Only 14% of rich people prioritise life insurance despite awareness

41% of SEA saw potential family disputes from lack of a plan as top concern.

Only one (14%) in 10 high-net-worth individuals deem life insurance essential, with many remaining hesitant to act due to product complexity and competing priorities, a survey conducted by Transamerica Life Bermuda and Hubbis revealed.

The “Succession and Estate Planning Survey 2024”, which polled private bankers, family offices, insurance brokers, and wealth advisors across regions including Southeast Asia, North Asia, the Middle East, and Europe, highlighted the role of life insurance as a tool for addressing estate planning challenges. 

Jeremy Young, Chief Commercial Officer of Transamerica Life Bermuda, emphasised that life insurance enables flexible legacy distribution, particularly in complex estate scenarios influenced by global regulatory and tax changes.  

The survey also revealed regional differences in estate planning concerns and approaches. 

In Southeast Asia, 41% of respondents’ clients ranked potential family disputes due to the absence of a plan as their top concern, compared to 25% in other regions. 

Across all regions, ensuring smooth asset transfer (34%) and asset protection (32%) emerged as key objectives for HNW clients.  

Health issues within the family were identified as the primary trigger for action, cited by 32% of respondents, while recommendations from advisors played a significant role in the Middle East and India.  

Despite the growing awareness, traditional tools such as trusts, foundations, and wills remain more popular amongst HNW clients, with Southeast Asia showing a preference for joint accounts. 

Lawyers are the primary source of advice globally, though fiduciary service providers are equally trusted in some regions.