Hong Kong Life
Wealth Succession
HONG KONG LIFE - Wealth SuccessionP.1

What you have today hasn't come easy

The wealth that you have attained is...

a testament to your accomplish-ments
a reward for your hard work
a cornerstone of a comfortable retirement life
a support for your family

Your precious wealth need to be treasured

It's something to pass on to your family, to ensure they live comfortably when one day you're no longer with them.

In the Absence of a Wealth Succession Plan

If misfortune struck, your heartbroken family could face:

Frozen legacy

Frozen legacy

Abrupt loss of support for your family

Unintended allocation

Unintended allocation

Succession arrangements not according to your wishes

Litigations

Litigations

Rifts caused as family members fight over inheritances

Asset depreciation

Asset depreciation

Lengthy and costly lawsuits drain away your legacy

Is this what you want to happen?

What You Should Bear in Mind is...

The probate
process may
end up taking1-3Years
A lawsuit could
last 5–7 years
and include many
complicated
procedures!

What are the preventive measures you can take,
and how would you manage it?

Source : Yip, Tse & Tang Solicitors Website

Common Ways of Wealth Succession

Will

You can make a will through a legal firm, stating how your legacy is to be allocated. Your instructions will be carried out by the executor.

Nominal charge
Nominal charge
Quick
Quick
Asset frozen
Asset frozen
Possibility of the will being overturned
Possibility of the will being overturned
Lack of privacy
Lack of privacy

Trust

Assign a trustee (e.g. a bank) to manage your legacy and allocate to your beneficiaries according to your instructions

No asset frozen
No asset frozen
Allocation of your legacy based on your wishes
Allocation of your legacy based on your wishes
Confidentiality
Confidentiality
High setup cost
High setup cost
Complicated and longer processing time
Complicated and longer processing time
Asset control by the trustee
Asset control by the trustee
Source : Yip, Tse & Tang Solicitors Website

Could Life Insurance Plan Be an Effective Tool for
Wealth Succession?

Lower costs
Lower costs
Wealth passed on to future generations
Wealth passed on to future generations
Lengthy and complicated probate process avoided
Lengthy and complicated probate process avoided
Higher degree of privacy
Higher degree of privacy
Simple yet, reliable with plenty of benefits!

Comprehensive Benefits of Wealth Succession via
Life Insurance Plan

Flexibility in allocation

Flexibility in allocation

Designated beneficiaries and allocation percentages according to your wishes.

Avoidance of conflicts

Avoidance of conflicts

Clear policy terms minimize the possibility of lawsuits due to allocation.

Ownership control

Ownership control

Always in control of assets.

Asset appreciation

Asset appreciation

With a life insurance plan, your asset value and wealth grows over time.

Something Important to Consider:

When you pass away,
would you rather your family...Live without
financial worries?

Or have nothing to
fall back on?

Would you like
your hard-earned legacy to...Become a blessing for
your family?

Or the root cause of
arguments?

Make plans now to let your love carry on.

Life insurance Plan is an ideal tool for wealth succession.

Case Sharing

Mr. Chan

50 years oldOwner of an interior design firm
Married with a daughter and a son
(both working)Monthly salary: HK$180,000
Expected retirement age: 65

Financial state:
  • $5 million in deposit and
  • $5 million in stocks
  • Owned apartment without mortgage
Status
  • Mr. Chan has begun to plan for retirement and wealth succession.
Worries
  • His children have no intention to take over his business. Mr. Chan wants to make his wealth succession plan early to avoid conflicts within the family and quarrels over his legacy.
  • While he currently has HK$10 million in holdings (including bank deposits and stocks), he still needs to consider his post-retirement expenses.
  • Unexpected fluctuations in the stock market could also undermine his retirement plans.
Needs
  • Mr. Chan needs to leave behind HK$5 million when he passes away, to be split equally between his two children.
Suggestion
  • Mr. Chan could consider the life insurance plan of Hong Kong Life's as his wealth succession tool.
  • This example is not intended to constitute a recommendation or advice. Please do not rely solely on this example to make application decision. Before applying insurance plan, you may also seek independent and professional advice.

Case Sharing

Details of Mr. Chan's plan: Wealth succession via life insurance plan

Policy Owner and Life Insured: Mr. Chan
Sum Assured: HK$5 million
Premium Payment Term: Single Premium
Total Premium Paid: HK$1,779,800
Protection for Retirement Equal Wealth Allocation Wealth Appreciation Life Protection
  • This example uses Hong Kong Life's Premier Universal Life plan - Deluxe for illustration.
  • The policy is automatically cancelled when the value of the account equals or is less than zero, or if the policy is surrendered.
  • This example is not intended to constitute a recommendation or advice. Please do not rely solely on this example to make application decision. Before applying insurance plan, you may also seek independent and professional advice.
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Protection for Retirement

  • If Mr. Chan leaves behind HK$2.5 million for each of his children, he will only have HK$5 million for his retirement reserve.
  • However, Mr. Chan only needs to spend around HK$1.7M on a life insurance plan to get HK$5 million in insurance coverage. With this plan, he not only leaves behind HK$2.5 million for each of his children, but can also increase his retirement reserve to over HK$8.2 million.

Total asset amount: $10 million ($5 million in deposit and $5 million in stocks)

$2.5 million
For his son
$2.5 million
For his daughter
$5 million
For his retirement reserve
Paying just around HK$1.7M for an insurance plan with coverage of $5 million.
approx.
32%

Total asset value: Increased to about $13.2 million
(include $5 milion Sum Assured insurance coverage)

$2.5 million
$2.5 million
Designated his son and daughter as
policy beneficiaries with 50% each
Over $8.2 million
For his retirement reserve

*All currency in Hong Kong Dollar

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Equal Wealth Allocation

  • When applying for the life insurance plan, Mr. Chan can clearly name his beneficiaries and set the proportion of the death benefit each of them will receive. If he passes away, the insurance company will pay out the death benefit according to his wishes, thus avoiding family conflicts and possible ligitations.
Over
$8.2 million
as retirement
reserve
$2.5 millionDesignated his son as policy beneficiary
$2.5 millionDesignated his daughter as policy beneficiary
His wish to allocate his wealth
equally is fulfilled.

*All currency in Hong Kong Dollar

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Wealth Appreciation

The plan features a monthly interest payment, including a Minimum Guaranteed Crediting Interest Rate, to help you grow your wealth steadily without fear of market fluctuations.

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Life Protection

The plan offers a life insurance protection amount of HK$5 million to give peace of mind to Mr. Chan's family.

Contact Us

To pass on your wealth and take good care of your loved ones, plan early and let our professional team do an analysis for your financial needs today.

2290-2882

HongKongLifeCS@hklife.com.hk
Disclaimer
  1. This promotional material contains general information for reference and is applicable within Hong Kong Special Administrative Region only. It is also governed by the laws of Hong Kong.
  2. The information provided is based on sources which Hong Kong Life believes to be reliable but has not been independently verified. Hong Kong Life makes no responsibilities nor accepts any warranty or guarantee for the accuracy, completeness and timeliness of the information or for any claims and/or losses caused thereby. Any examples given are for the purposes of illustration only.
  3. This promotional material is not intended to constitute a recommendation or advice to any prospective customer and is not intended as a substitute for professional advice. Please do not rely solely on this promotional material to make application decision. Before applying insurance plan, you may also seek independent and professional advice before making any decision.
  4. In case of any discrepancies between the Chinese and English version, the English version shall prevail.

Issued by Hong Kong Life Insurance Limited

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