More than half (57%) of high-net-worth individuals (HNWI) in Greater China said they leverage insurance to "facilitate a smoother transfer of wealth to future generations", according to a study by Manulife and Deloitte.
In terms of the most important outcome they hoped to achieve, 64% prioritized “the distribution of their assets in their desired manner to prevent inheritance disputes”. About 67% acknowledged that designating beneficiaries through insurance can help mitigate such conflicts.
“Insurance has evolved from a risk management product to a legacy planning tool highly preferred by our HNWI clients,” said Anthony Lau, Deloitte Private Hong Kong leader. “It mimics some key features of will, family trust, and limited power of attorney, making insurance one of the most accessible legacy planning components.”
By the types of coverage, life insurance was the leader with close to 78% of respondents owning a life insurance policy. This was followed by medical insurance (76%) and savings insurance (60%). 70% also said they have integrated insurance into their asset portfolios with 30% allocating 11% or more of their assets.
“In today’s evolving financial environment, HNWIs are turning to insurance as a key strategic means of achieving financial stability, effectively managing risks, and preserving their legacies,” said Mr Albert Mak, Chief Agency Officer of Manulife Hong Kong and Macau.
The report was developed based on proprietary research and interviews with relevant stakeholders including HNWIs with net assets of at least HK$7.8 million (US$1 million) in the Greater China region, reported Finews Asia.