*Official* BBCWatcher club

[highsulphur]

https://www.manulife.com.sg/en/abou...-single-300million-life-insurance-policy.html

What are possibilities for such a policy to be bought? I can think of tax/estate planning. But in the context of Singapore where there is no estate duty or capital gain tax, would such a premium /policy make any sense?

 

[BBCWatcher]

https://www.manulife.com.sg/en/abou...-single-300million-life-insurance-policy.html
What are possibilities for such a policy to be bought? I can think of tax/estate planning. But in the context of Singapore where there is no estate duty or capital gain tax, would such a premium /policy make any sense?

Overseas investments are sometimes subject to estate tax. Even for residents of Singapore.

 

[highsulphur]

Overseas investments are sometimes subject to estate tax. Even for residents of Singapore.

For a Singapore tax resident that does not have any investment that attract estate duties or capital gain tax, is there any reason for such a policy?

 

[BBCWatcher]

CNA and other media outlets are reporting on SingStat's release of household wealth data.

To editorialize a bit, SingStat evidently only reports wealth statistics for "resident households," defined as including at least one Singaporean citizen or Singapore Permanent Resident. (Technically it's possible to miss a very small number of these households.) I don't think any other national statistical bureau filters its "top line" aggregate data based on household members' immigration status(es), so if you're making cross-country comparisons it's...weird, let's just say that. Applying an immigration status filter likely affects the reported statistics. I think it's fine to report "resident household" statistics, but "all household" statistics should also be reported (and with per capita breakdowns). As of June, 2025, the Ministry of Manpower reported about 1.36 million workers in Singapore on S Passes and work permits. Roughly 1 million of them likely live outside resident households. That's a lot! They obviously exist; they should be represented in official national statistics, too.

 

[BBCWatcher]

For a Singapore tax resident that does not have any investment that attract estate duties or capital gain tax, is there any reason for such a policy?

Maybe, but obviously it's an edge case — as Manulife itself points out. For example, a corporation might buy a high dollar life insurance policy against a senior executive or other valuable employee to help mitigate the corporation's untimely loss of that individual's talents. As another example, an unusual divorce settlement or prenuptial agreement might include a high dollar life insurance policy.

....Or it makes little sense, and somebody just wanted to buy a strange policy.

 

[cassowary18]

https://www.manulife.com.sg/en/abou...-single-300million-life-insurance-policy.html

What are possibilities for such a policy to be bought? I can think of tax/estate planning. But in the context of Singapore where there is no estate duty or capital gain tax, would such a premium /policy make any sense?

Professional athletes often take out multi-million-dollar insurance policies to guard against future earnings, especially in sports where the risk of serious disability or even death is possible (think American football, ice hockey, etc.)

Do we have such a professional athlete in Singapore? Maybe...

 

[BBCWatcher]

Professional athletes often take out multi-million-dollar insurance policies to guard against future earnings, especially in sports where the risk of serious disability or even death is possible (think American football, ice hockey, etc.)

Of course the underwriters are supposed to understand the risks and take them into account in setting premiums.

I wonder what "free" gift you get at the roadshow when you buy a US$300 million life insurance policy....