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Universal Insurance

If you’re an Australian, by setting up a trust, you may lower your tax liability as beneficiary (becoming a Singapore Tax Resident), as they are non taxable. We understand that’s a really important factor as a businessman / investor. That’s why we offer the following to better move things forward.

  • Create business protection and succession planning if keyman has unforseen accident
Scenario Base

Mr James, aged 40, is a businessman who has total current assets of US$10 million. He wishes that his wife and children inherit his assets upon his passing. In order to leave adequate assets for each of them, Mr James uses life insurance to amplify his wealth.

  1. Based on this, Mr James was able to qualify for a US$5 million, standard non-smoker, Universal Life policy and he used US$1,000,000 of his cash assets to purchase the policy and guarantee the sum assured for his lifetime
  2. Upon his death, the US$5 million sum assured will be paid out to his family
  3. Using US$1,000,000 of his cash assets to purchase a Universal Life policy with a sum assured of US$5 million, and assuming that all other assets do not change in value over time, Mr. James has amplified his wealth from US$10 million to US$15 million at the time of his death
  4. Besides enhancing your wealth, life insurance can add necessary diversification to your financial portfolio, as well as ensure immediate liquidity for your beneficiaries.

At Paul Hype page & Co our Chartered Accountant is able to provide an independent and tax efficient financial advise on Universal Life Insurance is an insurance product that encompasses the flexibility of both whole life and term life insurance. It is a combination of the building up cash value like whole life insurance and the adjustable premiums of term life insurance. It provides greater flexibility in premium payments together with a higher growth of cash values.

Protect & Enhance - Protect Wealth asset with sum assured coverage -Enhance wealth through growth of cash values

Protect your assets and enable an equitable distribution of your wealth

With the success you enjoy today, your wealth is likely to comprise several assets such as property, equities and a family business. How do you ensure a fair and harmonious distribution of wealth to address your legacy planning needs?

universal life chart 1

Without Universal Life Insurance

In the event of a financial crisis, and should Mr. Ong pass on, his assets would be significantly affected and his family may come under pressure to liquidate part of his investments and property, which would result in a great loss of value of their father’s legacy.

universal life chart 1.1

With Universal Life Insurance

Mr Peter Chan purchases a Bespoke Universal life Policy for US$3m when he turns 50. When he passes on, his family will receive insurance proceeds of US$10m – which provides cash flow to support the family business in the short term.

universal life chart 1.2

Furthermore, these insurance proceeds enable Mr Peter Chan’s family to maintain an optimum lifestyle, without having to force-sell or liquidate his assets at a time when market conditions are far from ideal.

Preserve & Transfer - Preserve wealth assets regardless of economic conditions -Transfer to heirs equitably

Mr Ethan Koh has 3 children. His second son and his daughter have established careers outside the family business. Only his eldest son is interested in taking over the family business to run it. His daughter is married and lives in her family home so that she can take care of her parents. These conditions make it complicated for Mr Ethan Koh to ensure a fair and equal distribution of his wealth after his passing.

universal life chart 2

Mr Ethan Koh purchase a Bespoke Universal Life policy at the age of 50 which provides an immediate estate of US$10m with a single premium of US$3m for estate planning purpose. Thus boosts the total value of his assets, and facilitates the equal distribution of US$8m to each of his three children from the insurance proceeds.

universal life chart 2.1

universal life chart 2.2