Achieving financial security independently is the No 1 priority for most people today. One recent South China Morning Post poll found that, when it comes to financial goals, most respondents prioritise the present, with “ageing gracefully and with dignity” the runaway No 1 wish of 64 per cent of them. This was followed by “providing an inheritance for family” (23 per cent) and “supporting causes I care about” (13 per cent).
The same poll found that most of the people who have considered legacy planning want to prioritise family needs, with nearly 58 per cent choosing it as their top choice. “Personal accomplishments” came second at 29 per cent, while more than 13 per cent of respondents chose “charitable causes”.
The poll results suggest that a significant number of respondents believe legacy planning involves more than simply passing on wealth to their loved ones; it also encompasses living life to the fullest.
Yet the concept of family has been evolving, too. More people may be in a long-term relationship, but are not considering marriage, but naturally, they still hope to have their chosen loved ones considered in their legacy planning.
However, the shifting attitudes about insurance policies and legacy planning highlighted by the survey have not gone unnoticed by the insurance industry. One new product reflecting these changes in people’s priorities has been recently launched by Chubb Life Insurance Hong Kong (Chubb Life HK). The company has had a presence in Hong Kong for the past 90 years – a period that has witnessed changes in attitudes to legacy planning and lifestyle choices.
Belinda Au, president of Chubb Life HK, said: “The concept of legacy is deeply personal and beautifully unique. From passing on skills to the next generation to ensuring that your values live on through your life partner, family or community, each one of us can have many legacies in one lifetime.
“Chubb MyLegacy Insurance Plan III [Chubb MyLegacy III] was designed to break down the barriers that prevent many people from designing their legacy. With transparency, simplicity and flexibility in mind, this plan offers a pathway to turn your values into a vision for a greater future.”
Chubb MyLegacy III allows policyholders the flexibility to choose how to pass their wealth to their selected loved ones, including immediate family members, spouses, legal heirs, cohabiting partners, or fiancées. They can achieve this by either changing the insured individual of the policy or converting a portion of the surrender value into a split policy, for unlimited times.
The policy also satisfies many people’s top financial goal of “ageing gracefully and with dignity”. It allows policyholders to exercise the annuity option up to twice, securing streams of steady income, or receive a fixed monthly annuity income until the age of 120. With the assurance that financial well-being is planned for life, people can then put more attention on causes they care about.
Interestingly, a notable minority of respondents chose “supporting causes I care about” as their top financial goal and “charitable causes” as the first legacy planning priority. This may be because of the increased access to news in the age of advancing information technology. We are much more aware of the plight of people who are disenfranchised, and this may have led to the growing number of people who are considering leaving some of their wealth to worthy causes.
Hong Kong has had a long history of philanthropy and is now home to about 10,000 charities. Donations to charities by Hong Kong individuals approved under salaries tax in the financial year 2020-21 totalled nearly US$1 billion, which shows that Hongkongers not only think about their own well-being, but are also willing to give back to society.
With Chubb MyLegacy III, policyholders have the option to designate a charity or charities as a beneficiary of their policy. In a show of support, Chubb Life HK will make a contribution to the designated charity or charities that matches the life insurance proceeds payable, with the donation capped at US$10,000.
Having lived through the Covid-19 pandemic and experienced the volatility of the global economy, people now recognise the importance of being prepared for unexpected events such as a “black swan” – an extremely low-probability occurrence that turns out to have a huge, often devastating, impact. Geopolitical tensions are also unlikely to go away in the foreseeable future.
However, Chubb MyLegacy III’s flexibility allows policyholders to be prepared for what may arise from such uncertainties when it comes to legacy planning. “Premium holiday” – allowing you to suspend making payments for up to two years – along with a standby regular withdrawal instruction provides steady financial support for the insured in the event of a specific illness, and is built into Chubb MyLegacy III.
A growing global population, increased mobility and technological advances will continue to bring about a faster-changing and more unpredictable world. So being able to stay in the “driver’s seat” – with a financial plan you can adapt to changes in the world and your personal circumstances – is vital for you and those you hold dear, and more important than ever.
Disclaimer:
This article is intended for general reference only and should not be regarded as professional advice, recommendation and it is not part of the policy. It should be read along with other materials which provide details of the product information. Such materials include, but are not limited to, a product brochure that contains the key product risks, policy provisions that contain detailed terms and conditions, benefit illustrations (if any) and other policy documents and other relevant marketing materials, which are all available upon request. You should make your own assessment of the content contained herein. You might also consider seeking independent professional advice if needed. Customers are required to complete a financial needs analysis before applying for an insurance product. Insurance applications are subject to the underwriting decision of the Company. The application of policy change and options are subject to certain conditions under the Policy and approval by the Company at its sole discretion. This article is intended to be distributed in Hong Kong only and shall not be construed as an offer to sell, solicitation or solicitation to buy or provision of any of insurance products outside Hong Kong.