Lombard International Assurance has added a “Wealth Preservation Life Cover” option to its range of unit-linked life insurance solutions offered to Latin American clients and their families.
The Wealth Preservation Life Cover solution enables Latin American clients and their financial advisers to protect a family’s wealth against sudden unfavourable market conditions.
According to the firm, it combines the advantages of a Lombard International Assurance unit-linked life insurance solution with a variable additional death cover, to be automatically implemented, when the net value of a client’s wealth embedded in a unit-linked solution is affected by negative capital market performance. The Wealth Preservation Life Cover option does not bear any permanent or upfront charges.
Andreas Meier, head of Latin America, commented: “The Wealth Preservation Life Cover is a great solution for clients who want to avoid their financial assets being exposed to typical investment risks like uncontrollable downturns of global capital markets. It is an ex-post hedge of the policy surrender value at a fraction of the typical costs for financial hedging strategies, e.g. when using options and other financial derivatives.”
Pablo Peciña, senior wealth planner, added: “The Wealth Preservation Life Cover is a feature that upholds succession planning by ensuring that, at least, the premium paid into the policy is passed on to the beneficiaries in the event of death. Should the policy value fall below the paid premium, the life policy will automatically include an extra mortality cover to compensate the shortfall. Latin American clients who upgrade our recognised unit-linked life insurance solutions with a Wealth Preservation Life Cover will enjoy a greater degree of protection.”
Lombard International Assurance has already introduced its Wealth Preservation Life Cover solution in markets like Italy and Spain.
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