Life Insurance for High-Net-Worth Individuals: Protect Wealth & Reduce Tax
When you’ve worked hard to build wealth, the last thing you want is for your legacy to be diminished by poor planning. Life insurance is not just about protecting your income or settling debts.
For high-net-worth individuals like you, it can be a powerful tool for preserving family wealth, reducing tax liabilities, and ensuring your estate passes smoothly to your chosen beneficiaries.
But with large estates come complex considerations. You may have property portfolios, international assets, trusts, or business interests that make standard life insurance policies unfit for purpose. You may also require a substantial level of cover that many mainstream insurers simply don’t offer.
This is where specialist advice makes all the difference.
At Kerr & Watson, we understand the unique challenges that come with arranging life insurance for high-net-worth individuals. Whether you’re thinking about tax planning, family protection, or business continuity, we’ll guide you through every step of the process with expertise and discretion.
Why Life Insurance Matters for High-Net-Worth Individuals
You may already have significant savings or assets, so life insurance might not seem like a priority. But without the right planning in place, your wealth could be eroded by inheritance tax, debts, or even disputes between beneficiaries.
Life insurance gives you the flexibility to:
- Cover estate tax liabilities so your family doesn’t have to sell assets to settle the bill
- Create liquidity in your estate by providing a tax-free lump sum on death
- Equalise inheritances between children or beneficiaries if your assets are not easily divided
- Fund a trust to provide for vulnerable or younger family members
- Protect business partners or fund a buy-sell agreement
- Secure a legacy for future generations
By arranging the right type of cover, you ensure that your family or trustees can handle your estate in the way you intended, without delays or compromises.
Tailored Cover to Suit Complex Needs
Life insurance for high-net-worth individuals needs to be as unique as your financial situation. Off-the-shelf policies often fall short when large sums or complex circumstances are involved. At Kerr & Watson, we work with a wide range of insurers – including those who specialise in high-value and bespoke policies – to make sure the cover you receive matches your goals.
There are a few key types of life insurance you may want to consider:
Whole of Life Insurance
Provides cover that lasts for your entire lifetime. This is often used to fund inheritance tax liabilities, as the payout is guaranteed as long as the policy is in force.
Level Term Insurance
Offers a fixed lump sum if you pass away within a set term. Ideal for protecting financial dependents, funding school fees, or covering specific debts.
Decreasing Term Insurance
Usually linked to a repayment mortgage or loan, where the level of cover reduces over time in line with the outstanding balance.
Guaranteed Universal Life
A hybrid form of permanent insurance that fixes your premiums for life, without the investment risk. Useful for those looking to lock in cover without market exposure.
When you speak to Kerr & Watson, we’ll help you explore which type, or combination, suits your needs and structure it efficiently alongside your estate and financial planning.
Find out Your Options
Managing Tax with Life Insurance
One of the main reasons high-net-worth individuals take out life insurance is to reduce or eliminate inheritance tax.
In many cases, your estate could face a significant tax bill. Without a strategy in place, your family may need to sell off property, shares, or other investments quickly – often under pressure and at below market value.
Life insurance offers a simple solution. The policy can be held in trust, meaning the payout sits outside your estate for tax purposes. This lump sum can then be used by your trustees or beneficiaries to settle any tax owed, without disturbing your other assets.
At Kerr & Watson, we’ll help you set up your policy correctly, taking care to align it with your estate plan and trust arrangements. If needed, we can work alongside your solicitor or tax adviser to make sure everything is watertight and tax-efficient. We can not give advice om tax ourselves.
Business Protection for Entrepreneurs and Directors
If you own a business, life insurance can also play a key role in protecting it. You may have personal guarantees in place, staff who rely on you, or a business partner who would need to buy out your share if you were no longer around.
Life insurance can provide the capital to:
- Pay off business loans
- Protect staff by covering the cost of recruiting a replacement
- Fund a shareholder buyout agreement
- Maintain cash flow during a period of disruption
We’ll help you assess your risks and choose the most suitable form of business protection, whether that’s key person cover, shareholder protection, or loan repayment insurance.
Underwriting for Large Sums Assured
Securing life insurance with a high level of cover often requires a more detailed underwriting process. Insurers may ask for financial justification, medical records, or lifestyle information. The process can be slow and intrusive if not handled professionally.
We work closely with insurers who are experienced in high-value applications and know how to streamline the process. In many cases, we can negotiate terms in advance, avoid unnecessary medicals, and reduce paperwork by presenting your case in a clear and structured way.
You will only be asked for information that is absolutely necessary. And if time is a factor, for example, if cover needs to be in place before a tax deadline, we’ll make sure everything is handled efficiently and with discretion.
Protecting International Assets and Complex Estates
High-net-worth clients often have assets in multiple jurisdictions, which can complicate inheritance and tax planning. Life insurance can act as a bridge between different countries’ legal systems, helping to ensure continuity and peace of mind for your family.
Whether you hold overseas property, foreign investments, or have tax residency concerns, we’ll take these into account when arranging your life insurance. The right provider will understand these challenges and can offer cover that complements your global financial position.
You might also be using trusts, family offices, or discretionary arrangements as part of your estate planning. We are used to working alongside these structures and can adapt the life insurance advice accordingly, ensuring your wishes are upheld.
Why Choose Kerr & Watson?
Choosing life insurance as a high-net-worth individual is not about finding the cheapest quote. It’s about finding the right cover that fits seamlessly into your broader financial strategy.
At Kerr & Watson, we:
- Take time to understand your full financial and personal circumstances
- Have access to specialist insurers for large sums and complex needs
- Understand the importance of discretion, service, and timely advice
- Work closely with legal and tax professionals if required
- Provide personalised, ongoing support even after your policy is in place
We believe in keeping things simple for you while dealing with the complexities behind the scenes. Our clients trust us to protect what matters most – and we take that responsibility seriously.
Conclusion
Life insurance for high-net-worth individuals is not one-size-fits-all. It is a tailored financial tool that, when used correctly, can help you protect your family, your business, and the wealth you’ve built over a lifetime.
Whether your goal is to reduce inheritance tax, ensure business continuity, or leave a lasting legacy, Kerr & Watson can help you make the right decisions with clarity and confidence.
Contact Kerr & Watson today for expert, discreet advice on life insurance tailored to high-net-worth individuals. We’ll help you put the right protection in place – with no pressure, no jargon, and full transparency from the first conversation.
