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Top concerns customers have about wealth transfer

Top concerns customers have about wealth transfer

  • 19 November 2019
  • By OCBC Silver Years
  • 10 mins read

The following are some of the top wealth transfer concerns our customers have:

  1. Some customers are very asset rich, but cash poor, in that most of their wealth is locked up in illiquid assets like properties, collectibles, businesses and even complex financial assets that may take time to unwind. Should they pass on, it may require some time before their loved ones are able to unlock the value of these assets. In other instances, the customer may want the next generation to hold on to these assets for familial or sentimental reasons, as opposed to liquidating them for a quick buck.

  2. Some customers may have huge debt liabilities such as property loans that they have yet to settle. In these cases, they may not want the next generation to share their debt burden in the event of their passing.

  3. Some customers have conflicting goals – they would like to retire comfortably and yet have enough to pass on to the next generation as a substantial bequest. However, to do one may necessarily mean sacrificing the other.

  4. Some customers are faced with businesses and assets that cannot be divided easily. Hence, they may not be able to fairly distribute their estate to their heirs.

  5. Others may be concerned about protecting the value of their assets during a market downturn. These customers would like to better secure the amount of estate benefit that they can pass down to their successors.

Often, these concerns can be addressed with an insurance product like universal life. The beauty of universal life is that it can help to create more liquid assets to facilitate the distribution of the customer's estate according to his/her wishes. The guaranteed sum assured from a life policy may also be distributed sooner to the customer's beneficiaries to tide them over the short-term, while they proceed to unwind the deceased's estate.

These plans, however, can be expensive. Hence, from an advisory perspective, we have to understand the full extent of the customer's financial situation along with their assets and liabilities, before drawing up an effective wealth transfer plan.

This document is for general information only and it does not take into account your particular investment and protection aims, financial situation or needs. Before you make any investment, you should speak to a financial adviser who will assess whether the products are suitable for you based on your investment objectives, financial situation or needs. If you choose not to get advice from a financial adviser, you should consider whether the products are suitable for you.

Insurance policies will be underwritten by The Great Eastern Life Assurance Company or The Overseas Assurance Corporation Limited, each a wholly-owned subsidiary of Great Eastern Holdings Limited and a member of the OCBC Group, and are not bank deposits or obligations of, or guaranteed by OCBC Bank.

Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than the total premiums paid. It is usually detrimental to replace an existing accident and health policy with a new one. A penalty may be imposed for early policy termination and the new policy may cost more or have less benefits at the same cost. You may wish to seek advice from a financial adviser before making a commitment to purchase a life policy. In the event that you choose not to seek advice from a financial adviser, you should consider whether the life policy in question is suitable for you. This document is not a contract of insurance. It does not constitute an offer to buy an insurance product or service. The specific terms and conditions of the plan are set out in the policy documents. A person interested in the insurance policies should read the product summary and benefit illustration (available from OCBC Bank) before deciding whether to buy this product. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. If you decide that the policy is not suitable after purchasing it, you may terminate the policy in accordance with the free look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy. No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OCBC Bank and it should not be relied upon as such. OCBC Bank does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. All information presented is subject to change without notice. OCBC Bank shall not be responsible or liable for any loss or damage whatsoever arising directly or indirectly howsoever in connection with or as a result of any person acting on any information provided herein.

Policy Owners’ Protection Scheme The insurance plans are 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 websites ( or ).

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