Strengthen your legacy planning strategy with Sun Life Singapore’s SunBrilliance Indexed Universal Life

The COVID-19 pandemic and recent global market volatility have underscored the importance of safeguarding the future and planning for life’s unpredictable circumstances. 

With erratic macroeconomic conditions making intergenerational wealth transfers more complex, many individuals are now exploring alternative asset classes beyond the traditional choices of equity, bonds and real estate. Among the emerging wealth planning options, life insurance solutions are gaining traction as an attractive route for high-net-worth (HNW) individuals. 

To cater to growing demand, Sun Life Singapore has launched SunBrilliance Indexed Universal Life, an innovative life insurance solution pegged to the S&P 500 index that strikes a balance between long-term protection and growth. Sun Life Singapore is a branch of Sun Life Assurance Company of Canada, an international financial services organisation providing asset management, wealth, insurance and health solutions.

FINDING THE MIDDLE GROUND BETWEEN COVERAGE AND RETURNS

According to Mr Michael Wei, Sun Life Singapore’s chief partnership and marketing officer, indexed universal life policies have generated much interest from clients in Asia in recent years. Their main appeal lies in how they incorporate both insurance protection and potential investment gains linked to the performance of an index such as S&P 500, a widely recognised benchmark for the US stock market. 

To foster confidence during market uncertainties, SunBrilliance Indexed Universal Life offers a protective barrier against losses with a 0 per cent per annum floor on the indexed account return and a minimum guaranteed 2.5 per cent per annum crediting rate for the fixed account in the first 20 years. 

“This downside protection element provides a high level of security, making SunBrilliance Indexed Universal Life an attractive proposition that adds an alternative dimension to overall portfolio diversification and wealth planning,” said Mr Wei.

To maximise returns, SunBrilliance Indexed Universal Life has two indexed accounts that are linked to the S&P 500 index, with the indexed multiplier account offering Singapore’s highest multiplier rate at 120 per cent. 

Risks are mitigated through dollar cost averaging, which distributes the premium allocated to the indexed accounts to create index segments over 12 months. 

The product also allows clients to customise their premium amount and allocation among fixed, indexed multiplier and optimum accounts, depending on their risk appetite. After the first policy year, clients have the option to adjust allocations or update the life insured. This positions SunBrilliance Indexed Universal Life as a flexible legacy planning solution, capable of accommodating the changing needs of clients over time.

VALUES-DRIVEN LEGACY PLANNING

HNW and ultra-HNW (UHNW) individuals acknowledge the responsibility that comes with wealth transfer and deem imparting values as integral to their legacy. SunBrilliance Indexed Universal Life has a first-in-market option called Legacy Plus that facilitates this by allowing beneficiaries to receive the death benefit in yearly payouts for up to 10 years. 

Said Mr Wei: “We believe that the Legacy Plus option will enrich and deepen conversations on wealth planning and charitable giving. The phased payout offers greater peace of mind for both clients and their beneficiaries.”

Under the new Sun Life Singapore Philanthropic Pledge launched with SunBrilliance Indexed Universal Life, Sun Life Singapore will donate up to 0.5 per cent of the premiums received from SunBrilliance Indexed Universal Life – with a cap of US$20,000 (S$27,000) – through Community Chest. This will aid various Singapore-based charity programmes, including those focused on Type 2 diabetes prevention and care, mental wellness, diversity, equity and inclusion, and disaster relief. 

In recognition of its significant influence, the Sun Life Singapore Philanthropic Pledge was awarded the Most Impactful CSR Initiative at the Insurance Asia News Country Awards for Excellence 2023 (Singapore). Said Mr Wei: “Our pledge was envisioned as a giving initiative that would allow us to make an accelerated impact on the community. We hope this inspires our clients to become advocates of philanthropy and give back to society.” 

Mr Karim Gilani, president of Greater China, Singapore and International HNW at Sun Life, added that the launch of SunBrilliance Indexed Universal Life represents a series of pioneering milestones in the Singapore market. Notably, Sun Life is the first insurance company to integrate upfront charitable giving into its life insurance solution. 

“SunBrilliance Indexed Universal Life’s innovative features and benefits were made possible by our resolve to improve the status quo, innovate and be open to feedback from our business partners and clients,” he said. “I am gratified that we are establishing a new standard in reshaping the landscape of HNW insurance solutions.” 

Visit Sun Life Singapore to find out more about SunBrilliance Indexed Universal Life. 

*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 (if any) may be less than the total premiums paid. This information advertisement is for general information only and does not take into account the specific investment objectives, financial situation or particular needs of any specific person. 

Sun Life is not responsible for any losses based on the contents of this document alone. You should seek advice from a financial adviser regarding the suitability of the policy before making a commitment to purchase. In the event that you choose not to do so, you should consider whether the product in question is suitable for you before purchasing it. 

This information advertisement is not a contract of insurance. Refer to the policy contract for the exact terms and conditions, specific details and exclusions. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is correct as of September 2023. 

Read the full disclaimer here.