“Life cover is the foundation of any financial plan”, says Anthony Palmer, Carrick’s Group Commercial Director. And when building anything of value, it is key that your foundation is strong. That includes building wealth.
Palmer stresses that life cover is not about death, but rather about giving investors peace of mind that their families and businesses are secure well into the future. It is about continuity and legacy. And, increasingly, Africa’s High Net Worth Individuals (HNWI) are looking to ensure that their wealth is protected through careful wealth planning. And as Palmer notes, “Now, in light of the global pandemic, succession planning is more crucial than ever.”
But not all life covers are made equal, and it is imperative that investors look to a product that suits their unique financial needs. That is why Carrick Wealth has partnered with leading providers to offer their African clients a flexible whole life cover option that has been designed specifically around the needs of HNWI.
High Value Life Insurance cover starts at US$1 million and can go as high as US$100 million. Currently the product is sold across 150 jurisdictions globally. As the cover is a dollar investment, investors are assured that their wealth is protected from any currency risk and fluctuations that are so prevalent in emerging markets. Palmer says it is the perfect solution for multi-jurisdictional families who own assets across the globe.
In addition, the policy gives investor an enormous amount of flexibility when it comes to premium payments, free partial withdrawals, and top ups, meaning they have the freedom to manage their money to suit their financial needs. As such it can be seen as an alternative asset class which has the ability to generate cash for the investor should they need emergency funds in the future.
Investing in a good life cover policy, though, has additional benefits. Palmer explains that as part of a holistic financial plan, High Value Life Insurance, helps investors plan ahead and ensure their heirs are protected from excessive inheritance and property tax. The policy also allows the investor to extend their legacy beyond their family. As American major general, Chaplain Patrick James Ryan said, “Philanthropy lies at the heart of human greatness”, and by planning ahead, HNWI can guarantee they leave a legacy that benefits their greater communities too.
Life cover can also be incorporated into an offshore trust. “By doing that, you can transfer the ownership of the pay out quickly,” notes Palmer. "This is important as complex estates can take months, if not years to wind up, making this a major benefit of the product. Investors are assured that their families and businesses will always have quick access to funds.
Ultimately underpinning your financial plan with a sound life cover policy is about future proofing your family, business, currency, wealth and status.”