--- title: 5 Reasons High Net Worth Individuals Need Life Insurance description: It’s no doubt that high net worth individuals need life insurance. We’ve put together the top 5 reasons in this overview here. image: https://blog.advisors-resource.com/hubfs/55p21.jpg --- [Skip to content](https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance#main-content) ![advisors-resource-company-logo-horizontal-full-color-green-1](https://blog.advisors-resource.com/hs-fs/hubfs/advisors-resource-company-logo-horizontal-full-color-green-1.png?width=150&height=65&name=advisors-resource-company-logo-horizontal-full-color-green-1.png) - [Home](https://advisors-resource.com/) - [Who we Serve](https://advisors-resource.com/who-we-serve/) Show submenu for Who we Serve - [CPAs](https://advisors-resource.com/cpas/) - [Business Owners](https://advisors-resource.com/business-owners/) - [Financial Professionals](https://advisors-resource.com/financial-professionals/) - [Webinars & Blogs](https://advisors-resource.com/webinars-case-studies/) Show submenu for Webinars & Blogs - [Our Blog: Industry Insider](https://blog.advisors-resource.com/blog) - [Webinars](https://advisors-resource.com/webinars-case-studies/) - [Contact](https://advisors-resource.com/contact-us/) Open main navigation Close main navigation - [Home](https://advisors-resource.com/) - [Who we Serve](https://advisors-resource.com/who-we-serve/) Show submenu for Who we Serve - [CPAs](https://advisors-resource.com/cpas/) - [Business Owners](https://advisors-resource.com/business-owners/) - [Financial Professionals](https://advisors-resource.com/financial-professionals/) - [Webinars & Blogs](https://advisors-resource.com/webinars-case-studies/) Show submenu for Webinars & Blogs - [Our Blog: Industry Insider](https://blog.advisors-resource.com/blog) - [Webinars](https://advisors-resource.com/webinars-case-studies/) - [Contact](https://advisors-resource.com/contact-us/) Sep 24, 2019 9:17:14 AM # 5 Reasons High Net Worth Individuals Need Life Insurance [Travis Pence](https://blog.advisors-resource.com/blog/author/travis-pence) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance) [Twitter icon](https://twitter.com/intent/tweet?url=https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance) [envelope icon](mailto:?body=https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance) When it comes to [life insurance](https://lp.advisors-resource.com/life-insurance), many people assume that those with a high net worth don’t need that kind of financial protection. After all, if someone has an estate worth millions, what is a life insurance policy going to protect?  ## Financial Protection with Life Insurance However, there are plenty of reasons why your wealthy clients need to get a plan in place for the inevitable. Today, we’re going to highlight the top five benefits of life insurance for those who have a high net worth. ### **1. Taxes** Currently, the minimum amount for an estate to incur federal taxes is $11.4 million. Although this figure is higher than in previous years, there is no guarantee that it will stay where it is - it could come down in the future. On top of that, if your clients live in a state with lower estate tax thresholds, they could be looking at even more taxes being taken out once they’re gone. Fortunately, life insurance can help mitigate these losses. ***Related Post:*** [Tax Benefits of Life Insurance](https://blog.advisors-resource.com/blog/tax-benefits-of-life-insurance) ### **2. Personal Debts** Being wealthy doesn’t automatically mean that a person doesn’t have debt. For high net worth individuals, that debt could also be substantial, cutting into the amount left over for loved ones. Without an insurance plan in place, family members could be forced to sell assets to cover these debts, which will diminish the legacy left behind. ### **3. Wealthy Lifestyles** For the most part, wealthy people live life to a much higher standard. Because of this, the cost of living can be substantially higher than it is for those with more modest salaries. Drafting a cost effective insurance policy can help protect your client’s loved ones from having to make sacrifices after they’re gone. Property taxes, mortgages, monthly expenses - all of these things can add up and drain an estate quickly. If your clients are the primary breadwinners, they need to make sure that their loved ones can maintain the lifestyle to which they’ve become accustomed. ### **4. Business Debts** Chances are that your high net worth clients [own a business](https://advisors-resource.com/business-owner-succession-strategy/) or two. In some cases, those companies may have substantial outstanding debts, which could become a liability once your client dies. The business owner is usually key to the value of the business. The profitability could weaken once he or she is gone. A comprehensive life insurance policy could mitigate those losses and keep the company afloat afterward. ### **5. Terminal or Long-Term Illnesses** No matter how wealthy someone is, diseases can strike at any time. Unfortunately, long-term health care can be highly expensive, particularly if your clients want in-home care. Even with health insurance, these costs can be thousands of dollars per month, which can wipe out the sturdiest of retirement or savings plans. Today's policies may have living benefits that address these needs. ### **Contact Advisor’s Resource Company Today** Building a high net worth insurance plan doesn’t have to be complicated. Let our team assist you in bringing the [best policies](https://advisors-resource.com/the-policy-tracker/) to your clients so that they can have peace of mind.   [Insurance](https://blog.advisors-resource.com/blog/tag/insurance), [high net worth](https://blog.advisors-resource.com/blog/tag/high-net-worth) ## Related posts [![Business Owner Retirement](https://blog.advisors-resource.com/hs-fs/hubfs/bigstock-Old-male-accountant-in-budget--357346868-feature.jpg?height=200&name=bigstock-Old-male-accountant-in-budget--357346868-feature.jpg)](https://blog.advisors-resource.com/blog/business-owner-retirement-2020-update) [Business Owner](https://blog.advisors-resource.com/blog/tag/business-owner), [Planning](https://blog.advisors-resource.com/blog/tag/planning), [Retirement](https://blog.advisors-resource.com/blog/tag/retirement), [Universal Life Insurance](https://blog.advisors-resource.com/blog/tag/universal-life-insurance) ## [Business Owners Aren't Saving Enough \[2020 Retirement Update\]](https://blog.advisors-resource.com/blog/business-owner-retirement-2020-update) [Travis Pence](https://blog.advisors-resource.com/blog/author/travis-pence) Nov 15, 2020 5:00:00 PM Given the substantial blow the economy has taken as a result of the COVID-19 Pandemic, as well as... [Read more](https://blog.advisors-resource.com/blog/business-owner-retirement-2020-update) [![Cost-of-Insurance](https://blog.advisors-resource.com/hs-fs/hubfs/Cost-of-Insurance.jpg?height=200&name=Cost-of-Insurance.jpg)](https://blog.advisors-resource.com/blog/true-cost-life-insurance) [Finance](https://blog.advisors-resource.com/blog/tag/finance), [Insurance](https://blog.advisors-resource.com/blog/tag/insurance) ## [The True Cost of Life Insurance](https://blog.advisors-resource.com/blog/true-cost-life-insurance) [Travis Pence](https://blog.advisors-resource.com/blog/author/travis-pence) Nov 15, 2017 8:19:06 PM [Read more](https://blog.advisors-resource.com/blog/true-cost-life-insurance) [![life insurance ](https://blog.advisors-resource.com/hs-fs/hubfs/ARC%20Headers-1.png?height=200&name=ARC%20Headers-1.png)](https://blog.advisors-resource.com/blog/now-is-the-best-time-to-buy-life-insurance) ## [Now Is The Best Time To Buy Life Insurance](https://blog.advisors-resource.com/blog/now-is-the-best-time-to-buy-life-insurance) ![Picture of The Advisors Resource Team](https://blog.advisors-resource.com/hs-fs/hubfs/advisors-resource-company-profile-image-green-white.jpg?width=50&name=advisors-resource-company-profile-image-green-white.jpg) [The Advisors Resource Team](https://blog.advisors-resource.com/blog/author/the-advisors-resource-team) Jun 22, 2020 12:32:22 PM If you are in the market to purchase life insurance, now may be the best time to move forward.... [Read more](https://blog.advisors-resource.com/blog/now-is-the-best-time-to-buy-life-insurance) facebook-f icon linkedin-in icon Twitter icon instagram icon --- [![advisors-resource-company-logo-horizontal-full-color-green-1](https://blog.advisors-resource.com/hs-fs/hubfs/advisors-resource-company-logo-horizontal-full-color-green-1.png?width=500&height=214&name=advisors-resource-company-logo-horizontal-full-color-green-1.png "advisors-resource-company-logo-horizontal-full-color-green-1")](http://advisors-resource.com) 446 Houston St. Coppell, TX  75019 Copyright © 2026, Advisors Resource Company ![](https://px.ads.linkedin.com/collect/?pid=6950468&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Travis Pence", "url" : "https://blog.advisors-resource.com/blog/author/travis-pence" }, "dateModified" : "2020-10-01T21:56:11.099Z", "datePublished" : "2019-09-24T14:17:14.000Z", "headline" : "5 Reasons High Net Worth Individuals Need Life Insurance", "image" : [ "https://blog.advisors-resource.com/hubfs/55p21.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.advisors-resource.com/blog/5-reasons-high-net-worth-individuals-need-life-insurance", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.advisors-resource.com/hubfs/advisors-resource-company-logo-horizontal-full-color-green.png" }, "name" : "Advisors Resource Company" } } ```