Legacy Planning is the strategic approach to ensure your assets seamlessly transition to your loved ones after you're gone. Through effective legacy planning, you can prioritise leaving a meaningful legacy while still maintaining ample funds for a comfortable retirement, allowing you to cherish your golden years. One way to do this is through life insurance.
Illustrating Legacy Planning: The Lim Family Story
Imagine the Lims, a family running an upscale fashion brand, with assets of S$15 million - S$5 million in the business and S$10 million in cash. Their goal is to ensure that each of their 3 children receive S$5 million after they’re gone. The legacy planning solution involves using S$2 million for a life insurance policy with sum assured of S$10 million on Mr. Lim. This strategy ensures a well-thought-out distribution:
- Upon the death of Mr. Lim, the two children not involved in the business will receive S$5 million each, ensuring their financial security.
- The third child, actively engaged in the fashion business, inherits the $5 million business, continuing the family legacy.
This legacy planning not only ensures an equitable and secure future for each of their children but also allows a comfortable retirement for them with S$8 million.
