Billionaire Sets Record with World’s Largest Insurance Policy

We don’t know his name. We just know that he’s an American Internet billionaire that shattered the world record for the world’s largest life insurance policy. Media sources are conflicted, with some reporting the policy to be $200 million and others reporting $201 million; but hey, what’s a million or two when dealing with those kinds of numbers? Just what does a billionaire need with that kind of policy anyway? Wouldn’t he have more than enough cash lying around to pay for a funeral and to split the rest among his family members? I bet the loose change in his couch would pay off my mortgage!

Turns out there are many reasons for a policy of this size.

1. The money is essentially a bounty, as now everyone that stands to profit has ample motive to plot his demise. Since they were all eyeing his bank account while he was alive, he decided to have fun with it and turn his life into a Clue-style reality show until he meets his unlucky demise. Viewers can call in to vote for their favourite villain. I say it’s the heir with a pipe wrench in the dining room.

2. When asked to put a value on his life, it turns out he has great self esteem. Really, really great self esteem.

3. He’s planning a really lavish funeral that kicks off with a Gatsby-style party and closes with his ashes being jettisoned into space on one of Richard Bronson’s experimental space crafts. Party favours for all the guests include cases of Cristal, limited-edition Rolex watches, bespoke suits from Armani for the men, and a private consultation and dress fitting with Donatella Versace for the ladies. Rhianna, Eminem, and Adele will perform. The policy’s death benefit will cover the funeral costs.

Pictured Typical Billionaire Funeral
Pictured Typical Billionaire Funeral
photo credit: Great Gatbsy movie still

Obviously none of the above three points are true. The truth is much simpler and extremely practical. The whole/universal life policy will pay the estate’s taxes after the policy holder passes on.

Once our mystery man passes, his estate is going to owe Uncle Sam big time. To prevent his estate from being portioned off to cover the costs and to save money in saving up for the taxes, he opted to buy a (huge) life insurance policy. It’s simple — and simply brilliant.

You see, insurance works for everyone, and there are so many practical uses for it. Apart from providing cash when it is needed most, insurance can be used for tax purposes, to generate cash savings that can be accessed for a rainy day, to secure a loan (such as Manulife’s Corporate Insured Retirement Program®), and so much more.

This purchase does not prove that the rich and famous are nothing like us and that they are eccentric while making head-scratching purchases. Okay, maybe they are sometimes, but this case proves that insurance has many uses that everyone — rich or not — can use to their advantage.

Many people think insurance is a scam, and yes, there are some unscrupulous agents out there (none of whom work at LSM!) but the opposite is true. Insurance exists to make your life easier. Yes, it can hurt to see those premiums come out of your bank account each month, but when disaster strikes and you need a huge amount of cash in a hurry, insurance has your back. Besides, if you speak with the right agent (ahem… LSM!), they can customize a policy based on your needs and budget so you don’t pay a cent more than you have to but still get the coverage you need. After all, we are not billionaires, but just like our mystery man, we all need insurance.

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