Data & Analytics Working Group | Transamerica Life Bermuda launches universal life legacy that extends legacy planning across four generations

Press Release

Published January 25, 2018

Transamerica Life Bermuda launches universal life legacy that extends legacy planning across four generations

Date: January 25, 2018
Categories: Consumer Analytics, Customer Relationship Management, Data & Analytics, Deposits and Liabilities, retail
Keywords: Transamerica Life Bermuda

Transamerica Life (Bermuda) Ltd.recently launched its new universal life plan, Universal Life Legacy. Aimed at wealth transfer and retirement planning, the product enables High Net Worth (HNW) individuals to maintain their quality of life after retirement with regular income payments, whilst also ensuring a successful wealth transfer. It comes with an enhanced feature called the “Generational Transfer Option” that allows HNW individuals to extend their legacy planning to as many as four generations.

While Asia-Pacific retains its position as the leading region for HNW population and wealth and is on track to surpass US$40 trillion in HNWs’ wealth by 2025, nearly half of the region’s HNWs do not have a retirement plan in place. Despite the diverse range of universal life policies available in the market, family wealth transfer and succession planning remain the top two concerns for HNW individuals.

Recognising the need for effective wealth transfer products in the region, Universal Life Legacy provides policyholders with peace of mind and added assurance that their wealth can be passed on to up to four generations with the Generational Transfer Option.

“In Asia, there is a huge emphasis on family values and responsibility. As such, the region’s wealthy often take it upon themselves to provide for their family and for future generations. Over the last few years, we have had a number of clients who have expressed interest in extending their legacy planning to more generations,” said Transamerica Life Bermuda’s President and Chief Executive Officer, Marc Lieberman. “The launch of Universal Life Legacy is a result of this market demand as we continue to provide our clients with options that enable them to successfully and effectively manage and transfer their wealth, while having the assurance of a lifetime’s income payments following their retirement.”

One Policy, Four Generations

Universal Life Legacy not only provides regular monthly or annual income payments starting from the fifth policy year, it also has an enhanced feature that extends wealth transfer for up to four generations. The Generational Transfer Option allows HNW individuals to change the insured in the policy once.

Mr Wong purchases Universal Life Legacy policy with his son David as the insured

Mr Wong receives the annual income payments* starting from the end of the 5thpolicy year
He then assigns the ownership of the policy to David. David becomes the owner of the policy
David starts to receive the income payments* per year

When David’s son, Albert, has turned 10 years old, David decides to exercise the Generational Transfer Option

Albert becomes the insured under the policy – insured changed
David continues to receive the income payments* per year

When Albert has grown up, David assigns the ownership of the policy to Albert. Albert becomes the owner of the policy

Albert starts to receive the income payments* per year
Albert’s son receives a guaranteed death benefit when Albert passes away

*The amount of income depends on the crediting interest rate on the account value of the policy which is guaranteed to be no less than 2% per annum.

Besides the Generational Transfer Option, Universal Life Legacy’s key benefits also include the following:

One time Commitment

A single premium paid up front, at a minimum of US$1,000,000
No further commitment required

Lifetime Income

Starting from the 5th policy year, owners can enjoy regular monthly or annual income payments
Guaranteed crediting interest rate of no less than 2% per annum

Effective Wealth Transfer

The death benefit will be passed onto the designated beneficiary upon the death of the insured or the second to die in the case of joint insureds

Guaranteed Issuance

The policy can be issued irrespective of the insured’s health condition

High First Day Cash Value

The first day cash value is 80% of the single premium paid to maintain a high level of liquidity

Safeguard the Family’s Income

Utilising the joint life and joint ownership feature of Universal Life Legacy, the owner or joint owners are assured of a lifetime income for their family

“We expect the Generational Transfer Option to play an important role in structuring a successful wealth transfer and believe that the launch of Universal Life Legacy comes at a time when the appetite for effective retirement and legacy planning in the region is greater than ever. As we continue to have a strong focus on Asia’s HNW segments, our products will cater to this market’s needs, demonstrating our commitment to our clients,” said Lieberman.

Re-disseminated by The Asian Banker