNWIs were worried about healthcare costs increasing, 65% were concerned that their retirement may be impacted by Covid-19, and 54% were worried that they wouldn’t be able to leave enough money to their heirs. The result is that many HNWIs are now looking at life insurance as part of their overall protection and wealth management plans. Moreover, HNWIs who are business owners are also continuing to look to life insurance for business protection, including partnership coverage and insuring key employees in the event of an unexpected death.
At TLB, we believe tremendous opportunities lie ahead for both the HNW life insurance industry and the customers we serve. The financial needs of HNWIs have not changed during this time of economic uncertainty. In fact, with increased awareness, the demands for financial solutions to help protect and maximise financial legacies are greater than ever. With a changing and volatile environment comes the desire for certainty; and life insurance is a perfect vehicle to provide that certainty as well as peace of mind.
It is therefore, my great pleasure to be able to share with you the updated Hubbis’ “Guide to HNW Insurance – a Practical Handbook for Financial Advisors (2021)” sponsored by TLB’s Mastering High Net Worth (MHNW) program.
Covering wide-ranging topics, this Guide is designed for financial advisors with the aim of providing an overview of the key dimensions of HNW life insurance and practical applications. Starting with the needs of HNW customers, it also covers a discussion of the types of life insurance products available and how these can be utilised to meet the different HNWIs’ requirements. We sincerely hope that this Guide provides an enjoyable and easy read, whilst also serving as a valuable reference tool for our partners and other financial professionals.
We look forward to working with our valued partners as we continue on our journey of helping to safeguard our customers’ wealth for generations to come.
Transamerica Life Bermuda