Hong Kong’s regulatory bodies have amended their guidelines to allow high-net-worth individuals to access indexed universal life policies. This move aligns with the increasing popularity of these policies in markets like Singapore and the United States.
These policies, often called indexed universal life (IUL) policies, offer a compelling value proposition. They permit premium holders to use assets such as stocks and bonds as collateral, effectively serving as a custodian. This approach provides wealthy clients with greater flexibility and improves their cash flow management.
The change in regulations reflects a growing demand from affluent individuals seeking to optimize their financial strategies and achieve greater efficiency in their cash holdings.
