How Currency and Gold Exposure Work in Legacy Insurance

Key takeaways

• Currency movements can affect legacy planning when assets, investments or future financial commitments are linked to different currencies.
• A Reference Asset is used as a benchmark for calculating the relevant policy value or benefit; the policyholder does not directly own the selected currency or gold.
• PRUPrestige Legacy offers seven Reference Asset options: MYR, SGD, USD, AUD, GBP, CNY and Gold.
• Global Upside, Guaranteed Floor allows the relevant benefit to increase when the selected Reference Asset performs favourably while maintaining a guaranteed MYR floor if the selected Reference Asset performs unfavourably, subject to policy terms and conditions.
• Currency- or gold-referenced legacy insurance may suit business owners earning foreign currency, families with overseas commitments and individuals holding international investments.
• Gold-referenced coverage is not the same as owning physical gold, a gold fund or a gold investment account.

 As families become more globally connected, wealth may be held across different countries, currencies and asset classes. For those with overseas assets, international investments or beneficiaries living abroad, currency movements can affect the value of wealth over time.

Currency- and gold-referenced legacy insurance offers another way to align legacy planning with a more global financial footprint. By linking coverage to selected Reference Assets while maintaining a guaranteed MYR floor, it can help support long-term wealth preservation and transfer objectives.

Why Does Currency Risk Matter in Legacy Planning?

For families with overseas assets, international investments or beneficiaries living abroad, currency movements may affect the value of wealth over time.

For example, future education expenses, overseas property holdings or foreign-currency investments may be exposed to exchange-rate fluctuations. As a result, some families choose to consider currency exposure as part of their broader legacy planning strategy.

For more insights on legacy planning considerations, read Legacy Planning for High-Net-Worth Malaysians: How Families Protect and Pass On Wealth.

What Is a Reference Asset?

 A Reference Asset is used as a benchmark for determining certain policy values or benefits.

Choosing a Reference Asset does not mean the policyholder directly owns that currency or gold. Instead, it serves as the basis for how the relevant policy value or benefit is determined under the policy terms.

Does the policyholder own the currency or gold?

No. Selecting a currency or gold as the Reference Asset does not mean the policyholder is buying or physically holding that asset. It is simply used as a reference for determining the relevant policy value or benefit.

Which Reference Assets are available?

PRUPrestige Legacy offers seven Reference Asset options, customers can choose the Reference Asset that best aligns with their financial goals and legacy planning needs.

• MYR
• SGD
• USD
• AUD
• GBP
• CNY
• Gold

How Does Global Upside, Guaranteed Floor Work?

PRUPrestige Legacy allows the relevant benefit to increase when the selected Reference Asset performs favourably, subject to the policy terms and conditions.

At the same time, a guaranteed MYR floor helps ensure the benefit does not fall below a specified minimum value, even if the selected Reference Asset declines.

In simple terms:

If the selected Reference Asset performs favourably, the relevant benefit may increase according to the policy terms.

If the selected Reference Asset declines, the guaranteed MYR floor continues to apply, subject to the policy conditions.

How Would  Currency-or Gold-Referenced Coverage Work?

The relevant benefit under PRUPrestige Legacy may change based on the performance of the selected Reference Asset, subject to the policy terms and conditions.

For example, if USD is selected as the Reference Asset and it performs favourably, the relevant benefit may increase according to the policy terms. If USD declines, the guaranteed MYR floor continues to apply, subject to the policy conditions.

Similarly, if Gold is selected as the Reference Asset, the relevant benefit may increase when the reference value of gold rises. If it falls, the guaranteed MYR floor continues to apply, subject to the policy conditions.

 It is important to note that selecting Gold as a Reference Asset does not mean the policyholder owns physical gold, a gold fund or a gold investment account. Gold is used as a reference for determining the relevant policy value or benefit under the policy.

Who May Benefit From Currency- or Gold-Referenced Legacy Insurance?

 Currency- or gold-referenced legacy insurance may be relevant for:

• Business Owners Earning Foreign Currency: such as USD, SGD or other foreign currencies.
• Families with overseas commitments including children studying, living or working abroad.
• Individuals with International Investments: such as overseas property, foreign equities or global investment portfolios.

Those seeking exposure to gold as part of their legacy planning: incorporating gold as a Reference Asset for potential upside, with a guaranteed MYR floor when gold performance unfavourably.

Align Your Legacy Planning With a More Global Financial Life

For families with overseas assets, international investments or foreign-currency commitments, currency exposure may be an important consideration when planning for the future.

PRUPrestige Legacy offers a choice of seven Reference Assets, including selected foreign currencies and Gold, together with a guaranteed MYR floor. This provides greater flexibility for customers who wish to align their legacy planning with their broader financial goals, subject to policy terms and conditions.

In addition, features such as Cover Restore Benefit and the Legacy Settlement Option provide flexibility in how coverage is managed and how benefits are distributed as part of a broader legacy planning strategy.