Life Insurance for High-Net-Worth Individuals (Discounts & Rates)

Life insurance for high-net-worth individuals can cost as little as $9/mo. Life insurance rates for high-net-worth individuals depend on age, health, and lifestyle choices, and high death benefit amounts are more costly. Wealthy policyholders usually choose permanent life insurance policies because they're better for long-term coverage.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Written by D. Gilson, PhD
Professor & Published Author D. Gilson, PhD

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 1, 2022

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The Highlights

  • The average cost of life insurance is $9 per month for younger policyholders
  • High-net-worth individuals can use life insurance to protect their assets
  • Life insurance offers a tax-protected method of wealth transfer and doesn’t go through probate

Life insurance for high-net-worth individuals is recommended to ensure wealth and debts are taken care of after someone passes away. But why do wealthy people need life insurance?

Read through this short guide to learn how much life insurance rates for high-net-worth individuals cost and how life insurance can be an asset.

Why wait to find life insurance quotes for high-net-worth individuals? Enter your ZIP code in the free comparison tool above to compare multiple life companies and insurance products near you.

How much is life insurance for high-net-worth individuals?

Life insurance for the wealthy is no different than life insurance for anyone else. People with a high amount of income are able to make the same coverage choice for insurance as someone who earns less. However, as wealthy individuals usually have bigger budgets, they tend to have have more options as customers. And since they need larger policies, the higher death benefit can impact rates.

If you’re looking for a standard term life insurance policy, start with the best life insurance companies, and not just the largest insurers. Check out their monthly rates below.

Average Monthly Life Insurance Rates and A.M. Best Rating by Company
CompanyAverage Monthly Life Insurance RatesA.M. Best Rating
Banner Life$9A+
Guardian Life$10A++
Haven Life$11A++
John Hancock$11A+
Mutual of Omaha$12A+
New York Life$11A++
Northwestern MutualN/AA++
Pacific LifeN/AA+
State Farm$15A++
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These rates reflect the cost of term life insurance for policyholders under 40 with $100,000 death benefits for a ten-year term.

Any permanent life insurance will cost five to ten times more than term life insurance. Ultimately, your life insurance rates are determined by everyday life factors like age, health, and lifestyle choice.

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Recommended Life Insurance Policies for High-Net-Worth Individuals

Permanent life insurance is more efficient as a long-term solution. Whole life insurance and universal life insurance carry cash value benefits.

There are different types of universal life insurance – each type has a unique coverage method, cash value, and even investment opportunities.

Annuities, disability insurance, and long-term care insurance are also products wealthy people should consider to cover all their bases and protect their wealth from unexpected out-of-pocket costs.

Most life insurance companies have several products to choose from, so shop around until you find a life insurance company with a high-net-worth insurance option.

How does life insurance protect high-net-worth individuals?

Tax laws favor life insurance. Business owners, generational wealth, and other assets can be protected if it’s tied to life insurance.

For example, you can borrow money against your death benefits, but only through permanent life insurance.

Borrowing and paying back money against your life insurance is known as infinite banking or cash flow banking – a life insurance strategy that must be handled carefully.

If you pay the money back before you pass away, it won’t affect your death benefits. However, money that you don’t pay back is deducted from your coverage limit. Debts that you owe are also taken out of your death benefits.

Because life insurance doesn’t go through probate and is tax-free, it can provide a method of wealth transfer that avoids estate taxes.

Why is life insurance for high-net-worth individuals important?

Life insurance is one of many ways to protect family, business partners, and other beneficiaries after you’ve passed away. It’s even more important for wealthy people because the asset and debt costs are generally higher.

Reassure yourself and get life insurance to avoid any unexpected costs your loved ones or business partners may face.

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Life Insurance for High-Net-Worth Individuals: What’s the bottom line?

A cost-efficient term life insurance policy is always an option, but wealthy people may want permanent life insurance to provide long-term tax protection for wealth transfer.

Always start with the best insurance companies to find the best rates and reputation. Your income level will not affect your rates, but selecting a high death benefit does make insurance more expensive.

Now that you have more knowledge about life insurance for high-net-worth individuals, use our free online quote tool below to compare the best companies in your local area.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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