Preserving wealth for the next generation
How the right coverage can make it possible to transition wealth
The net worth of Americans age 70 and older has reached nearly $35 trillion.1 Protecting your assets through insurance will assist with the wealth transfer to the next generation.
We understand you have a busy and complex life. As your wealth increases, your needs may evolve as well. You may undergo life changes such as homeownership, family, careers, volunteering, employing domestic staff, international travel and collecting prized possessions. Your lifestyle means you face diverse risks. You may also be more susceptible to risks simply because you have more assets or are in the public eye more than the average person.
Consider the following
Insurance is fundamental to a sound financial plan; it’s about preparing for the future. Many successful families or individuals are not adequately protected because insurance is often purchased before or during the initial wealth accumulation and is not revisited afterward.
Your home is probably one of the largest investments you will ever make. About 2 of every 3 homes in America are underinsured.2 Covering jewelry, art and other collectibles under the personal property portion of your homeowners policy could leave you heavily underinsured, as many policies have sublimits or utilize depreciation and will not provide full replacement value. Home and auto policies offer liability coverage, but it’s often not enough. A lawsuit can destroy your wealth in an instant.
Insurance can be complicated, especially when it comes to financially successful individuals and families. Some questions to ask yourself:
- Is your home(s) insured to its replacement value?
- Do you have adequate insurance for your collections?
- Is your family trust covered under your insurance?
- Are you protected when serving on the board of your local nonprofit?
- Do you have adequate insurance limits to protect your net worth if sued?
- Will you have enough liability coverage if someone else is uninsured or underinsured?
- Could you retain additional risk and increase your deductibles to get premium savings?
- What if your nanny decides to sue for discrimination?
- What steps have you taken to protect your identity?
The right insurance can help provide you with peace of mind, knowing that you have protection for your assets and your family’s wealth — now and in the future.
How Nationwide Private Client responds
Nationwide® Private Client exists to help make you and your family whole again in the event of a loss. Our coverages were designed with you in mind.
| Coverage | Nationwide Private Client coverage description |
|---|---|
| Replacement cost | When all policy conditions are met, for a covered loss to your home we will pay the cost of repair or replacement without deduction for depreciation and without regard to the amount of insurance. |
| Trusts, LLCs and other entities | Trusts and/or LLCs are included as an insured on our homeowners policy for dwelling, other structures and personal liability coverage when the protection endorsement is added. You can also add the trust and or LLC as an additional insured on the homeowners policy or endorse it onto the excess liability policy. |
| Identity theft | A $25,000 limit is included in our homeowners policy with options up to $100,000 to cover identity theft expenses should an identity theft or fraud occur. Identity monitoring is also included for you and another adult member of the household. With automated reviews of your credit file and scans of the deep web and dark web for your personally identifying information, you’ll get an alert so you can take immediate action to minimize any damage.3 |
| Excess liability policy | Limits are available up to $25 million. An excess liability policy can add another layer of liability coverage beyond that of your underlying home, auto or other policies. |
| Uninsured/underinsured liability | This optional coverage can be added to our excess liability policy with available limits up to $5 million to provide additional protection in the event you are involved in an accident with an uninsured or underinsured at-fault driver or negligent third party. |
| Expanded defense | Expanded defense allows for your own trusted counsel to consult with our defense team on a covered defense. Limits are available up to $250,000 with our excess protection endorsement. |
| Not-for-profit directors & officers liability | This optional coverage has limits available up to $1 million that can be added to our personal excess liability policy. The coverage protects your financial well-being when serving on a qualifying board of directors. |
| Collections policy | Our collections policy offers broad coverage for your jewelry, fine arts, furs, wine and other collectibles. Choose either itemized or blanket coverage, with no sublimit for theft or mysterious disappearance. It includes coverage for accidental breakage, newly acquired items, restoration and diminished value, all with no deductible. |
| Limited employment practices liability | This optional coverage can be added to our excess liability policy with available limits of up to $500,000. The coverage protects against allegations of wrongful employment acts such as wrongful termination and discrimination. |
What you can do today
- Have a trusted wealth manager or financial professional and legal counsel. It’s always good to have an expert who can help structure a will, create a trust, plan for retirement, and manage investments and wealth allocations.
- Find a trusted insurance professional. Build a relationship with an agent who has expertise with financially successful individuals and families.
- Get a protection review. A protection review can help reveal coverage gaps, recommend risk mitigation techniques and uncover potential discounts. Periodic reviews should follow to help make sure you remain adequately insured.
- Understand your risks and exposures. Invite the whole family to sit down with your insurance professional together. You and your family should understand the exposures, risks and perils applicable to your lifestyle. For example, what are the potential risks of holding dinner parties at your house, posting on social media, letting someone drive your car or traveling abroad?
- Get an excess liability policy. Liability limits should at least equal your net worth and take into account your future earnings.
- Utilize your trusted advisor to help make a plan. Protect your current and future wealth. Understand this plan isn’t “one and done,” but should be ongoing with continued monitoring to make adjustments as needed.
- Educate your children and other family members about financial responsibility. Make sure they understand that when it comes to insurance, the lowest price may not mean adequate coverage.
- Begin the dialogue about wealth transfer with family members. Communicate any stipulations that help preserve lifelong financial stability. Let them know an inheritance isn’t a license to be complacent. Discuss your family values (lifestyle, philanthropy, etc.) and your overall goals and intentions for the inheritance. Be open about your fears and beliefs about money.
[2] “Underinsurance: Is your home covered for all it’s worth?,” nationwide.com/lc/resources/home/articles/underinsurance (accessed February 21, 2022).
[3]Monitoring, portal and resolution assistance services are provided by Generali Global Assistance. There is no additional charge for these services, but enrollment is optional.