Is it too late? When is the best time to get life insurance?

December 19, 2025

Find out when the best time is to get life insurance and whether it is too late to buy insurance, with guidance tailored for high-net-worth families. If you are already wealthy, why think about insurance? It is a question frequently asked by Singapore’s high-net-worth individuals (HNWIs). 

Is it too late to buy insurance? When is the best time to secure coverage and why it matters

If you are already wealthy, why think about insurance? It is a question frequently asked by Singapore’s high-net-worth individuals (HNWIs). While significant wealth may seem to reduce the need to buy insurance, the reality is far more complicated. For HNW  families, insurance is not just medical protection — it is a sophisticated tool for safeguarding liquidity, ensuring smooth wealth transfer, and managing cross-border tax exposure.

But common questions remain: When to get life insurance? When is the best time to get life insurance? Is it too late to get insurance if you have waited?

Here’s how insurance continues to play a strategic role in the financial landscape of HNW families.

Why HNWIs in Singapore can’t just self-insure

Many HNW  families choose to buy insurance not because of financial need, but because of strategic necessity.

Illiquid assets

HNW families often hold their wealth in businesses, private equity, or real estate. Without life insurance that provides liquidity, heirs may be forced to sell assets quickly during unfavourable market conditions.

Estate equalisation

When heirs inherit assets of different types or values, insurance becomes a straightforward way to equalise distributions, particularly useful for families with operating businesses or multi-property portfolios.

Cross-border inheritance tax

Those with assets or heirs in multiple jurisdictions face varied estate taxes. Insurance helps ensure liquidity when global tax obligations arise.

Philanthropy

Insurance enables structured long-term charitable giving, allowing families to support their philanthropic legacy without reducing core wealth.

In essence, insurance helps preserve, structure, and transfer wealth exactly as intended.

When is the best time to get life insurance

Timing matters—especially for HNWIs with long-term legacy goals.

Leveraging peak health for premium advantages

The earlier you decide when to get life insurance, the better. Buying life insurance while in good health keeps premiums significantly lower and unlocks access to more sophisticated, high-value policy structures.

Integrating insurance into your wealth strategy

Understanding when is the best time to get life insurance allows proper coordination with trusts, succession plans, or family office structures. Buying insurance early ensures liquidity can be positioned precisely where it is needed during critical moments.

Anticipating life's major milestones

Events such as international relocation, business restructuring, or preparing heirs for succession are strong triggers to buy insurance. Securing coverage early ensures alignment across multiple jurisdictions.

The best time to get life insurance is before age and health changes reduce your options.

Is it ever too late to buy insurance?

For many HNW  individuals, the real concern is: Is it too late to get insurance if you are older?

For example, a 55-year-old business owner with assets and heirs in multiple countries faces rising premiums, fewer available products, and more complex tax obligations if they delay. However, it is rarely too late to buy insurance.

Mature clients can still benefit from:

 

Policies

Purpose

Single-premium policies

Immediate coverage without long-term commitments

Private medical coverage

Offers global healthcare access and complements self-funding

Trust-based planning

Structures intergenerational wealth transfers

Even later in life, bespoke insurance structures can still provide liquidity, support inheritance plans, and manage future tax exposure.

What should HNWIs in Singapore ask before signing on

Before you buy life insurance, consider:

  • Will heirs have enough liquidity without selling core assets?
  • Does the policy complement trust or family office structures?
  • How does it address cross-border tax or regulatory requirements?
  • Can it support philanthropic intentions after your lifetime?
  • Does coverage integrate well with wills, foundations, or succession plans?
  • Is the policy flexible enough to adapt to changes in residency or citizenship?

Which insurance products truly serve the wealthy

For HNWIs deciding when to get life insurance, three solutions tend to offer the strongest long-term outcomes.

1. Whole Life Insurance

Whole lfe insurance provides essential liquidity for estate taxes, business continuity, and inheritance equalisation. When HNW  families buy whole life insurance, they secure a guaranteed payout that protects their wealth regardless of market conditions at the time of the policyholder's passing.

2. Indexed Universal Life (IUL)

Indexed Universal Life (IUL) policies combine protection with growth potential. They allow participation in market gains while providing downside protection, making them ideal for long-term wealth planning.

3. Index-linked Savings Plans

Index-linked savings plans offer market-linked growth with guaranteed minimum returns, helping HNW  individuals accumulate wealth while maintaining insurance benefits.

While other policies, such as Private Placement Life Insurance (PPLI), private medical coverage, or key-person insurance, can still play a role, Life Insurance, IUL, and index-linked savings plans often form the foundation for HNW families in Singapore.

Debunking wealthy misconceptions

Even HNW  families hold misconceptions about when to get life insurance or whether they need it at all.

Myth

Reality

“I have enough money; I don’t need insurance.”

Self-funding locks up liquidity and may force asset sales at unfavourable times.

“Insurance is just for basic protection.”

Modern insurance supports tax efficiency, succession, philanthropy, and estate stability.

"It’s too late to buy insurance now.”

Many late-life solutions still exist for inheritance and liquidity planning.

How to know whether it is time to review or buy insurance

Buying or reviewing insurance becomes especially important when:

  • You plan to pass assets to heirs in different countries
  • You want to prevent heirs from having to sell properties or businesses
  • You seek clarity on liquidity for global tax obligations
  • You aim to create long-term, structured philanthropic contributions

These moments often signal when the best time is to get life insurance.

Why early action matters for HNW  families

Early action ensures your insurance strategy aligns with multi-jurisdictional estate plans, long-term liquidity needs, and future wealth-transfer objectives. The earlier you decide when to get life insurance, the more flexibility you retain. However, even later in life, it is rarely too late to buy insurance that protects your legacy.

Protect yourself and the people you love with the right insurance plan

At Sun Life, we provide a range of insurance solutions to help our High Net Worth (HNW) and Ultra High Net Worth (UHNW) clients secure their legacy, manage wealth and plan for business succession. Through our network of specialised partners, we provide protection today and continuity for the future. Contact us to explore our solutions and achieve lifelong financial security.

1. When to get life insurance?
The optimal time is during early career or wealth-accumulation years, when premiums are lowest and cash values can compound over time.

2. When is the best time to get life insurance?
The best time to get life insurance is as early as possible, ideally before age 45–50, when you can still qualify for favourable underwriting.

3. Is it too late to get insurance at older ages?
Not necessarily. While premiums are higher and underwriting is stricter, alternatives, such as simplified underwriting, whole life, or IUL structures, can still support liquidity and wealth transfer.

The contents of this article are derived from various sources obtained electronically, for convenience and information purposes only. It is not catered for any particular person or entity, may not represent the views of the general market or industry, and do not constitute financial, legal, tax or other advice. While Sun Life believes that the contents of this article are true and correct as at the time it is published, Sun Life has no obligation to update you of any contents of this article which may subsequently change, and Sun Life is not responsible for any loss or detriment that results from a sole reliance on the contents of this article. This article is not meant to be, and does not amount to, any solicitation or promotion of any investment or products or services, or any advice to purchase any insurance product. Before entering into any investment, buying an insurance policy or other financial product, or availing any services, you should take independent legal, tax, financial or other advice as you may deem fit, at your own costs and considering your own circumstances.

 Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable (if any) may be less than the total premiums paid. This information article is for general information only and does not take into account the specific investment objectives, financial situation or particular needs of any specific person. You should seek advice from a financial adviser regarding the suitability of the policy before making a commitment to purchase. In the event that you choose not to do so, you should consider whether the product in question is suitable for you. 

Sun Life Assurance Company of Canada is an insurance company federally incorporated in Canada, with OSFI Institution Code F380 and its registered office at 1 York Street, Toronto, Ontario, Canada M5J 0B6. It is regulated by the Office of the Superintendent of Financial Institutions, Canada. Sun Life Assurance Company of Canada Singapore Branch (UEN T19FC0132B) is registered with the Accounting and Corporate Regulatory Authority of Singapore as a foreign company, with its registered office at 50 Raffles Place, #26-04 Singapore Land Tower, Singapore 048623. It is licensed and regulated by the Monetary Authority of Singapore. Where Sun Life Assurance Company of Canada Singapore Branch is referred to as “Sun Life Singapore”, this is strictly for marketing and branding purposes only, and no legal significance is expressed or implied. Sun Life Assurance Company of Canada is a member of the Sun Life group of companies. The Sun Life group of companies operates under the “Sun Life” name. Sun Life Financial Inc., the publicly traded holding company for the Sun Life group of companies, is not a product offering company and is not the guarantor of the obligations of its subsidiaries.

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