Term Insurance for High Net Worth Individuals
Term insurance for high-net-worth individuals (HNIs) is a financial tool designed to protect substantial assets and provide significant death benefits in case of unforeseen events. It offers an affordable way to secure the family’s future by covering estate taxes, debts, and providing liquidity for wealth preservation.
What Do You Mean by High Net Worth Individuals?
High-net-worth individuals (HNIs) refer to individuals who hold assets (such as stocks and bonds) exceeding 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 (HNIs)
In India, there are three types of High Net Worth Individuals:
- High Net Worth Individuals: Individuals who hold assets between ₹1 crore to ₹5 crores.
- Very High Net Worth Individuals: Individuals who hold assets between ₹5 crores to ₹25 crores.
- Ultra-High Net Worth Individuals: Individuals who hold assets over ₹25 crores.
List of Term Insurance Plans Available for High Net Worth Individuals
Below, we have listed term insurance plans available for High Net Worth Individuals:
| Plan Name | Entry Age | Maturity Age | Policy Term | Sum Assured |
|---|---|---|---|---|
| Max Life Smart Elite Protection | 18-65 years | 18-85 years | 5-67 years | Minimum: ₹5 Lakh Maximum: No limit |
| Tata AIA Maha Raksha Supreme | 18-65 years | 23-100 | 100 - Entry Age (Years) | Minimum: ₹1.25 Lakh Maximum: No limit |
| Bajaj eTouch Life Shield | 18-65 | 28-85 | 99 - Age at Entry (Years) | Minimum: ₹50 Lakh Maximum: No limit |
| Bandhan Life iTerm Prime | 18-65 | 23-70 | 5-70 | Minimum: ₹25 Lakh Maximum: No limit |
| HDFC Life Click 2 Protect Super | 18-65 | 85 years | 5-85 years | Minimum: ₹5,000 Maximum: No limit |
Why Do High Net Worth Individuals (HNIs) Need a Term Insurance Plan?
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Wealth Protection:
Despite their high net worth, HNIs often have significant financial responsibilities, such as maintaining their businesses, paying off debts, and supporting dependents. Term insurance can provide extra protection to cover these responsibilities in the event of the HNI’s unfortunate demise.
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Debt Coverage:
Despite their huge net worth, HNIs might also have taken loans for various reasons, such as expanding businesses, to cover any existing liabilities. Term insurance can ensure that these debts are covered, preventing the burden from falling on family members.
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Financial Security:
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.
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Tax Benefits:
A term insurance plan can be very helpful for saving tax for HNIs. They can save up to ₹1.5 Lakh 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 HNIs through PolicyX.com:
- Visit the official website of PolicyX.com.
- Click on the "Buy Now" button in the top right corner.
- Click on the "Term Insurance Plans" button.
- Compare plans that suit your needs.
- Choose a plan and fill in mandatory details such as name, mobile number, and city.
- Make payment and download the policy document.
Documents Required to Purchase Term Insurance for HNIs
The following documents are needed to purchase term insurance for HNIs:
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Age Proof (Anyone):
- Aadhar Card
- PAN Card
- Passport
- Voter ID Card
-
ID Proof:
- Aadhar Card
- PAN Card
- Passport
- Voter ID Card
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Address Proof:
- Aadhar Card
- PAN Card
- Passport
- Voter ID Card
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Income Proof:
- Bank Statement (Last 3 months)
- Cancelled Cheque
- Salary Slips (Last 3 months)
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