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New Manulife and Deloitte Report : Over Two Thirds of High Net Worth Individuals in Greater China Consider Insurance Essential for Legacy and Succession Planning

Insurance is becoming a core component of wealth management strategies for high-net-worth individuals.

20% of respondents have not integrated insurance into their asset portfolios.

Insights from the Survey

Understanding the Role of Insurance in Wealth Management

Manulife Hong Kong, in collaboration with Deloitte, has conducted a survey to provide insights into the role of insurance in wealth management for high-net-worth individuals. The survey aimed to understand the current trends and practices of insurance integration in the portfolios of these individuals.

Key Findings

  • Insurance as a Core Component: 70% of respondents have integrated insurance into their asset portfolios, indicating that insurance is becoming an increasingly important component of wealth management strategies. Asset Allocation: 30% of respondents are allocating 11% or more of their assets to insurance products, suggesting that insurance is being used as a diversification tool to manage risk and increase returns. Insufficient Integration: 20% of respondents have not integrated insurance into their asset portfolios, highlighting the need for more effective communication and education on the benefits of insurance in wealth management. ## The Benefits of Insurance in Wealth Management**

    • The Benefits of Insurance in Wealth Management

    Diversification and Risk Management

    Insurance can provide a range of benefits to high-net-worth individuals, including diversification and risk management. By allocating a portion of their assets to insurance products, individuals can:

  • Reduce Risk: Insurance can help mitigate potential losses and protect assets from unforeseen events. * Increase Returns: Insurance can also provide a source of returns, such as dividends or interest, which can help increase overall portfolio returns. ### Tax Efficiency and Liquidity**

    • Tax Efficiency and Liquidity

    Insurance products can also offer tax efficiency and liquidity benefits, making them an attractive option for high-net-worth individuals.

    The Importance of Insurance in Legacy and Succession Planning

    Insurance plays a vital role in legacy and succession planning, allowing individuals to ensure that their assets are protected and transferred to their loved ones after they pass away. This is particularly important for business owners, who often have significant assets and liabilities that need to be managed and transferred.

    Types of Insurance Used for Legacy and Succession Planning

  • Life insurance: provides a tax-free death benefit to beneficiaries, which can be used to pay off debts, cover funeral expenses, and support dependents. Medical insurance: helps to cover medical expenses, ensuring that loved ones are not burdened with financial stress in the event of a serious illness or injury.

    However, insurance can provide a tax-efficient way to transfer wealth to the next generation.

    Understanding the Role of Insurance in Legacy Planning

    Key Benefits of Insurance in Legacy Planning

  • Tax Efficiency: Insurance can provide a tax-efficient way to transfer wealth to the next generation. Flexibility: Insurance policies can be tailored to meet the specific needs of the individual or family. Protection: Insurance can provide protection against unforeseen events, such as illness or death. #### How Insurance Can Mimic Key Features of Will, Family Trust, and Limited Power of Attorney**

    • How Insurance Can Mimic Key Features of Will, Family Trust, and Limited Power of Attorney

    Insurance can mimic some key features of will, family trust, and limited power of attorney. For example:

  • Beneficiary Designation: Insurance policies can be designed to name beneficiaries, similar to a will. Trust-like Structure: Insurance policies can be structured to provide a trust-like benefit to beneficiaries. Limited Power of Attorney: Insurance policies can be designed to provide limited power of attorney to beneficiaries. #### Overcoming Jurisdictional Barriers to Legacy Planning**

    • Overcoming Jurisdictional Barriers to Legacy Planning

    In certain jurisdictions, tax can be a barrier to legacy planning. Tax-Efficient Transfers: Insurance policies can be designed to provide tax-efficient transfers of wealth to beneficiaries.

    Tailored wealth management for the unique needs of High Net Worth Individuals.

    Understanding the Needs of HNWIs

    Manulife recognizes that each HNWI is distinct, with their own set of financial goals, risk tolerance, and values. To address these differences, the Private Client Wealth Planning team employs a tailored approach, taking into account the client’s individual circumstances, family dynamics, and long-term objectives. This personalized approach enables the team to develop customized financial plans that cater to the unique needs of each client. Key considerations for HNWIs include: + Preservation of wealth + Accumulation of wealth + Transfer of wealth + Tax efficiency + Risk management + Family dynamics and succession planning

    A Holistic Approach to Wealth Management

    Manulife’s Private Client Wealth Planning team takes a holistic approach to wealth management, considering the interconnectedness of various financial, tax, and estate planning aspects.

    42% worry about the impact on their relationships with family members. 39% fear that wealth distribution may lead to family conflicts. 36% are concerned about the potential impact on their relationships with family members. 35% worry about the potential issues such as poor financial planning, lack of investment knowledge, excessive spending.

    59% value their personal freedom and autonomy. 55% believe that their health and well-being are essential to their overall quality of life. 49% consider their financial security and stability as crucial to their well-being. 46% believe that their social connections and relationships are vital to their quality of life. 44% prioritize their education and personal development. 42% value their leisure time and hobbies as important to their quality of.

    Our commitment to innovation, customer satisfaction, and community involvement has enabled us to establish a strong presence in the region.

    A History of Excellence

    Manulife Hong Kong has a rich history that spans over a century. From humble beginnings as a small insurance company, we have evolved into a leading financial services provider. Our journey began in 1897 when we started our operations in Asia.

    Manulife is a global company with operations in over 30 countries, offering a wide range of financial products and services.

    Our History and Mission

    Manulife’s history dates back to 1887, when it was founded in Toronto, Canada. The company’s name is derived from the Manchurian wolf, a symbol of strength and resilience.

    Our services include audit, tax, consulting, and financial advisory services.

    Our Services

    Deloitte China offers a wide range of services to meet the diverse needs of our clients. Here are some of the key services we provide:

  • Audit services: We help clients improve their financial reporting and internal controls, ensuring compliance with regulatory requirements.

    The Deloitte brand is built on the values of integrity, diligence, and excellence, which are reflected in our work and our relationships with clients and stakeholders.

    The History of Deloitte

    Deloitte’s history dates back to 1845 when it was founded as a small accounting firm in London. The firm’s early success was built on its commitment to providing high-quality services to clients.

    Deloitte Asia Pacific Limited is the regional hub for Deloitte Private in Asia Pacific.

    The Rise of Private Wealth Management

    In recent years, the wealth management industry has experienced significant growth, driven by increasing demand for bespoke services catering to high-net-worth individuals and families. This shift has led to the emergence of private wealth management firms, which offer tailored solutions to meet the unique needs of these clients.

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