October 30, 2023

High net-worth individuals can take advantage of multiple health insurance options. With a more liberal budget, you have the freedom of choice regarding plans, including deductibles, premiums, and coverages.

There are several options available for health insurance for wealthy individuals that can maximize your budget and give you the greatest level of protection.

Health Insurance Options for Wealthy Individuals

There are three primary types of health insurance that high-net-worth individuals can purchase.

Group/Small Business Health Insurance

Employer-sponsored health insurance tends to have lower premiums, but they also have less flexibility. While these can be great options for those in good health, they may not always provide the coverage adults with medical conditions need.

However, if you are in good health and like the type of network your employer offers, group health insurance can be a good option.

Private Health Insurance

You can purchase private health insurance through your state’s Marketplace during the annual Open Enrollment Period. Private insurers offer different rates to compete with one another, so you may be able to get a great deal by comparing their coverages and costs.

Using private health insurance also allows you to customize your plan to fully suit your needs and preferences.

Family Health Insurance

Family health insurance plans allow you to pay for your spouse and children up to age 26. These plans offer combined coverage that allows you to care for your loved ones and your own health in one monthly premium.

Why Do Wealthy People Need Health Insurance?

Although you may have a high income, being a wealthy person does not mean you will never get sick or injured. Without health insurance, medical bills can quickly add up, and even someone with a high net worth could find themselves struggling financially.

Imagine that you need surgery. Without health insurance, you could easily face a hospital bill of over $100,000. The financial risks of not being insured make health insurance a wise investment for anyone, just like life insurance.

Health Risks Increase as You Age

The older someone gets, health risks can increase. Seniors are more prone to arthritis, heart disease, and age-related conditions that often require prescription medications and specialist care to manage.

Having health insurance will allow you to get preventative care that makes aging easier. It can also help you cover the costs of any conditions that arise as you get older.

Overall Health Costs Are Rising

Paying out of pocket is no longer ideal for even wealthy individuals. An annual physical with blood work could easily cost close to $1,000. Routine diagnostics tests for common health symptoms can also be in the thousands without insurance.

Furthermore, the cost of medication is higher than ever, which means you are at a disadvantage if you need treatment. For a high net-worth person, having health insurance is a good way to protect their assets.

Does your family have a history of cancer, heart disease, or arthritis? Your family history increases your own risk of developing certain conditions. Health insurance can help you make preventative care more affordable and cover early intervention treatment.

High Net-Worth Healthcare Needs

Before you decide on a health insurance plan, you should consider these qualities.

Privacy & Confidentiality

Every health insurance provider is required to protect your information under the Health Insurance Portability and Accountability Act of 1996 (HIPAA). These are national standards that prevent any medical company from releasing a person’s medical records or identifying information without their consent.

Plans Tailored to You

Customizable coverage will help you meet specific needs, such as specialist care or prescription medication. If you want to pay for your family members as well, then you need a health insurance provider that offers the best coverage for your loved ones and their health needs.

International Travel Considerations

When you travel overseas, it is helpful to have a plan that extends its coverage wherever you go. Consider providers that can accommodate your lifestyle, so you always have protection.

Maximum Flexibility

The flexibility of a health insurance plan can make the difference between getting the best care or having to pay outside of your network at full price. High net-worth individuals need maximum flexibility to ensure they always have the coverage they need.

A high-deductible health plan can offer a lower monthly or annual premium with a higher total amount to pay before you are completely covered. Having a high deductible health plan may allow you to save more on taxes if you also contribute to a Health Savings Account (HSA).

Your Health Insurance Team

A company’s customer service is vital to having a good experience. Because you are making such a considerable investment into their business, you deserve a helpful, responsive health insurance team that is always available to answer your questions and offer guidance.

Other Factors for High Net-Worth Individuals to Consider

Being a wealthy person allows you to increase your health insurance spending to access greater benefits than someone with a lower income level.

Concierge Medicine

Concierge medicine is a type of healthcare that typically offers 24-hour, on-demand access to physicians of all specializations. Whenever you have a concern, you can turn to a doctor immediately, usually through the convenience of a telehealth portal.

Those whose plans cover concierge medicine are able to get assistance at any time without long waits or the need to commute. Additionally, concierge medicine can come with additional benefits, such as same-day visits.

Employer Coverage

Employers can cover your entire health insurance cost or pay a portion of it. These coverages may also extend to your family and even after retirement.

Employee health insurance plans are generally more affordable than private health insurance, and they might be ideal for those who do not mind paying out of pocket for some expenses because they do not have any serious underlying conditions.

Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) are similar to health insurance, but instead of paying a provider, you deposit a certain amount of money each month into a special account. You can then use this account to pay medical bills.

HSAs also have tax savings, so they can be ideal for wealthy individuals who want to lower their annual dues. Instead of using an HSA alone, many high net-worth individuals combine their HSA with an employer or high-deductible health insurance plan.

Disability Insurance

If you become disabled, disability insurance covers income you lose when you can’t work. This type of coverage may never be necessary, but it can help you if you are injured and need additional financial support for home care, food, housing, and more.

For wealthy people, disability insurance is a preventative type of insurance that protects their income if they become disabled and their income decreases.

Critical Illness Insurance

Investing in critical illness insurance should also be another consideration. It covers medical emergencies and serious conditions like cancer, heart attacks, and strokes.

Health insurance plans may not always offer enough coverage for these health problems, so having additional coverage can bring you peace of mind.

Long-Term Care Insurance

As you age, you may one day require home care to maintain your health. If you are ever injured or disabled, you could also need long-term care from a nurse. This type of insurance provides financial coverage for those cases.

Finding the Right Health Insurance for You

At Live Health, we can help you find the best health insurance for your lifestyle. Whether you carry high risks or want maximum protection, our team of experienced health insurance brokers will customize your offers and find the perfect plan.

Reach out today to schedule a call. We are always here to help.

Scroll to Top