HSBC Life Singapore has launched an indexed universal life plan that offers both life insurance protection and investment.

The HSBC Life Diamond Prestige IUL is designed for affluent clients looking to balance continued growth potential with security in the legacy gift they are preparing for loved ones, the company says.

The affluent segment has been growing rapidly with the number of high-net-worth and ultra-high-net-worth individuals expected to triple between 2016 and 2026, Knight Frank forecasts. In Singapore, the HNWI/UHNWI population is expected to more than double to about 600,000 during the same period.

In addition, more than US$18.3 trillion in wealth is forecast to be transferred by 2030, including US$2.5 trillion in Asia, according to a Wealth-X report.

Meanwhile, preparing for unexpected events such as incapacity or death, and transferring wealth to the next generation or beneficiaries are key objectives of the HNWI segment, the HSBC Quality of Life Report finds.

“In Singapore, we see sustained demand for wealth, health and insurance solutions from affluent individuals and their families. HSBC Life Diamond Prestige IUL has been designed to be an efficient instrument for wealth transfer, while giving clients added peace of mind that their wealth is protected regardless of market conditions,” says HSBC Life Singapore chief executive officer Harpreet Bindra.

HSBC Life Diamond Prestige IUL offers the flexibility to allocate funds between a general account and an index account, depending on the client’s risk appetite.

The index account allows clients to grow their wealth with potentially higher returns from the international equity market, with a crediting rate pegged to the performance of the S&P 500 Index, currently capped at 10%. It is protected from market downside with a floor rate of 0%.

Alongside that, the general account offers secure stable returns with a minimum guaranteed crediting rate, so clients can enjoy the best of both market opportunities and stable returns, the company says.