A recent report by life insurer HSBC Life has revealed a striking shift in how high-net-worth individuals (HNWI) think about, use, and value life insurance. Titled “HNW Legacy Planning: Bridging the Intentions–Action Gap”, the report found that such individuals view life insurance not as a fallback, but as a foundational tool around which their legacy strategies are built. To understand why, the report suggested looking closely at what the wealthiest individuals want their legacy to achieve.
Priorities that shape legacy planning for HNWIs
The study revealed that Singapore’s HNWIs take a structured approach to legacy planning, with clear priorities for their legacy plans: 41% cite minimising the impact of taxation as their top financial goal, 39% seek stable and predictable growth, while 38% prioritise preserving capital value, even at the cost of lower returns.
These are not the goals of individuals still building wealth. Rather, they reflect the priorities of those who have already built significant wealth and are now focused on protecting it and passing it on in a structured and controlled manner. What this group wants is certainty over speculation, and structure over exposure. Increasingly, they are finding that life insurance serves precisely this purpose.
Beyond its traditional wealth protection features, life insurance offers the potential for capital growth within a structured framework – one that provides liquidity and control, so families can navigate cross-border complexities and facilitate the transfer of wealth across generations.
Life insurance has become as mainstream as wills in legacy planning
The adoption numbers reflect this preference clearly. The survey found that 49% of Singapore’s richest are already using life insurance as part of their legacy strategy, while a further 37% are actively considering it. It is one of the top legacy planning tool alongside a will, with 25% saying that life insurance is their primary or most important legacy planning tool. Additionally, among those who have not yet begun formal planning, 88% identify life insurance as their preferred instrument when they do — a striking signal of its growing popularity.
Two practical considerations drive that preference: privacy and speed. Some 71% of Singapore’s HNWIs believed life insurance offers superior privacy compared with other legacy planning tools, while 66% said it provides greater certainty and speed of payout to beneficiaries. These are considerations that carry real weight for individuals managing multi-jurisdictional wealth and complex family structures.
The emergence of sophisticated life insurance solutions such as indexed universal life (IUL) insurance also speak directly to HNWI priorities. Nearly all (98%) Singaporean HNWIs incorporate international financial hubs into their wealth and legacy strategies, and IUL plans support this preference by enabling diversification beyond Singapore. These solutions link returns to market index performance and offer the potential for stable, meaningful growth, with built-in downside protection mechanisms that help preserve capital when markets fall.
IUL plans’ death benefits also provide a streamlined, jurisdictionally neutral vehicle for intergenerational wealth transfer. In addition, modern IUL structures allow flexibility as family circumstances change.
HSBC Life Singapore CEO Harpreet Bindra notes that “life insurance has matured significantly as a planning tool for complex wealth needs that evolve over life stages and generations. Products such as indexed universal life solutions exist precisely to meet the goals that matter most to HNWIs and offer potential for certainty, liquidity and flexibility across jurisdictions that can help reduce the risk of disputes and ensure continuity across generations.”
For HNWIs focused on preserving what they have built and transferring it with minimal erosion, IUL is not a compromise between protection and growth. Instead, it is seen as a purpose-built solution tailored to their articulated goals.
The advisers’ role as legacy architects
The insurance solution is only part of the story. As the wealth needs of HNWIs become more complex and interconnected, professional advice remains a defining factor in the adoption of life insurance solutions.
In the report, professional advice emerged as the leading trigger for legacy planning among Singapore’s HNWIs (42%). Financial advisers were the most influential source of information for legacy decisions, as cited by 47% of respondents — ahead of lawyers, family members, and personal research. Clients who are prompted to act by an adviser were also found to pursue more holistic strategies that go beyond tax efficiency and capital security to focus on non-financial aspects, such as carrying forward family values and principles.
The research also highlighted that there is an appetite for active partnership between clients and advisers. Half (50%) of HNWIs wanted proactive updates and ongoing engagement from their advisers, rather than just contact at policy renewal. Meanwhile, 46% believed advisers focus too much on products rather than on conversations centred on family values. The message is clear: clients are ready for deeper conversations and place high value on trusted advisor relationships for this.
Trust as the cornerstone of legacy planning
Trust is also a critical factor when selecting an insurance partner. Financial strength (40%), and brand reputation and a long history (36%) are among the most important characteristics they look for.
As Singapore’s wealthiest individuals navigate the complexities of legacy planning, they increasingly turn to partners like HSBC Life to provide the stability, privacy, and expertise they value most. Named the World’s Best Insurance Provider for Wealth Management at the Euromoney Private Banking Awards 2026, HSBC Life pairs decades of financial expertise with a deep understanding of the needs of HNWI clients.
Legacy planning for a new era
Legacy planning in Singapore is entering a new era, driven by the proactive and strategic mindset of Singapore’s wealthiest individuals. Unlike their global peers, Singapore’s affluent take a deliberate, calculated approach to legacy planning.
However, while there is growth, there is also a gap. With 86% of respondents using or actively considering life insurance, awareness of life insurance’s deeper capabilities, particularly its role in streamlining wealth transfer for the next generations, still has room to grow.
As this understanding deepens across Singapore’s HNWI segment, the case for life insurance as the cornerstone of legacy planning is likely to strengthen further. The shift is already underway.
Explore more legacy planning trends in HSBC Life’s report: grp.hsbc/legacy