After accumulating wealth during your lifetime, it’s natural to desire a fortified financial legacy. With it, you can enjoy the fruits of your labour, protect your loved ones tomorrow and leave your children and grandchildren an estate as a symbol of love and support for the pursuit of their aspirations. 

Legacy planning is a broad term which includes your estate plan – how your wealth and businesses will be transferred after your death – and instructions on your medical care should you lose your mental capacity one day.

As you formulate your legacy plan, here are some key questions to consider regarding your wealth and how you wish to distribute it among your loved ones.

Do you have a good mix of liquid and illiquid assets?

Liquidity refers to how quickly an asset can be converted into cash without losing excessive value. A strong legacy plan has both liquid and illiquid assets. 

Should your end-of-life care incur large medical bills, your family can dip into your liquid assets to finance these. Meanwhile, they can continue holding on to your illiquid assets such as real estate properties and art collections, which tend to appreciate in value over time.  Owning life insurance policies is one way of giving your family access to cash (liquid asset) to pay for such large sum expenses after your death.

Is your estate diversified between different risk assets?

To safeguard your estate, your investments should be distributed across different financial instruments which come with various degrees of risk and potential returns. Other than leveraging stocks and bonds, real estate and business investments, certain life insurance policies can offer attractive payouts with relatively low risk.

During your retirement, will you have regular income streams so that you can afford to let the investments in your estate continue growing?

Planning regular income streams to support your daily living expenses during retirement spares you from having to liquidate your investments to maintain your lifestyle. This way, your investments can continue growing, perhaps even beyond your lifetime for your family’s benefit. Certain life insurance policies provide you with lifetime monthly cash payouts to fund your retirement in your golden years.

Do you aspire to let your wealth also benefit your future generations?

Are you aware that you can purchase life insurance and gift them to your children once they turn 21 so that they can enjoy the benefits of the policy (e.g. monthly payouts) as they experience their own milestones in life? Furthermore, upon their departure, the policy gives a lump sum payout to their children as inheritance.

To illustrate, 40-year-old Diana purchases a whole of life policy with her 5-year-old daughter Sarah as the life insured. The policy gives Diana a monthly income until Sarah turns 21. At age 21, Sarah takes over the policy ownership and enjoys monthly payouts for the rest of her life. After Sarah’s death, the policy’s death benefit gives her child a lump sum cash payout. In other words, Diana’s life insurance policy can benefit three generations. Leveraging such instruments is a powerful way of letting your financial legacy last beyond your children’s and your lifetime.

Financial assurance for your lifetime and beyond 

To empower those looking to protect their lifestyles in their golden years and to pass on a gift of love to their next generations, Etiqa has launched a new product, Esteem income (USD) in our suite of premier solutions.

With a single premium payment, you will…

• Receive lifetime monthly income starting from the end of the 13th policy month until the policy matures (when life insured turns 125 years old)
• Enjoy the flexibility to alternatively choose to accumulate the monthly income with Etiqa at a non-guaranteed interest rate
• Enjoy the option of gifting your policy to your child once they turn 21, subject to Etiqa’s approval
• Feel assured with guaranteed immediate liquidity of at least 80% of the single premium paid from day 1
• Have lifelong protection against death and terminal illness

Learn how you can fortify your legacy planning through the generations.

Important Notes:

Age means the age at next birthday. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K).

This content is for reference only and is not a contract of insurance. Full details of the policy terms and conditions can be found in the policy contract. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC web-sites (www.lia.org.sg or www.sdic.org.sg).

This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is accurate as at 30/05/2024.