The Impact of the Assisted Dying Bill: What advisers need to know

Uncovering the future of life insurance amidst ethical and legislative shifts 

As the Assisted Dying Bill gains traction in legislative circles, wealth advisers must consider its potential impact on life insurance planning, client conversations, and legacy strategies - especially for high-net-worth (HNW) individuals. This article explores how this evolving legal landscape intersects with protection planning and why it matters for your clients. 

Understanding the bill 

The assisted dying bill, also known as euthanasia or physician-assisted suicide legislation, allows terminally ill patients to end their lives under specific conditions, usually involving stringent checks and balances. The bill aims to provide dignity and autonomy to individuals suffering from unbearable pain, reducing prolonged suffering. While the ethical debate continues, wealth advisers should focus on the practical implications - particularly how this may affect life insurance policies and estate planning. 

Implications for life insurance planning? 

Traditionally, life insurance benefits are withheld in cases of suicide within a specified period after the policy's inception, generally twelve months. The legalisation of assisted dying introduces ambiguity: will insurers treat assisted deaths as valid claims? Will underwriting criteria change for terminally ill clients? These are critical questions for advisers helping clients structure long-term protection strategies. 

One of the first hurdles insurers must navigate is the redefinition of policy terms and exclusions. The life insurance industry is on the precipice of transformation; policies that may have once seemed straightforward now demand urgent re-evaluation to address the complexities of assisted dying. Will deaths resulting from physician-assisted suicide be covered? If so, under what conditions? These questions are not merely academic - they strike at the heart of compassion and justice in life insurance. Insurers must also revisit their underwriting processes, aligning them with this new, intricate legal landscape. 

Increase in premiums 

The assisted dying bill could trigger seismic shifts in premium structures. Insurers might perceive an increased risk associated with policies from terminally ill individuals, potentially leading to higher premiums or more stringent eligibility criteria. Conversely, the clarity provided by legislative guidelines and thorough medical vetting processes could stabilize premium rates over time. The industry stands at a crossroads, balancing risk management with humane care - a delicate dance that will shape its future. 

How might it affect claims? 

The claims process is set to become a labyrinth of complexity with the assisted dying bill's enactment. Insurers must build watertight mechanisms to verify compliance with the legal requirements for assisted dying, ensuring procedural safeguards were followed, and decisions were made voluntarily and without coercion. This intricate verification process could lead to delays and inflated administrative costs, adding another layer to an already complex issue. 

Moreover, the potential rise in claims could dramatically impact insurers. With assisted dying as a legally viable option, there may be a surge in policyholders choosing this route, thereby accelerating payout timelines. This surge could lead to an unanticipated frequency of claims, challenging the financial stability of insurance providers. The industry must brace itself for this while demonstrating empathy and support for those facing harrowing end-of-life decisions. 

Client conversations and Ethical considerations 

The life insurance industry will also grapple with ethical considerations surrounding the assisted dying bill. Balancing the humane aspect of providing support to terminally ill patients with the financial implications of accelerated death benefits is a complex ethical dilemma. Insurers will need to navigate these waters cautiously, ensuring their policies do not inadvertently incentivize assisted dying but offer fair and compassionate coverage. 

HNW clients often have complex needs and strong views on autonomy and dignity. The Assisted Dying Bill may prompt sensitive conversations around end-of-life choices. Advisers should be prepared to discuss how protection products - such as life cover - may respond to assisted death scenarios, and whether policy terms need to be reviewed or clarified. 

Legacy and Estate Planning 

For clients focused on legacy, the timing and certainty of life insurance payouts are crucial. If assisted dying becomes legal, insurers may require additional documentation to validate claims, potentially delaying payouts. This could affect liquidity planning, trust distributions, and intergenerational transfers. 

Wealth advisers are uniquely positioned to bridge the gap between legal, ethical, and financial considerations. By proactively addressing the implications of assisted dying, advisers can demonstrate foresight, empathy, and value - ensuring clients’ protection plans remain robust and aligned with their wishes. 

In summary 

The Assisted Dying Bill is more than a legal development - it’s a catalyst for deeper client engagement. For wealth advisers, it’s an opportunity to reframe protection not as a product, but as a pillar of holistic wealth planning. Now is the time to revisit life insurance strategies and ensure they are future-proofed for a changing world.