Call it wealth insurance!


The very rich are getting very richer. I didn’t think you needed a chart to show you that. But just in case, I linked to one. Here’s the big news for us: They need life insurance. Dumpster loads of it, in fact.

Of course, we have the estate tax to “thank” for that. April is a really a bad month to show gratitude for a tax, but it does mean that ultra-high-net-worth people (aka beyond-unbelievably rich) need to protect their estates with life insurance. That is if they care about their legacy. This is when sports teams and arenas are sold at quick-sale prices. On a smaller scale, families that own restaurant chains, for example, find themselves food-rich but cash-poor. After all, many of the uber-rich accumulated their wealth on a business they built themselves.

When the person who built the company (but not a solid estate plan) dies, the family is usually left scrambling to pick up the pieces. Or more accurately, having to sell the pieces scattered through the probate process. Life insurance to the rescue!

In Linda Koco’s deconstruction of the record-setting $201 million life insurance policy, she describes how vast yet intricate the process is to build such a case. It takes the right kind of finessing. And Linda just so happened to have written about that, too, in this month’s InsuranceNewsNet Magazine.

Those are recommended reading if you’re thinking about the sales stratosphere. The air is thin up there where mistakes are costly. OK, I’m going to do us both a favor by bailing out of this metaphor and letting you read other stuff on our site. Enjoy!


Steven A. Morelli is editor-in-chief for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers, magazines and insurance periodicals. Connect with Steve →

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