These insights were shared by experts during the Vodcast "Legacy Transfer Plan: From Desire to Action", broadcast on VnExpress on 25/9. The program featured Tran Thi Sen, a financial advisor at Prudential Vietnam, and Tran Hanh Nhung, a senior product manager at Prudential Vietnam.

According to the guests, the desire to leave behind accumulated values for loved ones often stems from years of work, accumulation, and asset building. However, for these values to continue serving the family as intended, simply owning assets is not enough. It is crucial to consider the ability to utilize these resources at specific times.

For instance, a house may hold significant value but requires time to transfer ownership. Similarly, a long-term investment might not be suitable for withdrawal at a particular moment. Meanwhile, essential needs such as children's education, parental care, or maintaining household expenses still require fulfillment if the main income is interrupted.

Therefore, to transform the desire for asset transfer into a concrete plan, families can start by asking three key questions: Who do you want to protect? When do they need resources? And how much needs to be prepared?

Vodcast "Legacy Transfer Plan: From Desire to Action".

The first factor to determine is "the right person", explained Tran Thi Sen. Identifying "the right person" means specifying exactly who the family wishes to protect, as each member may have different needs.

In her consulting experience, Sen encountered a client whose oldest child was attending university, the second child was in primary school, and who also had the responsibility of caring for elderly parents. As the husband was the family's main income earner, he simultaneously had to secure his children's education and future, as well as maintain his responsibility for parental care.

Vodcast "Legacy Transfer Plan: From Desire to Action". *Duc Duy*

In such a case, merely asking "who is the beneficiary" might not fully reflect the family's needs. What needs clearer definition is: if the primary income earner faces an unexpected event, what resources are needed for each relative, for what purpose, and for how long? For a child in university, the need might relate to completing their studies; for a young child, resources might be needed for a longer educational journey; while for elderly parents, it could involve care and support costs.

"A family does not have a single need", said Tran Hanh Nhung. According to her, people might want to ensure their children's education, maintain their spouse's quality of life, or support their parents. By clearly identifying who they want to protect, clients can then proceed to determine what needs to be protected and for how long.

Thus, "the right person" is the step that helps families transition from a general desire to protect loved ones to identifying specific individual needs. From there, clients can calculate the value needed for each person, rather than simply listing beneficiaries in a contract.

If "the right person" answers the question of who needs protection, then "the right time" answers when resources need to be available to meet that person's needs. This could be the moment a child requires education expenses, the family needs to maintain living standards, or financial needs arise due to an interruption in the main income source.

Sen cited an example of a family where the husband was the main income earner, had a good income, and owned many properties. However, when an unexpected incident occurred, most of the family's assets lacked liquidity and could not be quickly transferred to cover the arising expenses.

According to Sen, this case illustrates that owning assets and the ability to meet financial needs at a specific time are two distinct issues. A family may possess many assets but still face resource difficulties if those assets cannot be immediately utilized when needed.

"Preparation must align with current financial resources, while not affecting daily spending and the family's other plans", said Sen.

From a solution design perspective, Nhung noted that a family might own real estate, businesses, or long-term investments, but these assets do not automatically translate into immediate financial resources when an unexpected event occurs.

Tran Hanh Nhung, senior product manager at Prudential Vietnam. *Duc Duy*

When an insured event covered by the contract occurs, benefits are settled according to the agreed terms, thereby supplementing financial resources for the family at the necessary time. Therefore, "the right time" aims to ensure that long-term plans are not disrupted simply because resources are not ready when the family needs them.

According to experts, after determining who to protect and when they need resources, the next step is to determine how much needs to be prepared. "The right value" therefore does not mean preparing the largest possible sum, but calculating a level of resources appropriate for the family's actual needs.

According to Tran Thi Sen, the amount to be prepared should be calculated based on the family's financial capacity and current obligations. Factors to consider include income, loans, children's education expenses, parental care responsibilities, and regular expenditures. From this, the family can determine the remaining resources to allocate for long-term plans without impacting their daily life or ongoing goals.

Sen emphasized that the issue is not about preparing the largest possible sum, but about identifying a suitable amount that can be sustained over a long period. "A financial plan is only meaningful if resources are sufficient for needs and align with the family's capabilities", said Sen.

From a financial perspective, Tran Hanh Nhung noted that there is no universal figure for the amount to be prepared for all families. A family with two young children, long-term loans, and reliance on a single main income source will have different needs compared to a family with adult children and many accumulated assets.

Therefore, calculations should begin with actual needs. The family can ask how much would be required to maintain current obligations and continue important future plans if the main income source were interrupted. Subsequently, existing resources are reviewed to identify what has already been prepared and what shortfall needs to be supplemented.

Beyond the initial resource level, Nhung suggested that the plan also needs a long-term perspective, including the ability to maintain and accumulate value over time. Certain financial solutions with long-term accumulation mechanisms, minimum guaranteed interest rates, and conditional bonuses as per product regulations can be considered to supplement resources for future plans.

The shortfall identified after comparing needs with existing resources serves as the basis for families to consider supplementary solutions. In addition to accumulated assets, insurance can be viewed as one such solution to supplement resources or provide a reserve for long-term plans, depending on needs, financial ability, and the terms of each product.

According to Nhung, the universal life insurance product PRUBao Ve Toi Da 2.0 is designed to support customers in these three aspects. This also forms the basis of the message "Maximize preservation, transfer legacy", aiming not only to create value but also to proactively prepare for its continuation according to each family's wishes.

Thai Anh

Learn more about the PRUBao Ve Toi Da 2.0 solution here.