Insurance Solutions

Insurance as a Wealth Preservation and Estate Planning Tool

Insurance is often viewed as a means of managing risk, but it is also one of the most effective tools for preserving wealth, protecting families, and ensuring business continuity. When integrated into a broader estate and succession plan, insurance provides immediate liquidity, protects valuable assets from forced disposal, and helps families navigate financial uncertainty following death, disability, or other unforeseen events.

Despite its importance, insurance remains underutilised in Nigeria. According to industry data, Nigeria’s insurance penetration is approximately 0.5% of GDP, compared with a global average of about 7.4%, highlighting significant opportunities for improved financial protection and long-term wealth planning.

At Fiduciary Services Limited, we help individuals, families, business owners, and family offices incorporate insurance into comprehensive wealth preservation, estate planning, succession planning, and legacy strategies.

Our Insurance Advisory Services

We advise on insurance solutions that complement your overall wealth strategy, including:

• Life Insurance
• Private Placement Life Insurance (PPLI)
• Key Person Insurance
• Buy-Sell Funding Arrangements
• Business Continuity Planning
• Charitable Intention Insurance
• Insurance Trust Planning
• Cross-Border Insurance Coordination
• Insurance Reviews as Part of Estate Planning

Our role is independent and advisory; we help clients determine the most appropriate insurance structures as part of a holistic wealth planning strategy.

What Is Private Placement Life Insurance (PPLI)?

Private Placement Life Insurance (PPLI) is a specialised life insurance solution designed primarily for high-net-worth individuals, family offices, entrepreneurs, and internationally mobile families with complex wealth planning needs.

Unlike conventional life insurance, a PPLI policy can hold a professionally managed investment portfolio, which may include traditional financial assets and, depending on the applicable jurisdiction and policy terms, alternative investments. The policy combines investment management with life insurance benefits within a single legal structure.

PPLI is commonly used to:

• Support long-term wealth preservation.
• Enhance estate and succession planning.
• Consolidate investment management.
• Facilitate cross-border wealth planning.
• Improve privacy and asset administration.
• Provide a tax-efficient ownership framework where permitted by the applicable laws.

Because PPLI products are jurisdiction-specific and subject to regulatory and tax considerations, they should only be implemented following professional legal, tax, and financial advice.

What Is Charitable Intention Insurance?

Charitable Intention Insurance is a wealth planning strategy in which life insurance proceeds are designated to support charitable causes or philanthropic organisations upon the policyholder’s death.

Rather than reducing assets available during the policyholder’s lifetime, the insurance benefit creates a dedicated source of funding for charitable objectives while allowing the individual or family to continue preserving other assets for beneficiaries. It is often incorporated into broader legacy and philanthropy planning for families seeking to create a lasting social impact.

How Life Insurance Supports Estate Planning in Nigeria

Life insurance plays a unique role in estate planning because it provides immediate financial support when families need it most.

Subject to the terms of the policy and the applicable legal framework, where a valid beneficiary has been nominated under a life insurance policy, the insurance proceeds are generally payable directly to the named beneficiary rather than forming part of the deceased’s estate available for distribution under probate. This means beneficiaries may receive the insurance proceeds without waiting for the completion of the probate process, providing immediate liquidity to meet living expenses, settle obligations, support dependants, or maintain family businesses.

This feature can be particularly valuable where other estate assets such as real estate or business interests may remain inaccessible until the Grant of Probate or Letters of Administration has been obtained.

As with all estate planning arrangements, beneficiary nominations should be reviewed regularly to ensure they remain consistent with the policyholder’s wishes and overall succession plan.

Why Insurance Matters

When integrated into a comprehensive wealth plan, insurance can help families:

• Create immediate liquidity for beneficiaries.
• Protect businesses against the loss of key individuals.
• Preserve family assets by reducing the need for forced sales.
• Support business succession and shareholder continuity.
• Fund philanthropic and legacy objectives.
• Complement Wills, trusts, and other estate planning structures.
• Strengthen long-term wealth preservation strategies.

Why Clients Work With Us

Our insurance advisory services are distinguished by the way they integrate insurance into broader wealth and fiduciary planning.

• Integrated Estate Planning – We align insurance strategies with Wills, trusts, succession planning, family governance, and wealth preservation objectives rather than treating insurance as a standalone product.
• Independent, Client-Centred Advice – We assess each client’s objectives and coordinate with licensed insurance professionals, legal advisers, tax advisers, and investment managers to recommend appropriate solutions.
• Multi-Disciplinary Coordination – Our work regularly involves collaboration across estate planning, probate, family business governance, philanthropy, corporate administration, and cross-border wealth planning to ensure insurance complements every aspect of a client’s legacy strategy.
• Long-Term Review – We encourage periodic reviews so that insurance arrangements continue to reflect changes in family circumstances, business interests, wealth levels, and applicable legal or tax developments.