Variable Universal Life (VUL) Predicting the future Creating a tailor-made solution for HNW clients

Size: px

Start display at page:

Download "Variable Universal Life (VUL) Predicting the future Creating a tailor-made solution for HNW clients"

Andrea Mills
5 years ago
Views:

1 Variable Universal Life (VUL) Predicting the future Creating a tailor-made solution for HNW clients

2 Anticipating the future

3 Anticipating sport events World Cup 2014 Mike Tyson

4 Anticipating elections..

5 there is one thing in life you do not need to predict or anticipate and that is Death

6 Common clients concerns Fire Sale Succession Planning Liquidity Concerns Concerns No Planning Market Shocks Family Disputes

7 Did you know? 2 Only 2 of 10 Bank referrals close 8 8 of 10 clients with needs walk away with no solution 95 95% of HNW Life insurance sold in Asia is Universal Life

8 Is this reality?

9 What is Variable Universal Life (VUL) Some differentiating Factors Swiss Life Alpha Plus Universal Life Policy Currency Death Benefit Payment Crediting Rate USD, SGD, HKD, CHF, EUR, GBP, JPY, AUD Cash, or cash plus policy assets (for succession planning and probate bypass) As directed by the Client Predominantly USD Cash only As directed by Insurance company Premium Payment Cash and/or existing bankable assets Cash only (predominantly financed) Asset Management As directed by the Client As directed by Insurance company Policy Asset Allocation As directed by the Client As directed by Insurance company Custodian Bank As directed by the Client As directed by Insurance company

10 From Single Purpose to Multi-Purpose Without VUL With VUL $30M Sum Assured $10M Portfolio Single purpose portfolio 1) Wealth accumulation $10M Portfolio Multi-purpose portfolio 1) Wealth accumulation 2) Wealth protection 3) Wealth distribution Wealth Accumulation Investment portfolio Wealth Protection VUL insurance cover Wealth Distribution Insurance nomination Bypass probate

11 How VUL answers client s concerns? Safeguard your portfolio Flat Market Bull Market + 50% Bear Market - 50% Portfolio Value $20m Unchanged +50% Growth -50% Shrink Without VUL $0 cover Estate value $20m $30m $10m With VUL $5m premium = $15m cover Estate value $15m + $15m = $30m $22.5m + $15m = $37.5m $7.5m + $15m = $22.5m +50% +25% +225%

12 Definition of Tailor-Made Tailor-made tai lor-made (t l r-m d) adj. 1. Made by a tailor. 2. Perfectly fitted to a condition, preference, or purpose; made or as if made to order.

13 Tailor-Made Relationship Manager Fashion consultant/ Style guru working with their client to identify their needs Broker Tailor that customises the suit for the client Swiss Life Cotton mill and cloth maker

of existing assets - Sticky Assets Deepens / Strengthens

Attracts new AUM - Innovative / creative wealth creation

- Guaranteed Cost of Insurance and flat ongoing fees

14 Why Swiss Life? AUM Retention - No outflow for premium payment by transfer of existing assets - Sticky Assets Deepens / Strengthens Client Relationships - Continue to manage existing AUM - Attracts new AUM - Innovative / creative wealth creation approach Predictable Costs - Short surrender charge period - Guaranteed Cost of Insurance and flat ongoing fees Premiums - Premiums aligned with investment risk profile of the client (Note: no minimum guaranteed interest as with UL)

15 Client s expectation

16 Client was offered with

17 Worst case scenario

18 Thank You!

19 We provide your clients with global tailored life insurance with the highest possible adaptability to their needs

20 Disclaimer This document has been established by Swiss Life and cannot be used, copied, modified or distributed without prior consent of Swiss Life. This document is for sales purposes only. It is not a contractual document. The information in this document could change after legal, tax and prudential changes or changes within Swiss Life. Your personal adviser will give you the appropriate information and documents before any application to one of our products. Swiss Life does not give any legal or tax advise. Any comment in this document is based on our assessment of the tax and legal environment and is not thought to be used for tax or other planning. For a detailed analysis of your personal situation and for an advise on our products and their tax treatment we recommend that you ask your own independent advisers Swiss Life Global Solutions 2016

Schroders H1 Results. Data Pack July 2016

Schroders H1 Results. Data Pack July 2016 Schroders 2016 H1 Results Data Pack July 2016 Contents Page Assets under management (AUM) 2 Regional diversification of AUM 3 Gross sales and net flows 4-5 Currency profile of AUM 6-7 AUM diversification