Among them, 30% allocate at least 11% of their total assets to insurance products, highlighting the role of insurance in wealth management and succession planning.
The study surveyed individuals with net assets of at least HK$7.8 million, focusing on their financial planning preferences. It examined how this group uses insurance as a tool for preserving, growing, and distributing wealth, as well as the specific challenges they encounter in estate planning.
The report found that life insurance is the most commonly held policy type, with 78% of respondents owning a policy. Medical insurance (76%) and savings insurance (60%) were also widely adopted. Additionally, 57% of surveyed HNWIs said they use insurance to facilitate a smoother transfer of wealth to the next generation.
When asked about their primary concerns regarding inheritance, 64% of respondents prioritised structured asset distribution to minimize disputes. Another 67% acknowledged that beneficiary designations in insurance policies could help prevent conflicts during wealth transfer.
Albert Mak (pictured left), chief agency officer of Manulife Hong Kong and Macau, said that insurance is increasingly viewed as a key component of financial planning for HNWIs.
“In today’s evolving financial environment, HNWIs are turning to insurance as a key strategic means of achieving financial stability, effectively managing risks, and preserving their legacies. It’s important to note that legacy planning isn’t exclusive to those with significant assets; in fact, effective legacy planning can benefit anyone who wishes to pass on their wealth to future generations,” he said.
Anthony Lau (pictured right), Deloitte Private Hong Kong leader, added that insurance products now serve functions similar to wills, family trusts, and power of attorney arrangements.
“Insurance has evolved from a risk management product to a legacy planning tool highly preferred by our HNWI clients,” he said.
He also noted that in certain jurisdictions, tax authorities offer benefits such as exemptions, deferrals, and deductions on insurance products – making them an attractive option for estate planning.
To meet the needs of high-net-worth clients, Manulife has introduced a dedicated Private Client Wealth Planning team. This initiative aims to help clients manage financial risks, ensure smooth wealth transitions, and provide access to external professional services for additional estate planning support.
Manulife’s product offerings, such as Genesis, Whole-In-One-Prime 3, and Future Assure 2, are designed to cater to various financial planning needs. The company also introduced Legacy Choice, a feature within designated insurance products that allows for policy transfers under pre-specified conditions.
“The combination of legacy planning expertise, leading specialist advice and innovative features is essential to delivering bespoke and holistic solutions that effectively address the individual needs of HNWIs, empowering them to navigate complex planning challenges with confidence,” Mak said.
The study identified several key concerns among high-net-worth individuals regarding wealth succession:
The report also examined retirement priorities among respondents:
The insights align with a separate study by Sun Life Asia, which examined financial concerns among retirees in the Asia-Pacific region. Among surveyed retirees, 25% regretted not saving enough, while 66% cited insufficient savings as a major challenge. The study also revealed that a significant portion of individuals delay retirement planning until they are within five years of retiring.
