An unknown billionaire has now purchased the most expensive coverage on record.
A billionaire from Silicon Valley whose name has not been released has now set a new level in the Guinness Book of World Records, for the most valuable life insurance policy that has ever been purchased.
The coverage is for $201 million and it is being provided by 19 different insurers for massive premiums.
This life insurance policy will require the mystery billionaire to have to pay millions of dollars in premiums every year. The policy itself was sold by an advisory firm in Santa Barbara, California, called SG, LLC. It is legally bound to silence about the name of the billionaire customer, but they have revealed that the individual is quite well known as a tech investor in California.
That said, this does not provide much in terms of specifics regarding the owner of the life insurance policy.
The most recent statistics that could be located for California showed that there are currently 111 billionaires living in California. Approximately one in every three of them are involved in tech of some form. San Francisco, all by itself, has about 20 billionaires living in it.
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The size of the policy makes it over twice the top previous coverage that had been purchased. The old record was set in the United Kingdom by Peter Rosengard, who purchased it to receive $100 in coverage for a figure in the American entertainment industry.
While many people are taken aback by the sheer magnitude of the policy and the amount that would have to be paid in order to maintain it every year, others are asking why a billionaire would require this type of coverage while in the ownership of such a large number of other assets. This was explained by the SG, LLC managing partner and founder, Dovi Frances, who said that the state death taxes in California are “exceptionally high”.
Frances went on to explain that life insurance can help to reduce the risk that beneficiaries would suddenly face immediately called in loans if properties are leveraged. The policy’s benefits can help to pay off those amounts without exposure to taxes.