Term Insurance for High Net Worth Individuals

Term insurance for high-net-worth individuals (HNIs) is a financial tool designed to protect substantial and rare assets and provide significant death benefits in case of unforeseen events.

It offers an affordable way to secure the family’s future by covering the estate taxes, and debts, and providing liquidity for wealth preservation.

What do you mean by High net worth individuals?

High-net-worth individuals, or HNI refer to individuals who hold assets stocks and bonds, exceed a fixed amount and who own liquid assets over 5 crores. HNIs are often targeted by financial institutions for specialized investment products, wealth management services, and personalized banking solutions due to their significant financial resources.

Types of High-net-worth individuals or HNI’s

In India, there are three types of High net worth individuals:

• High net worth individuals- Individuals who hold assets between 1 crore to crore.
• Very high net worth individuals- Individuals who hold assets between 5 crore to 25 crore.
• Ultra-high net worth individuals- Individuals who hold assets over 25 crore.

List of term insurance plans available for High-net-worth individuals:

For your instance, we have listed the best term insurance plans available for High-net-worth individuals:

Why should High net-worth individuals or HNI need a term insurance plan?

High net worth individuals or HNI need term insurance plans for the following reasons:

1. Wealth Protection:

   Despite their high net worth, HNIs often have significant financial responsibilities, such as maintaining their businesses, paying off debt and supporting dependents. Term insurance can provide extra protection to cover these responsibilities in the event of the HNI’s unfortunate demise.

2. Debt coverage:

   Despite their huge net worth, they might also have taken a loan for various reasons such as expensing of businesses to cover up any pre-existing liabilities. Term insurance can ensure that these debts are covered, preventing the burden from falling on family members.

3. Financial coverage:

   An HNI may want to ensure that their family maintains their current lifestyle even after their demise. Term insurance can provide a financial cushion to support the family, covering expenses like children’s education, living costs, or even philanthropic goals.

4. Tax benefits:

   A term insurance plan can be very helpful for saving tax for HNI’s. They can save upto 1.5 lac under Section 80C and Section 100D as per the Income Tax Act.

How to purchase term insurance for High net-worth individuals?

Following are the steps to purchase term insurance for HNI through PolicyX.com:

Step 1 - Visit the official website of PolicyX.com.

Step 2 - Click on the buy now button aligned on the right corner.

Step 3 - Click on the term insurance plans button.

Step 4 - Compare a plan that suits your needs.

Step 5 - Choose Plan, and fill in mandatory documents such as Name, mobile number and city.

Step 6 - Make payment and download the policy document.

Document required to purchase Term Insurance for HNI’s:

The following are the documents needed to purchase the term insurance for HNI’s:

1. Age Proof (Anyone):

   • Aadhar card
   • Pan card
   • Passport
   • Voter id card

2. Id Proof:

   • Aadhar card
   • Pan card
   • Passport
   • Voter id card

3. Address Proof:

   • Aadhar card
   • Pan card
   • Passport
   • Voter id card

4. Income Proof:

   • Bank Statement (Last 3 months)
   • Cancelled cheque
   • Salary slips(Last 3 months)