The client is a man his 30s, UK resident and a non-smoker.
As a condition of his pre-nuptial agreement, his spouse was entitled to receive a £10 million payment were he to pass away.
Much of his family’s wealth is tied up in trusts, and by seeking life insurance, the client was seeking to avoid a potential claim that would disrupt the family’s investment strategy by forcing them to liquidate their positions at an inopportune time.
Tailored solution provided to client by John Lamb Hill Oldridge
We recommended a convertible term policy with a 30-year term. The sum assured was £10 million, to cover all of the potential liability under the pre-nup. The annual premium was £5,640.
One of the most advantageous features of the policy was the option to convert it to a whole-of-life policy. This additional flexibility could also allow the client to use the plan to cover inheritance tax liabilities in the future.
The policy also included an indexation option to protect the sum assured from the impact of inflation over the course of the term.
Arranging high value life insurance to cover a range of events is very much an area of speciality for John Lamb Hill Oldridge.