The gift of a lifetime: How early legacy planning empowers the next generation to pursue their dreams
According to HSBC's Quality of Life Report 2024, 56 per cent of affluent individuals believe legacy planning is a meaningful way to express love and support for their family, even beyond their lifetime. However, the report also revealed a striking gap: While 37 per cent of affluent individuals intend to pass down their assets, only two in 100 have planned for all or most of their legacy needs in a holistic manner. This disconnect suggests that while many recognise the importance of legacy – both financial and personal – few have taken concrete steps to put their intentions into action.
Safeguarding your children's future begins with early legacy planning. Besides giving your wealth more time to grow, it also lays a strong foundation for your children to pursue their ambitions with confidence and security.
For many families, life insurance offers an accessible starting point for legacy planning, providing protection while also building a long-term asset. Unlike other legacy planning solutions such as wills or lasting powers of attorney, it serves a dual role: Safeguarding loved ones and supporting long-term wealth accumulation, ensuring continuity across generations.
According to the Quality of Life report, 31 per cent of respondents say they have purchased insurance specifically with inheritance in mind.
Mr Harpreet Bindra, CEO of HSBC Life Singapore, described life insurance as a foundational yet powerful tool for legacy planning: 'For many families, life insurance is a strategic first step. It complements more complex structures such as trusts and can offer greater liquidity, making it an ideal choice for those who want to begin their legacy planning journey with simplicity and ease.'
For many families, legacy planning is about being intentional with what you leave behind, including the values and life lessons you hope your children will carry forward. Half of those surveyed believe that passing on family culture and values is just as important as financial inheritance, highlighting the need for a more holistic and relationship-based approach. Being proactive about financial planning helps families manage wealth while preserving strong relationships.
'Starting early gives families the time and space to think beyond asset distribution – to consider how wealth will be managed, how heirs can be prepared, how business continuity can be safeguarded and how conflicts can be minimised,' added Mr Bindra.
For those ready to take that first step, plans like HSBC Life Emerald Legacy Life III, are designed to meet modern legacy needs, providing whole life protection for death and terminal illness while preserving and enhancing wealth for future generations.
The plan offers flexibility through single- and limited-pay options of five, 10 and 15 years, enabling affluent individuals to begin their legacy planning early. With annual premiums starting from approximately US$2,750* (S$3,526), policyholders can build lasting wealth for their children over time without compromising on retirement or other financial priorities.
Coverage extends to age 120, providing peace of mind that your legacy is built to last. The option to change the life insured up to twice means the plan can evolve with your family's needs, helping to safeguard not just wealth, but your family's future.
You also have the flexibility to disburse the death benefit in two to 10 annual instalments under the limited-pay option – turning your legacy into a lasting gift that supports your loved ones over time. Each payout is a reminder that you are still by their side, offering encouragement and stability as they navigate life's key milestones, be it graduation, starting a business, pursuing their passion, marriage or buying their first home.
'When planning a legacy, it's about safeguarding what matters most – your values and your children's future,' said Mr Bindra. 'The plan you put in place today can empower them to move forward with purpose, laying the foundation for a lifetime of support.'
*Based on a 17-year-old male, non-smoker, who purchased a 15-year premium term plan, with US$500,000 minimum protection cover, up to age 85.
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