In This Article
What are high net worth insurance brokers?
High net worth insurance brokers arrange insurance policies for high net worth people. The range of policies that offered by high net worth insurance brokers will depend upon the broker themselves.
Different brokers have their own specialism so high net worth insurance brokers that arrange a lot of buildings policies may not have experience in dealing with insurance for yachts or aeroplanes.
High net worth insurance brokers usually stick to arranging policies that are of larger value with higher premiums as this is the niche that they are in with the contacts to assist them. Again, the business taken would vary amongst the different brokers and they may have a different idea of what is acceptable for them arrange.
The majority of high net worth insurance brokers will be members of the Association of British Insurers.
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Who would be classed as a high net worth person that may need the services of high net worth insurance brokers?
The exact definition of high net worth seems to change from source to source but a common definition is a person with a net worth of £10M or an income of above £500,000.
It may be that this persons need for insurance is different than that of somebody that is not considered high net worth due to the assets that they own. For instance, if their property is very expensive (e.g. £5M +) they may not have the same insurers available so would like bespoke advice about which companies would be willing to consider this property.
That same property may have a substantial amount of valuables which could include rare art or fine jewellery. Again, not every insurance company would be willing to take this on so speaking with high net worth insurance brokers that work with the insurers that specialise in this area on a daily basis, would be beneficial.
In addition to property, the item that you wish to ensure could be something even more specialist such as a yacht or a helicopter. It’s unlikely that your average insurance broker arranges many policies like this whereas the right high net worth mortgage brokers are probably going to be more familiar with them.
What is the benefit of using high net worth insurance brokers?
It’s impossible to be a specialist in every subject so expecting all insurance brokers to know the fine details of insurance against any asset may be a way to approach the wrong insurance broker.
If you are high net worth and have a need to insure something valuable (for instance, a house over £1M, a rare classic car, a life insurance policy with a large sum assured that is to be written into trust etc) you should look to talk with a company that have experience in the type of policy that you need.
Taking individual advice from this company is important. They can work with you to work out your goals, agree your insurance needs and then arrange a policy that gives you the peace of mind to know that the valuable item in your life is now protected.
I NEED ADVICE work with high net worth insurance brokers that can give you a free consultation to offer you the advice that you need.
High net worth insurance brokers for life insurance
If you are high net worth, you likely have a large estate that could include property.
If there is a residential mortgage on this property and you would like this paid off on your death without needing to sell other assets in your estate, life insurance is a common solution.
There are many different types of life insurance, but they all have one common goal: to provide financial security for your loved ones in the event of your death. Life insurance can be used to help cover expenses like funeral costs, outstanding debts, or everyday living expenses.
Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person.
Many insurance brokers and financial advisers arrange life insurance but if you have the need for a large policy, e.g. over £1M, high net worth insurance brokers may have more options. They will also look to arrange trusts for the proceeds of the insurance money to be paid into. Trusts are a complex subject so speak to the broker about them to see if they would be suitable for you.
High net worth insurance brokers for relevant life cover paid for by your business
If you have a successful business and were wanting life cover to pay out to your loved ones in the event that you were to pass away, relevant life cover may be the answer. High net worth insurance brokers with the correct experience should be able to give you the guidance that you need in this area.
A relevant life policy is a tax-efficient life assurance policy set up to provide death-in-service benefits to a particular employee or group of employees, usually with a lump sum payable on death.
The benefit is paid as a lump sum, tax-free, to the named beneficiaries. The policy is normally set up by the employer, with the employer paying the premiums and being the owner of the policy. If the employee dies while the policy is in force, the death benefit is paid to the named beneficiaries.
The benefit is paid tax-free, which means that the beneficiaries do not pay any income tax or capital gains tax on the benefit. Relevant life policies are often used to provide death-in-service benefits to key employees, such as directors or senior managers.
The policies can be used to provide death-in-service benefits to employees who are not members of a company pension scheme, or to supplement the death-in-service benefits provided by a company pension scheme. Relevant life policies can be set up on a whole-of-life basis or for a fixed term.
Whole-of-life policies provide death-in-service benefits from the date the policy is taken out until the date of death. Fixed-term policies provide death-in-service benefits for a fixed term, such as 10 years or 20 years.
The premiums for relevant life policies are generally paid by the employer, and are often paid from the company’s profits. The premiums paid by the employer are not subject to income tax or national insurance contributions. The death benefit is not subject to income tax or capital gains tax.
Rules change over time so to find out up to date information about relevant life insurance, speak with your insurance broker and your accountant who can explain more about the tax treatment.
If you would like I NEED ADVICE to find you a high net worth insurance broker to explain more and provides bespoke quotes for relevant life cover, please complete the contact form.
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High net worth insurance brokers for key person cover paid for by your business
If you have a successful business and certain individuals play a key part in the day to day success (where the sudden loss of them could put the business at huge risk), you may wish to insure them with key person cover.
The correct high net worth insurance brokers will have experience in large key person policies to give successful business owners more peace of mind.
Key person cover is a type of insurance that provides protection for a business in the event that a key employee dies or is incapacitated. The key person may be the owner of the business, a partner, or a key employee whose death or incapacity would have a significant impact on the business.
The death or inability to work of a key employee can have a significant impact on a business, as they may be responsible for vital tasks or hold important knowledge. Key person cover can provide a financial safety net to help a business survive the loss of a key employee.
The cover can be used to help cover the cost of recruiting and training a replacement employee, as well as any lost revenue that may be incurred as a result of the death or illness.
It may be that losing a key employee would mean wanting to reduce your outgoings and a way of doing this could be using the funds to pay off a commercial mortgage.
To find out more about how these policies would work for your business, the costs and tax treatment applicable to them, speak with your insurance broker who can explain more (they may not be able to cover the tax side due to the qualification needed but high net worth insurance brokers should have the correct contacts to introduce you too if needed).
I NEED ADVICE can introduce you to a high net worth insurance brokers that can assist you with your goals.
High net worth insurance brokers for development insurance
If you have a building project taking place, you should consider speaking to high net worth insurance brokers that are familiar with policies related to instruction. The types of policies that these could relate to are insurance policies for the site and buildings themselves, legal indemnity policies, legal expenses insurance, public liability insurances, latent defects insurance, collateral warranties and more.
It may be that an insurance broker specialising in car insurance does not have lots of experience in insuring large developments so best to find a high net worth insurance broker with the relevant experience.
I NEED ADVICE can find you an experienced broker to guide you if you complete the contact form.
What is Lloyds of London and why is this relevant to high net worth insurance brokers?
Lloyd’s of London, generally known simply as Lloyd’s, is a British insurance and reinsurance market located in the City of London.
Unlike most of its competitors in the industry, it is not an insurance company; rather, Lloyd’s is a corporate body governed by the Lloyd’s Act of 1871 and subsequent Acts of Parliament.
It operates as a partially mutualised marketplace within which multiple financial backers, grouped in syndicates, come together to pool and spread risk.
The market began in the late 17th century, and grew to become the world’s leading specialist insurance market in the late 20th century. It now has over 80 syndicates that underwrite a total of approximately £34 billion of premiums per year.
Lloyd’s name is often used as a metonym for the insurance industry as a whole.
Some high net worth insurance brokers will have experience of dealing with Lloyd’s of London when looking to insurance somewhat rare and unusual things that would not be offered cover by your average insurance company.
High net worth insurance brokers over the years have contacted Lloyd’s of London about insuring the likes of luxury yachts, financial institutions, aviation and even against terrorism. Find out more about Lloyd’s of London.
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What are some things that high net worth insurance brokers can arrange cover for?
High net worth insurance brokers will have different experience and there are lots of luxury and expensive assets / belongings that may require cover. An example of a few things that a high net worth insurance broker may arrange cover for are as follows:
- Houses
- Yachts
- Aeroplanes
- Helicopters
- Rare art and antiques
- Expensive jewellery
- Classic cars
- Business Insurance
- Life insurance
- Insurance for construction sites
As you’ll appreciate, the range is rather diverse so finding a broker with the right experience is definitely beneficial.
How can I NEED ADVICE help with my search for high net worth insurance brokers?
If you have something that needs insuring and are not sure who to speak to, please complete the contact form with details of what it is and we will ask an experienced contact to reach out and give you the advice that you need.
They will be able to tell you the costs and options. There is no obligation to go ahead with any high net worth insurance brokers that we introduce you to.
They are experienced, which can boost your chances of being approved.
