A Latin American client case study
AmiLife FlexPlan, a “Single Premium Life Insurance Policy,” is ideal for estate and succession planning for UHNWIs and families.
Amicorp has been offering FlexPlan to Amicorp’s client base since last year. Due to the interest and demand we are also offering FlexPlan to your clients as well.
Unlike other life insurance policies on the market it can accommodate any assets – liquid and non-liquid including private companies, etc., making FlexPlan an innovative wealth planning solution for your clients.
FlexPlan is a wealth planning solution relevant to clients globally – but is particularly attractive to your client base in Asia, Latin America, the Middle East and Africa. It is essentially a transparent investment-linked life insurance policy, but with interesting and flexible features which are not common to other SPLI products. What stands out is that unlike traditional investment-linked life insurance, FlexPlan allows the policyholders (individuals, trusts, foundations or corporations) to keep their existing asset management and custodian relationships in place – your client determines their investment strategy, and we can accept non-bankable assets as premium payment on the policy.
FlexPlan allows for a smooth transfer of assets to the designated beneficiaries (or charitable organizations) in accordance with the client’s intentions. The client chooses a suitable premium amount, currency policy, funding method (by transfer of existing portfolio or cash), and nominates the beneficiaries and their respective distribution allocation. Should their families’ circumstances change in the future, clients will be allowed to make adjustments through additional contributions to the policy, partial or full surrender (in the event they need to access the funds), or change the beneficiaries and their respective shares. The beneficiaries will also have a choice to receive the insurance payout in cash or by transfer of the underlying investments of the policy fund.
Key benefits of FlexPlan include:
- A bespoke solution that allows the client to define a legacy plan tailored to their family’s current needs while retaining the flexibility to adjust their plans according to any future changes in the family’s circumstances or in the external environment;
- FlexPlan is a recognized legal format in most countries worldwide;
- Provision for retirement and legacy planning;
- Wealth accumulation and asset diversification;
- Efficient holding of onshore and offshore assets;
- Competitive pricing along with efficient product set-up;
- No medical examination required; and
- Ensures peace of mind for clients when transferring assets as part of their estate planning
- For a high-net-worth individual or entrepreneur, offshore company and/or trust/foundation with a minimum policy amount of USD 1 million;
- Investment risks are borne by the client who will decide the investment strategy, asset manager and custodian bank;
- Premium may be paid in cash or by way of transfer of assets where the allowable assets are cash, marketable securities, hedge funds, structured products, real estate, private equity and shares of privately held companies; and
- Cash needs can be fulfilled during the lifetime of the policy through policyholders loans or partial and full surrender.
Below is a case study outlining a recent transaction and its rationale to highlight to you how this may also apply to your clients’. This client’s advisor approached AmiLife as they were impressed with the considerable flexibility of our product compared to other providers.
A South American entrepreneur would like to bring in funds to grow his private company in South America. A FlexPlan is taken up using Promissory Notes of his company as premium payment. This allows the client to invest funds outside of his home country into his key business in his home country.
Client invests in FlexPlan. AmiLife invests in bonds issued by private companies using Promissory Notes.
- Insurance policy when paired with trust arrangement allows for succession planning, asset protection, financial privacy;
- Depending on LatAm jurisdiction, purchasing bonds or debentures issued by private companies does not require approval from that jurisdictions foreign investment body;
- Disclosure and reporting is for the Insurer only; and
- Such a solution most probably applicable to most jurisdictions in Latin America.
Structure of Proposal:
For further information, feel free to contact us directly for further information, or to request various materials on FlexPlan, whether brochure, client presentation, application form, general conditions, technical fact sheet or summary of fees and charges.
You can also view our brief 4 minute video on AmiLife FlexPlan here: http://www.amicorp.com/services/amilife-flexplan.php