The False Dichotomy: They’re Symbiotic

For wealthy individuals, the idea of “life versus wealth” is a confusing divide. When a serious illness results in $5 million in medical expenses, it not only puts health at risk but also impacts the money set aside for future generations or businesses. On the other hand, a legal case against your assets, like a claim for a luxury home, can lead to health problems linked to stress, resulting in a negative loop. So, what’s the best approach? It's wise to arrange insurance that protects your life while also ensuring that your wealth keeps your living standards high.

Life First: Beyond Basic Medical Plans

Ultra-high-net-worth families require health coverage that goes beyond regular insurance. It’s important to choose “concierge medical policies” that provide access to leading specialists, such as those in the Mayo Clinic’s executive health program, offering guaranteed appointments within 48 hours. Riders for critical illnesses should include experimental treatments like CAR-T therapy and stem cell transplants, which are typically not covered by conventional plans, ensuring no lifetime benefit limits. For individuals with global lifestyles, international plans, like those from Allianz Care, offer smooth healthcare access in over 190 countries, including emergency medical evacuation by private jet—a must-have for frequent travelers.

Wealth Protection: Tailored Shields

Insurance for wealthy individuals needs to be tailored to their specific needs. Policies with limits exceeding $50 million are standard, but anyone serving on corporate boards should also consider adding coverage for “directors and officers” to protect their personal wealth from any legal issues stemming from the company. Art collectors would benefit from “agreed-value” policies, like those available from AIG Private Client Group, which eliminate arguments over value—if a Picasso were to be harmed, you would receive the pre-set amount of $20 million without any disagreements. Yacht owners ought to have “loss of use” riders in their policies, which help cover the income lost from charters during repair times, effectively making a challenging situation financially neutral.

The Hierarchy: Start with Foundations

First, focus on essential coverage for life: choose a term life policy with a high limit (10–15 times your yearly income) to support your dependents, along with a good health insurance plan. Next, consider additional financial protections: these include liability insurance, cyber insurance (which protects digital items like cryptocurrency wallets), and coverage for kidnapping and ransom, particularly important for those who travel internationally. Lastly, look into “legacy protection” options, such as life insurance trusts that keep payouts safe from estate taxes, ensuring that wealth is passed on fully.

The X Factor: Liquidity in Crisis

Affluent people frequently invest their wealth in assets that cannot be easily sold, such as private equity and real estate. An effective insurance plan features “liquidity bridges,” which allow for advances of 50% of death benefits if diagnosed with a terminal illness, as well as “collateral assignment” riders that permit borrowing against the cash value of a life insurance policy. This borrowing helps cover urgent needs without the need to sell assets at a loss.

Insurance serves to create a protective barrier rather than picking sides; it is about constructing a stronghold where life and assets support one another. For those who have diligently built both, having the appropriate insurance guarantees that neither wealth nor life is compromised during difficult times.