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Jumbo Life Insurance $250 Million World Record Policy Sold

May 13, 2024
 min read
Carlton Crabbe
CEO, Capital for Life

Forget everything you thought you knew about life insurance limits. A staggering $250 million jumbo life insurance policy just shattered world records, revealing the immense power of jumbo life to protect the assets of high-net-worth individuals and families. HSBC Life in Hong Kong issued the new Guinness World Record jumbo life policy, showcasing the extraordinary protection available to the ultra-wealthy.

Jumbo Insurance: Not Just for the Ultra-Wealthy

While a $250 million policy makes headlines, jumbo life insurance is not just for the ultra-wealthy but also caters to a broader range of high-net-worth individuals and families, including life insurance buyers looking for substantial coverage.

Jumbo life insurance, or universal life insurance, is like traditional whole life insurance but on a much bigger scale. Jumbo life policies provide a cash death benefit that dwarfs standard coverage, easily reaching tens of millions or more. They’re designed for high-net-worth individuals with substantial assets and complex financial situations. It's crucial to select a reputable insurance company with experience in underwriting jumbo life insurance policies for high-net-worth individuals, ensuring expertise and financial strength.

This specialised approach to securing jumbo life insurance policies emphasises the importance of working with experienced insurance professionals to secure the best underwriting class and highlights the significance of complete transparency and disclosure to represent the best interests of life insurance buyers in this market.

Think of jumbo life insurance as traditional life insurance on a much larger scale. While standard life insurance may top out at around $1 million, jumbo insurance can easily offer $5 million, $10 million, and much more in coverage.

If you think you may need more than a standard whole-life policy, here’s why it might be worth considering jumbo life cover:

Estate Planning: Jumbo life insurance pay-outs can help cover hefty estate taxes, ensuring a smooth transfer of assets to your heirs without them needing to liquidate parts of your estate to cover costs.

Wealth Preservation: The death benefit can protect your family’s standard of living and preserve substantial wealth.

Business Succession: Business owners with large holdings can use jumbo life insurance pay-outs to facilitate a smooth transition for their business, minimise disruptions, and potentially protect against unexpected debts that would fall to inheritors.

Charitable Giving: If philanthropy is important to you, a jumbo life insurance policy can provide a sizable donation to your chosen causes upon your passing.

Types of Jumbo Life Insurance

As you would expect with this type of specialist high-value life insurance cover, there are different types.

Fixed Universal Life Insurance (UL): This type offers a fixed rate of return on your policy’s accumulated cash value. Your annual policy earnings are predictable, providing stability. It is a type of permanent life insurance offering long-term coverage, ensuring that policyholders benefit from premium payment flexibility, a high coverage level, and the potential to accumulate cash value over time.

Indexed Universal Life Insurance (IUL): This option links your policy’s cash value growth to the performance of a stock market index such as the S&P 500. You have the potential for higher returns, but your gains are capped. However, you’re also protected against market losses. Indexed universal life insurance policies are popular for their lower premiums, stock market-linked returns, and minimum guaranteed crediting rates, making them an attractive choice for those seeking both insurance protection and investment opportunities tailored to their risk tolerance and financial goals.

Like all financial investments, there are benefits and drawbacks to think about.

Jumbo Life Insurance Pros and Cons

It’s important to consider both the benefits and potential drawbacks:


Unparalleled Protection: Jumbo life policies provide coverage far beyond standard life insurance, starting in the millions and potentially reaching up to $250 million (so far!). This protects your wealth and eases financial burdens for your beneficiaries.

Investment Component: Some jumbo policies offer a lifetime cash income option, meaning you can take advantage of the premium you invest during your lifetime.

Tax Advantages: Death benefits are often tax-free, and cash value growth may be tax-deferred.

Estate Planning Tool: Jumbo insurance helps cover estate taxes, preserving your assets for heirs and ensuring a smooth legacy transfer.


Substantial Cost: Premiums for jumbo policies are significantly higher than standard life insurance due to the vast coverage amounts.

Complex Underwriting: The application process is often extensive, including medical examinations, financial reviews and lifestyle assessments.

Fees: These policies have several sets of fees from the cost of insuring your life to an annual policy fee. Make sure you understand the costs and get expert help.


Jumbo life insurance isn't just used by ultra wealthy families. It's a strategic tool that many high-net-worth individuals use to protect their fortunes and ensure their legacy. If you have substantial assets, complex financial holdings, or major plans for business succession or philanthropy, a jumbo policy could be the solution you've been overlooking.

Work with a knowledgeable financial advisor specialising in high-net-worth insurance solutions to get a personalised jumbo life quote and a policy for your needs. They'll help you navigate the complexities, ensuring the coverage aligns perfectly with your financial goals and legacy plans.

Creating a streamlined legacy transfer using jumbo life insurance may be the key to peace of mind for generations to come.

Frequently Asked Questions (FAQs)

What's the largest life insurance policy ever sold?

The world’s largest single life insurance policy has been taken out by an individual customer of HSBC Life in Hong Kong. This record-breaking whole-of-life policy boasts a US$250 million pay-out upon the anonymous policyholder's death and will paid to the individual’s estate. Sold to the client in 2024, it shatters the previous world record for a jumbo life insurance policy that was US$201 million bought by an American entrepreneur in 2014.

How much coverage can I get with jumbo life insurance?

While there’s no single cap, jumbo policies start at US$1 million and can reach US$100m plus, but they’re rare. Most high-net-worth people cap out in the tens of millions of dollars. The actual amount of life cover you qualify for will depend on your income, net worth, and health. Life insurance rates for jumbo policies vary based on factors such as the policyholder's health, lifestyle, and the amount of coverage sought, impacting the premiums for life insurance coverage.

Why do the wealthy choose jumbo life insurance?

Wealthy individuals use jumbo policies for reasons beyond simply providing for loved ones. These include estate tax mitigation, protecting business interests, retirement income planning and leaving philanthropic legacies. Even if you’re not ultra-wealthy, a jumbo policy might be worth exploring. It's important to disclose your health history and past health issues when applying for jumbo life insurance to ensure accurate underwriting and policy pricing.

Do I qualify for a jumbo life insurance policy?

Jumbo policies aren't for everyone. However, consider them if you: 

·      Have a high net worth but worry about potential estate taxes.

·      Own a business and want protection for key people and future growth.

·      Have complex financial needs that standard life insurance won't cover.

·      Want to leave a significant charitable legacy.

If you are not sure if you meet the criteria, consult with a financial advisor or insurance broker specialising in jumbo life insurance. They can help you assess your eligibility and explore suitable options.

Can jumbo life insurance protect my company?

Jumbo policies have several uses for businesses: protecting against the loss of a key person, funding buy-sell agreements, and providing loans to the business. When the company no longer needs the jumbo policy, it can serve as a retirement plan for the business owner or retired key person.

How do I find the best jumbo life insurance companies?

Not every life insurer provides jumbo policies. Focus on financially strong life insurance companies with a proven track record serving high-net-worth individuals. Seek specialist help and use an independent insurance broker specialising in jumbo life insurance. They can compare policies from multiple top insurers ensuring you find a plan that meets your needs.

Interested in the unique benefits of jumbo life insurance? Capital for Life is a trusted life insurance broker specialising in jumbo life cover for high-net-worth individuals and business owners in over 200 countries.  We help you maximise the value of your universal life account to achieve your financial goals. Financial advisors, tax advisors, lawyers, wealth managers, trust companies, and private banks rely on our succession planning expertise to best advise their high-net-worth clients. Elevate your financial strategy with our guidance on strategically leveraging jumbo life insurance. Contact us today to explore how Capital for Life can help you open a jumbo life insurance policy to safeguard your future.


This article is authored by Carlton Crabbe, Chief Executive Officer of Capital for Life, a specialist in providing universal life insurance accounts. The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. While the author possesses expertise in the subject matter, readers are advised to consult with a qualified financial advisor before making investment decisions or purchasing insurance products.

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