From one policy to multiple investments, how did Hong Kong insurance do it?

In the configurationHong Kong insuranceWhen it comes to policy splitting, policy splitting serves as an important strategy that offers policyholders the possibility to break up the original policy into multiple parts according to their individual needs and goals, thus realizing theMore flexiblecap (a poem)personalizedof wealth management and insurance planning.

In this article, we will provide a comprehensive analysis of the concept of policy splitting, the benefits it brings and the specific applications in different scenarios.

01

Policy Splitting Overview

Policy splitting is the process of splitting the original policy according to the cash value at the time, according to the wishes and needs of the policyholder.The process of breaking down into multiple policies.

02

Benefits of policy splitting

1.Flexible asset allocation
Policy splitting enables investors to break down the original policy into multiple parts and make investment allocations independently according to their financial objectives and risk appetite. This increases the choice of asset classes and the flexibility of investment strategies, helping to achieve diversified asset allocation and succession planning.

2. Optimizing the effectiveness of protection
Reasonable policy splitting can optimize the insurance plan and improve the insurance coverage. Investors can adjust the insurance liabilities according to their personal needs to ensure a broader insurance coverage that better matches their risk tolerance and protection needs.

3. Reduced insurance costs
In some cases, policy splitting can help reduce insurance costs. By breaking up the original policy, investors can choose an insurance plan that better meets their actual needs, thus avoiding the wasted costs associated with purchasing too many unnecessary insurance liabilities.

4. Facilitated succession arrangements
Policy splitting provides more options and possibilities for wealth inheritance. Depending on the family situation and financial goals, investors can break down the original policy into multiple parts and give one or more of them to their family members as a gift or inheritance to realize a more reasonable wealth transmission and inheritance arrangement.

5. Improving insurance efficiency
Policy splitting improves insurance efficiency and avoids unnecessary waste and duplication. Investors can choose different insurance plans according to their actual needs and adjust their insurance liabilities, thus realizing accurate and efficient insurance planning.

03

Scenario Analysis and Case Study

👉 Cross Currency Allocation

After splitting the policy, using the currency conversion function, you can allocate your wealth into multiple currencies to achieve a diversified layout of assets and risk diversification.

For example, Marco sought better asset allocation and investment returns by splitting the policy and converting some of it to sterling to accommodate his plans to move to the UK.

👉 Retirement Planning and Succession

Entrepreneur Mike achieved the dual goals of retirement planning and wealth transfer by splitting a $200,000 policy and giving a portion of it to his family as a gift.

👉 Planning for the second child reserve

By splitting her original multi-currency plan policy to provide protection for each of her two children, a baby mama has flexibly responded to the need for reserve planning for her second child.

Policy splitting as a flexible insurance strategy.Provides investors with more options and possibilities.When purchasing Hong Kong insurance, combined with policy splitting strategies, policyholders can achieve more accurate and effective wealth management and insurance planning.

If you want to know more about Hong Kong insurance, please feel free to contact us!