High Value Life Insurance
A flexible and bespoke universal life solution designed for high-net-worth clients’ with specific benefits to assist with estate planning, estate preservation and wealth transfer needs.Get A Quote Now
What is High Value Life Insurance
High Value Life Insurance is a policy which can be used to facilitate a plan for wealth and business succession. It can be at the core of a comprehensive strategy to meet the complex multi-generational needs of international, Ultra High-Net-Worth Individuals and High-Net-Worth families.
High Value Life Insurance offers you the flexibility to structure a policy according to your unique requirements including:
• Asset Protection
• Equalising Inheritance
• Paying off debt
• Providing survivor income
• Philanthropic Goals
• Paying Estate, Capital Gains and Inheritance Tax
• Providing cash to transfer a business interest
• Serving as a savings vehicle
A High Value Life Insurance plan provides an efficient and personalised source of liquidity when needed most.
Beyond standard death benefit protection, High Value Life Insurance solutions provide cash accumulation opportunities allowing the accumulation of strong guarantees to help meet global estate and legacy planning needs.
The sum assured can be from $1m to $200m and is available to residents in over 150 countries with flexible premium payments. The policy allows for change of beneficiaries and can even be pledged as collateral.
Sophisticated and bespoke underwriting allows the provider to consider cover for politically exposed individuals who don’t have access to offshore solutions and even to clients who have been denied cover in the past due to pre-existing conditions such as heart attack or cancer.Get A Personalised Quote
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Why High Value Life Insurance
High Value Life Insurance is well-suited to multi-jurisdictional families with complex wealth structures and assets spread across the globe.
Legacy & Succession Planning
Preserve the value of your estate by providing liquid funds for dependents or a spouse to pay for any taxes, fees or debts outstanding upon death. High Value Life Insurance can help create, increase or preserve wealth to ensure fair and equitable distribution of your estate.
Inheritance Tax Planning
A High Value Life Insurance policy can protect your heirs from inheritance tax or property gains tax on assets within your estate. It can provide income tax benefit through tax deduction and tax exemption with the right guidance from a qualified tax professional.
Seen as an alternative asset class that has the ability to generate cash in the future, High Value Life Insurance is one of the few assets with a guaranteed value and predictable cost. It offers both peace-of-mind now and potential death benefit payments later.
In the event of the loss of a key employee, a keyman policy can provide a business the cash flow it needs to keep running. It provides the cash needed to hire a qualified replacement, purchase the additional human capital or assets necessary to keep operations intact.
Without a business survival plan, the consequences for a business owner’s employees, customers, family and estate can be devastating. High Value Life Insurance can help mitigate these risks by serving as a funding tool for your plan.
By either gifting a Life Insurance policy outright or naming a charity as the beneficiary, donors can provide the charity of their choice with a large sum of money and provide a lasting legacy for a cause they truly believe in.
Key Features of High Value Life Insurance
• Potential for cash value growth
• Full flexibility in premium payments and death benefit requirements
• Low cost death benefit protection and strong cash value potential
• Upgraded & bespoke underwriting classifications for the healthiest clients
• Large capacity in key countries allowing for higher death benefits
• Innovative high-net-worth residency code classifications
Success Stories for High Value Life Insurance
Read below great examples of the many success stories of our clients.
Success Story – Family & Business Security
There is perhaps no better financial product for long-term planning than life insurance. Life and business are both full of the unexpected, and wise business owners are well-prepared for any possibility. There are several ways High Value Life Insurance can help with such strategies, including business continuity plans, key person protection, buy/sell funding, debt retirement, and protection against inflation among others.
A 54-year-old client with a wife and 4 children is concerned about protecting his family in the event of his unexpected death.
He owns and is the main driving force behind a growing technology company where most of the profits are re-invested back in to the business to support the optimistic expansion plans.
Most of his $40m wealth is tied up within the business and he decides to purchase a $20m High Value Life Insurance policy to provide the peace of mind he needs to concentrate on expanding the business operations.
The premium is paid on an annual basis over 15 years at $500k p.a.
The client has peace of mind knowing both his family and business’s financial future are safely secure.
Success Story – Key Person Protection
A key person insurance plan provides a business the cash flow it needs to keep running in the event of the loss of a key employee. The life insurance policy provides the cash needed to hire a qualified replacement, purchase the additional human capital or assets necessary to keep operations intact and to help replace lost profit.
A growing start-up business wanted to protect itself financially from a possible untimely death of their 45-year old Managing Director, who was the main driving force behind the business.
They wanted to make sure it had the financial protection that would provide for the loss of income of the key person, as well as the expected cost of recruiting and training his replacement. This was calculated to be a sum of $8m.
The business was able to secure a High Value Life insurance policy with a guaranteed death benefit of $8m. As the business was the owner of the policy, they were comfortable with their cash flows to fund the $100,000 annual premium over 20 years.
The purchase of key person insurance benefits both the business and the executive (key person). The business benefits from having a source of income to offset the loss of revenue and continue to grow by recruiting a skilled replacement and protecting the company’s credit position.
It can also access the potential cash value of the life insurance policy for cash flow, retirement benefits or other unexpected expenses.
Success Story – UK Inheritance Tax Funding
A life insurance policy can serve to protect your heirs from inheritance tax or property gains tax for assets within your estate. It can also provide income tax benefit through tax-deduction, and in some cases, tax exemption with the right guidance from a qualified tax professional.
Shah is a 57-year-old UAE resident who owns a private investment company (PIC) structure with a £9m property portfolio. His PIC owns this portfolio with no outstanding mortgage. He uses one of the properties personally for himself and family members during the summer. The rest are rented and accumulate rental income throughout the year.
The client is aware that his portfolio is now likely to be subject to UK IHT at a rate of 40% on his death, now that the UK IHT changes are implemented. His potential liability is now £3,470,000 (£9m minus £325,000 ((Nil Rate Band)) x 40%) and would grow as the value of the properties increases over time.
Shah’s lawyer, family office, and financial adviser, recommend that he secures a High Value Life Insurance contract with a sum assured of £4m which would cover the potential UK tax liability upon time of death. He was to name his wife and children as the beneficiaries, providing them required liquidity to meet the tax liability and protect the family’s wealth and assets.
The policy was structured as a 10-pay premium payment term, to meet the cash flow requirements. Since the client was in good health, he received a super preferred underwriting offer with an annual premium of £150,000. The 4% rental yield from his property portfolio was more than sufficient to fund the ongoing policy premiums.
Success Story – Equitable Inheritance Distribution
Certain assets, such as property or a business can present administrative and practical challenges for multiple owners. With a family business, for example, multiple-ownership might lead to conflict, especially if some heirs are more active in running the business than others. High Value Life Insurance can help create, increase or preserve wealth to ensure fair and equitable distribution of your estate by providing liquidity at a time it’s needed the most.
Joan, a 58 year old client runs a successful business with one of her sons. Her daughter is not involved in the business and has a career as an artist in New York. The client would like to leave 100% of the business to her son while ensuring that her daughter receives a fair inheritance.
The client estimated the net-worth of the business to be around $30m. She therefore purchased a Universal Life policy with a death benefit of $30m using a single premium of $13m.
As most of Joan’s assets were tied to the business, they decided to pursue a multi-pay strategy instead of funding the entire premium up front. She could use her available cash flow to incept the policy utilising a 15-pay premium strategy allowing her to fund the policy throughout the 15 years using dividends received on assets.
• Ability to self-fund the policy
• Focus on the immediate higher net death benefit and strong cash value accumulation potential
• Flexibility to utilise excess funds during the payment period for other short-term needs
• Eliminates concerns of having an outstanding loan
• On her death both children receive an equal amount
Why Choose IAE Insure
Reasons why customers choose IAE Insure
IAE Insure has over 25 years of Life Insurance experience with a global client base. We work with internationally renowned and highly respected underwriters and insurance providers.
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Simple, straightforward advice with no obligation to buy. Once we have the relevant information, we can provide you with a free quote from our internationally renowned Life Insurance providers.
Tailor Made Service
No two individuals ever have the same requirements. IAE Insure works to understand your financial requirements, ensuring we provide the best options for your unique and specific needs.