High net worth life insurance

Level term life insurance

Level term life insurance provides cover for a specified period of time (often this can be up to 40 years) and can provide a fixed pay out of up to £1,000,000.

A pay out will only be issued to your loved ones if you pass away during the term of the policy.

Due to the large pay out potential, level term life insurance is well suited to those wanting to protect large debts, such as an interest only mortgage, as well as protecting future family living costs.

Decreasing term life insurance

With a decreasing term life insurance policy, you’ll be covered for a specified period of time (up to 40 years) and your sum assured will reduce over the lifetime of your policy.

While you can choose a sum assured of up to £1,000,000 this will decrease over time.

If you have any loans in place that are likely to reduce over time, such as a repayment mortgage, securing a decreasing term policy can be ideal for helping protect these.

As with a level term life insurance policy, your loved ones will only receive a pay out if you pass away during the policy term.

Whole of life insurance

Whole of life insurance provides lifelong cover and guarantees your loved ones a pay out when you pass away.

With a whole of life policy it’s possible to secure a pay out amount of up to £1,000,000.

Whole of life insurance can be an ideal option for high net worth individuals to guarantee their loved ones an inheritance after their passing and ensure that essential costs are taken care of.

Critical illness cover

Critical illness cover can be added to a life insurance policy for an additional fee.

It will allow you to make an early claim on your life insurance policy if you’re diagnosed with a life changing (but not life threatening) illness that’s listed within your policy.

The pay out can then help you to pay for medical bills, make necessary adaptions to your home or pay for carers.

Terminal illness cover

Terminal illness cover comes at no extra cost with all term policies taken out through Reassured.

It provides the opportunity for an early pay out if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.

The funds can then be used to help cover any private medical fees, help you get your financial affairs in order, or you could spend the funds enjoying time with your loved ones.

Income protection

Income protection will pay out a percentage of your usual income, in monthly (tax-free) instalments, in the event you become too ill or injured to work.

Income protection for high-net-worth clients can have some complications.

Firstly, those with a high net worth often have multiple sources of income and may be required to pay various taxes, which make it hard for income protection to be calculated accordingly.

Secondly, most standard income protection policies often have a maximum monthly benefit amount which may not come close to the amount needed for a high net worth individual.

However, some providers, such as Zurich, offer to pay out up to 80% of your annual net earnings up to a maximum of £20,000 per month. (This information has been taken from Zurich’s website and is correct as of 09/06/23).

This makes comparing income protection quotes essential to find the right level of cover to meet your needs.

Reassured can secure income protection quotes from Zurich, as well as all of the UK’s other leading providers, to help you find the best policy.

• Avoid/minimise 40% inheritance tax for your loved ones
  As someone with a high net worth, it’s likely you have a large sum of property and possessions that make up your estate. When you pass away, 40% inheritance tax will be charged on anything over the £325,000 threshold. By writing your life insurance policy in trust, the pay out can become detached from your estate, ensuring that your loved ones receive a full pay out. The funds can then be used to help pay off any inheritance tax fees on your estate so your loved ones don’t have to use their own money or claim money back from the estate.
• Pay for life insurance through your business
  If you’re a high net worth individual who owns a business, it can be possible to claim your life insurance as a business expense allowing you to benefit from tax relief. This will only be possible through a relevant life insurance policy, rather than an individual policy. Unfortunately, we can’t currently secure relevant life insurance policies at Reassured.