For many people, life insurance is designed to provide a financial safety net for their family. But what happens when the amount of financial protection required is significantly higher than a standard policy?
High Net Worth Life Insurance, sometimes referred to as Jumbo Life Insurance, is designed for individuals who require substantial levels of life cover. This can include people looking for £1 million or more in life insurance, as well as high-net-worth individuals whose financial circumstances require significantly larger sums.
For wealthy individuals, business owners, entrepreneurs and internationally mobile families, life insurance can form an important part of wider financial planning.
What is Jumbo Life Insurance?
There is no single universal figure that automatically defines a ‘Jumbo’ life insurance policy. The term is generally used to describe policies involving particularly high sums assured. Someone searching for £1 million life insurance, for example, may have very different requirements from someone looking for £5 million, £10 million or more.
Large life insurance policies can be used to provide financial security for dependants, protect business interests, provide liquidity for estate planning or preserve wealth for future generations. The amount of cover available and the underwriting process will depend on the insurer, the applicant and the circumstances surrounding the application.
Who Might Need £1 Million or More in Life Insurance?
High levels of life cover are not exclusively relevant to people with significant personal wealth. The amount of cover required generally needs to reflect an individual’s financial responsibilities and objectives. For example, a high-net-worth individual may have substantial property holdings, investments, business interests or other assets. Their family may also depend on their income or involvement in a business.
A business owner may want life insurance to help protect the value of a company or provide funds to deal with the financial consequences of their death. In other circumstances, a policy could form part of a broader strategy for passing wealth to beneficiaries.
For expatriates living in the UAE, international financial arrangements can add another layer of complexity. An individual may have assets, family members or financial commitments in multiple countries, making it important to consider the wider picture when determining the appropriate level and structure of cover.
How is High Net Worth Life Insurance Assessed?
Applying for a substantial amount of life insurance can involve more detailed underwriting than a relatively small policy. Insurers may consider factors such as age, occupation, lifestyle, medical history, income, assets, existing insurance and the reason for requesting the level of cover.
The insurer may also want to understand why a particular sum assured is required. For example, an application for £2 million of cover may be assessed differently depending on whether the purpose is family protection, business planning, wealth preservation or another financial objective.
For particularly large policies, an insurer may request additional financial or medical information before making a decision. This does not necessarily mean that high-value life insurance is difficult to obtain. However, it does mean that applications can benefit from careful preparation and specialist guidance.
Can Expats in the UAE Get £1 Million+ Life Insurance?
UAE residents and expatriates may be able to arrange substantial levels of life insurance, depending on their circumstances and the criteria of the insurer. However, international applicants can have additional factors to consider. Residency, nationality, where income is generated, where assets are held and where beneficiaries live may all be relevant when arranging international life cover.
Currency can also be an important consideration. Someone earning in US dollars or UAE dirhams but with UK-based assets may need to think carefully about the currency in which their life insurance is arranged and the financial obligations the policy is intended to protect.
This is where working with an experienced insurance broker can be particularly useful. A broker can help establish the level of protection required and explore suitable options from insurers that can accommodate more complex circumstances.
Finding the Right High Net Worth Life Insurance.
If you are searching for £1 million+ life insurance, it is worth looking beyond the headline amount of cover. The structure of the policy, insurer, exclusions, underwriting requirements and intended purpose of the protection all need to be considered. For high-net-worth individuals and expatriates in the UAE, life insurance may form part of a wider financial protection strategy involving family wealth, business interests, property and international assets.
IAE Insure can help you explore high-value Life Insurance options and discuss the level of protection that may be appropriate for your circumstances. If you are looking for £1 million, £2 million or more in Life Insurance, speak to IAE Insure to discuss your requirements and explore your options.
