High Net Worth Life Insurance Cover: Letting you save incredibly on estate taxes

High Net Worth individuals tend to face unique challenges when it comes to insurance of their assets. They are likely to develop a preference for different types of insurance products. The fact is that affluent families require complicated risk management service but may have comparatively lesser obvious needs for an insurance coverage.The actual risk lies in over-insuring for minor threats while underinsuring for major threats. The high net worth insurance policy focuses on smoothing the relationship between the balancing the threat due to major and minor risks and the coverage.

How can they be underinsured? 

High net worth individuals(HNWI) tend to be underinsured and some of their valuable possessions may be at a risk. Often affluent individuals have expensive hobbies and habits like art, racehorses, wine collections, and yachts. These may be easy to gather but equally prone for not being insured. Even if these possessions are insured, the owner may not have enough time to do the groundwork for determining the actual market value of a possession. In other words, the insurance may not fit the possession.A knowledgeable high-net-worth insurance agent would work diligently and note all the hard-to replace possessions, and find a way of their accurate appraisal for providing insurance solutions covering the risk. An appropriate high-net-worth insurance policy would safeguard against cleaning accidents or theft by cleaning staff. In fact, a wiser thing to do is getting coverage of the assets against a suit from an employee or a service providing agency. This aspect is related to what is known commonly referred as nanny coverage.

Estate taxes 

Most of the carriers do not offer life insurance for high-net worth individuals. Moreover, the HNWI do not consider getting a life insurance as their estate is enough for offering financial security to the children and other surviving family members. The obvious benefits of life insurance are easily overlooked.However, there are some not-so-obvious benefits of a life insurance. For HNWI, life insurance helps in making savings on estate taxes. In fact, HNWI can save thousands to millions of dollars with a high net worth life insurance cover. Estate taxes for the affluent are very high, with standard rates being 50 percent of the net worth and even higher.You can know more about the various cost savings that HNWI can get with a High-Net-Worth life insurance cover from a reputed life settlement consulting at Colva Services.