High-net-worth individuals often need more than standard coverage. Learn insurance strategies for asset protection, estate planning, and legacy goals. 

Do You Have the Right Insurance Coverage for Your Wealth?

As your wealth grows, so do the risks and the complexity of protecting it. High-net-worth individuals and families often face coverage gaps that standard insurance policies weren’t designed to fill. From liability exposure to tax-advantaged legacy planning, insurance can serve as a strategic financial tool, not just a safety net.

Here are a few key factors to consider when reviewing your insurance coverage:

• Standard home and auto policies may not fully protect high-value assets
• Liability exposure increases with visibility, net worth, and business activity
• Life insurance may support estate, tax, and wealth transfer strategies
• Specialized coverage may be needed for health, disability, and long-term care
• Premium financing and policy structuring can help with liquidity and flexibility

Key Insurance Strategies for High-Net-Worth Individuals and Families

1. Assess Unique Risks of High-Net-Worth Lifestyles

Elevated asset exposure
High-value homes, rare art, jewelry, vintage cars, yachts, and aircraft often exceed the limits of conventional property policies. These assets may require scheduled endorsements or entirely separate high-net-worth insurance policies that offer broader coverage and true replacement value.

Liability threats
As net worth increases, so does exposure to lawsuits. Standard umbrella policies may be insufficient. Depending on your situation, you may want to explore excess liability coverage or, for business owners, more advanced options like setting up your own insurance company (called captive insurance) to cover specific risks.

Lifestyle-based exposures
Frequent travel, cyber threats, identity theft, and the use of private staff (drivers, nannies, estate managers) all introduce additional risk. Specialized policies—such as cyber liability insurance or travel coverage—can address exposures that may not be covered under general policies.

2. Use Life Insurance for Estate and Tax Strategy

Estate liquidity and wealth transfer
Permanent life insurance, such as whole, universal, or indexed universal life, may be used to help fund estate tax obligations, equalize inheritances among heirs, or support business succession planning. These strategies may reduce the likelihood of needing to liquidate illiquid assets at inopportune times.

Irrevocable Life Insurance Trusts (ILITs)
Holding life insurance policies in an ILIT can remove the policy proceeds from your taxable estate. This approach may support more efficient wealth transfer and avoid probate delays.

Private Placement Life Insurance (PPLI)
For individuals with $30–40 million or more in net worth, PPLI may offer tax-deferred growth on alternative investments such as hedge funds or private equity. These policies can also provide estate planning flexibility, though they require careful structuring and legal oversight.

3. Plan for Health, Long-Term Care, and Disability

Long-term care costs
Future long-term care expenses could exceed $100,000 per year. Traditional LTC insurance can help cover these costs but typically offers no benefit if care isn’t needed. In contrast, hybrid policies—which combine life insurance with long-term care coverage—offer added flexibility. If care is never used, the policy still pays a death benefit to your heirs.

Disability coverage for professionals
Own-occupation disability insurance helps protect your income if you’re unable to work in your specific field due to illness or injury, even if you’re able to work in a different role. This type of coverage is especially valuable for high-earning professionals, business owners, and executives whose income depends on specialized skills or expertise.

4. Use Flexible Funding and Policy Structures

Premium financing
Some high-net-worth individuals choose to finance large life insurance premiums to avoid liquidating investment assets. This strategy involves using a third-party loan and may suit those who seek high coverage levels but want to preserve capital.

Universal life policy features
Universal life policies allow for adjustable premium payments and potential policy loans or withdrawals. These features can support long-term cash-flow and tax planning strategies, especially when integrated into a broader financial planning framework.

5. Build a Layered, Multi-Policy Insurance Structure

Rather than relying on a few large policies, high-net-worth individuals often benefit from a layered insurance approach that reflects the complexity of their lifestyle and holdings:

This layered approach helps reduce the risk of both underinsurance and redundant overlap, especially as assets, family needs, and exposure evolve.

6. Review Regularly and Work with Specialists

Annual coverage audit
As your wealth grows, your insurance should evolve alongside it. Major life changes such as acquiring new assets, transferring property, expanding your business, or changes within your family can introduce new risks or make old coverage outdated.

Collaborate with your advisory team
Insurance should not exist in a silo. Coordinating with your financial advisor, estate planning attorney, CPA, and a private insurance specialist to ensure your policies align with your overall financial, tax, and legacy planning strategies.

How a Financial Advisor Can Help Structure Your Insurance Plan:

1. Review existing coverage and asset inventory
2. Identify gaps or overlaps 
3. Coordinate with legal and tax teams
4. Recommend advanced strategies (ILITs, premium financing) 
5. Reassess annually 

How a Financial Advisor Can Support Insurance Planning

Insurance planning for high-net-worth individuals involves evaluating how each policy fits within your overall financial strategy. A financial advisor can help:

• Identify gaps or overlaps in existing insurance coverage
• Coordinate insurance strategies with your tax, estate, and investment plans
• Determine when advanced tools like premium financing or PPLI might be appropriate
• Collaborate with insurance specialists, attorneys, and CPAs to ensure alignment
• Reassess your coverage as your assets, family, or business interests change

An advisor who understands the complexity of wealth management can help guide these decisions and help integrate insurance into your long-term financial planning strategy.

Contact an advisor near you to start the conversation.

DISCLOSURES

• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.      
• EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.
• An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
• Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.
• Please consult with a CPA, tax professional, and/or attorney regarding your specific situation before implementing any of the strategies referenced directly or indirectly herein.
• There is no guarantee or warrantee that a client or prospective client that engages EP Wealth Advisors, LLC in Financial Planning services will experience investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied service, offering, report, or analysis represented here will be offered or delivered. The services offered to clients will vary and depend on several factors.
• There is no guarantee that all the services detailed herein will be offered to a client. The services EPWA offers clients is dependent on the requirements of each client. In many instances, clients or prospective clients may not have a need for all or some of the services detailed.