What Is The Largest Life Insurance Policy You Can Get?

Life insurance is simple in concept. You purchase a policy with a certain amount of cover and pay premiums to maintain that coverage.

If you pass away while your cover is active, your beneficiary—a spouse, a child, a friend, or even a charity—can file to claim the benefits.

The insurance provider reviews the claim to ensure there is no fraud and then pays the death benefit, thus guaranteeing the financial future of your beneficiary.

There’s a world of difference between different levels of life insurance cover, though. A decreasing life insurance policy meant to pay off a mortgage will do that, but that’s all.

If your mortgage wasn’t your most significant debt or your beneficiary doesn’t benefit from that payoff, it isn’t as worthwhile.

On the other hand, if you have a policy worth £1,000,000, that money can be life-changing for your beneficiary and even be the foundation of generational wealth. It doesn’t take much to be in the top 5% of the UK, after all.

That begs the question: what is the largest life insurance policy you can possibly get? Is there a limit? What challenges do you face getting a larger policy?

What is the Most Valuable Life Insurance Policy Ever Sold?

While most people here in the UK are only seeking cover ranging between £100,000 and £500,000, these are common numbers. What are the most valuable policies ever sold?

Note that the prices below are converted from USD to GBP.

#5: £11.8 Million

This policy, worth $15 million USD, was sold by the company True Blue Life Insurance. The client who purchased it did not want to be named but reported an annual income of around a million dollars.

The goal of the life insurance policy was as income replacement for the client’s family should he pass away; essentially, it would be fifteen years of his regular income.

The policy was also structured as an income replacement with a million-dollar annual payment rather than a single large lump sum.

Moreover, the insurance company would invest in the payout, and the growth it received would also go towards future payments for the client’s family.

#4: £32.4 Million

Clocking in at $41 million USD, this was another anonymous client who was worried about his debts. The policy was sold by Pinney Insurance.

There are no actual details on this one, and it’s barely still in the top five, so chances are it’s not likely to get much more scrutiny unless it ends up claimed.

#3: £159 Million

One heck of a jump! This formerly second-place life insurance cover was just over $200 million USD and went to one of many rich Silicon Valley tech billionaires.

This policy was primarily aimed at estate planning and would help cover the taxes on the client’s estate should they pass.

As a way to ensure that as much money goes to their beneficiaries as possible, it’s certainly not a bad idea.

#2: £167.5 Million

The current number two was a policy issued by Dunhill Marketing and Insurance, one again for a client who wishes to remain anonymous but is likely a Silicon Valley billionaire.

To give you an idea of how extreme these kinds of insurance policies are, the annual premium for this policy (total value of $212 million USD) is a whopping $6,148,000.

Spending more than many people ever make in their lives to maintain a life insurance policy is undoubtedly a choice available to the ultra-wealthy, and it’s one that many can take.

#1: £197.5 Million

As of February of this year, HSBC holds the new world record for the largest life insurance policy ever sold, which is worth $250,000,000 USD.

Unlike the previous two largest policies, this one is a whole-of-life cover, so it will be guaranteed to pay out upon the death of the client.

Another thing you may find interesting about this policy is the location. It’s not a US Silicon Valley entrepreneur but an ultra-wealthy individual in Hong Kong.

Obviously, when the annual premium is itself in the millions, this kind of cover is outside the realm of what we mere mortals can afford. But it’s an excellent example of the core point we want to make:

There’s no limit to the amount of cover you can get. The only limits are on how much you can pay to maintain that coverage and on getting a life insurance provider to issue the cover in the first place.

As it turns out, you can get just about anything when you have enough money at your disposal.

What’s the Longest Term Life Insurance Policy You Can Get?

Another related question you might have is how long the longest term you can get is for a life insurance policy.

While the flippant answer is to say “as long as you live” and point to whole-of-life insurance cover as the answer, that’s not really the question.

Whole-of-life insurance cover lasts as long as you last, but it’s also not a comparable product, as it operates on different terms, works differently at its core, and costs more.

Term life insurance is almost always limited to 40 years. That said, some insurance providers will offer a specific longer-term product only to people under 30.

These longer-term policies may have 50-year or even 60-year terms! You can still potentially outlive them, so they constitute term life insurance, but they’re only issued to people who are young enough to make it worthwhile for an insurance provider.

If you’re already 50, you won’t find a 60-year term policy available because the list of people who have historically outlived that kind of policy can be counted on one hand.

That makes it a “losing bet” from the insurance provider’s perspective.

For most people, 40 years is the longest term you can buy without getting a special deal with the insurance provider. If you need something longer, whole-of-life insurance still exists to fill that role.

What’s the Largest Life Insurance Policy You Can Get?

We don’t have an answer to this one. As we mentioned above, there is no functional limit to the amount of life insurance coverage you can have.

If you have a billion-pound net worth and want to get a new world record policy, you can certainly do so, and all you need to do is talk to the insurance company you want to underwrite the policy for you.

Of course, if you have a billion-pound net worth, you might not be reading our blog. (If you are, call us!)

If you want to get the best possible life insurance cover, we can help. We’ve put together a simple and easy form you can fill out, which you can use to compare life insurance quotes from all of the best providers in the UK.

Whether you want a small decreasing-term policy to cover your mortgage or a million-pound policy to ensure the long-term financial well-being of your family and loved ones, all you need to do is fill out that form and get quotes sent directly to you to compare.

Is a Larger Policy Better?

Not necessarily!

The larger the insurance policy, the more likely it is to have riders, disqualifying conditions, quirks of contract, or other roadblocks to successful management.

For example, consider genetic testing. In almost all circumstances, genetic testing is barred, and insurance providers are not allowed to use it in their determinations.

However, there is one notable exception. If you’re seeking a policy with over £500,000 in coverage, you may have to undergo a genetics test to see if you have the traits that make you predisposed to Huntington’s Disease.

This is the sole exception to the genetics code of conduct that insurers voluntarily adhere to. You can read more about genetics and life insurance here.

There may also be other quirks. The larger your cover, the more likely you will end up with a customized contract rather than the same sort of contracts offered to most people when they sign up for cover. These might exclude specific causes of death.

Honestly, though, the greatest influencing factor is just finances. The larger your cover, the larger your premiums will be.

The larger your premiums are, the more likely you are to be unable to keep paying them after years or decades have passed.

After all, none of us can predict the future, including our job prospects, long-term health, and ability to continue paying premiums for a high level of coverage.

Your health is also a significant factor. The older you are and the worse your overall health, the more expensive your cover will be for any given level of cover.

If you want an unusually large policy and you have poor health, you’ll probably undergo extra scrutiny and may be denied. If you aren’t rejected, you’ll end up paying for it.

How Much Life Insurance Cover Do You Need?

Choosing how much cover you need can be one of the biggest life insurance decisions you make. Unfortunately, it’s not easy, and there are many different ways to calculate it.

One of the simplest ways is the income x10 method. With this method, all you do is take your annual income, multiply it by ten, and call it good.

So, say, for example, you’re making £75,000 per year. With this method, you would seek out a £750,000 policy. This gives your loved ones ten years of your income to use to keep going while they adapt to life without you.

A second option is to add up your debts and assets and look for the difference. Consider your mortgage, any medical, student, or other debt, costs related to funerals and other expenses, and the income you lose for however many years you lose it.

Subtract your assets from this, including savings and the value of other insurance. This gives you a ballpark figure to base your “break-even” insurance coverage.

There’s also the DIME formula. DIME stands for Debt, Income, Mortgage, and Education. This is a slightly less nuanced but easier-to-calculate version of the above.

You can also find many life insurance calculators that estimate how much you should get based on a questionnaire or a form that requires you to fill out various costs and asset estimates.

Finally, remember a few factors can be important here:

• Life insurance shouldn’t be your only financial plan. Consider investments, savings, and other assets as well.
• Due to inflation, the cost of everything will likely rise over time. Don’t forget that your payout won’t stretch as far as it will right now.
• Your income will likely go up over time. It might not be enough if your cover accounted for a much lower salary than you currently live on.

Another strategy is to buy multiple, smaller life insurance policies. You can add, remove, or adjust them as you go to account for your ongoing living expenses and situation and your plans for the future.

Will You Be the New World Record?

Unless you have millions to spend, it’s pretty unlikely that you will be the next world record holder for the largest life insurance policy sold.

It’s even fairly unlikely that you’ll make it in the top five, though the top ten or the top hundred isn’t as far out of reach. Number 6, after all, is only around £10 million, and the drop-off continues from there.

What matters, though, isn’t that you have the largest possible payout; it’s that you have the most appropriate payout.

It doesn’t do you or your loved ones any good if you run out of money for your premiums before you pass away.

Fortunately, we can help you get exactly the life insurance you need. Feel free to use our form or reach out and contact us for assistance directly. We’d be happy to help.