Rising appetite for high-net-worth insurance, even among the mass affluent

HIGH-net-worth (HNW) insurance is typically pitched at wealthy clients with assets of well over US$1 million. But a new study by Capital for Life, an international insurance advisory firm, has found that the majority of enquiries (78 per cent) for indexed universal life (IUL) policies has come from those with net worth of less than US$500,000.

Interest among the mass affluent, however, may be a double-edged sword. While it expands the traditional audience for HNW insurance, it also underscores the need for needs-based and suitability advice.

In fact, Capital for Life also found that 84 per cent of enquirers had no advice, and 64 per cent aimed to make a decision within 90 days.