Singapore is one of the countries where you can find increasing numbers of high net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). There are insurance plans that offer adequate coverage for their estate and financial solutions to increase their legacy to help them protect their wealth. Heirloom (VII) – Universal Life Insurance plan is in line with protecting your estate and legacy.
Get to know the features and benefits of the Heirloom (VII) plan
With the growing number of HNWIs in Singapore, which is expected to reach 700,000 by 2030, there is a greater need for wealth and estate management, succession planning, and protection solutions. The Heirloom (VII) plan by DBS Treasures is for HNWIs who want to enhance their legacy, protect their wealth, and have suitable liquidity for wealth distribution. Here are the features and benefits of this universal life insurance plan.
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Flexible premium payments
You can pay premiums anytime, with the insurer setting the maximum limits. Nevertheless, an insurance policy owner can stop paying the premium entirely or skip a payment in case of enough cash value in the policy. If the cash value is affected by loans, withdrawals, or lower interest credited, you may be asked to pay an additional premium.
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Death and terminal illness coverage
The universal life insurance plan offers coverage against terminal illness and death. Nonetheless, the death benefit is the value of the policy or face amount of the policy, whichever is higher, at the time of death. Any outstanding policy debt will be set off in this amount. The policy owner diagnosed with a terminal illness before the age of 99 will be paid terminal illness benefits as an “acceleration of the death benefit”.
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Underwriting risk classes
This policy also offers the benefit of six underwriting risk classes, which range from super-preferred non-smoker risk class to standard smoker risk class. The insured will place the policy owner through the underwriting process in any of these classes, which can benefit the insured with lower policy charges if he or she comes under the preferential risk class.
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Quit smoking incentive
This feature is unique to the universal life insurance plan to encourage a healthier lifestyle. It applies to the insured under the preferred or standard smoker class to gain the benefits of standard non-smoker policy charges in the beginning for three years. At the end of policy year three, the policy owner can have the policy reclassified into the standard non-smoker rates based on satisfactory medical evidence that he/she has quit smoking for a minimum of 12 successive months.
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Lower face amount charges
The policy with a face amount greater than or equal to US$10 million attracts lower charges.
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Cash value accumulation with guaranteed crediting interest
With the minimum guaranteed interest crediting and guaranteed loyalty bonus, the policy value is protected. Nevertheless, the crediting of the loyalty bonus begins from the policy year 11 and ends after the 100th birthday of the life insured, before the policy anniversary.
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Penalty-free withdrawals
Partial withdrawals are allowed if requested from the policy year 11, without any penalty like reducing the face amount or incurring surrender charges. The withdrawals will however reduce the face value.
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Can change the life insured
If you want, you can change the life insured after two years from the date of the policy issued. It is up to the insured to accept the new life insured or not.
It’s time that you have your legacy planning with the Heirloom (VII) – Universal Life Insurance plan.