Tech billionaire buys $201 million insurance policy
The identity of the person who made the record-setting life insurance purchase hasn't been released.
This post comes from Robert Frank at partner site CNBC.
A mystery tech billionaire has just purchased the most valuable life insurance policy ever. It's worth $201 million.
The policy was sold in Santa Barbara, Calif., by SG, a global advisory company specializing in complex financial solutions for wealthy clients.
According to Guinness World Records, the $201 million policy beats the previous record for a life insurance policy -- a $100 million policy for an unnamed American entertainer.
SG won't disclose the buyer's name. The company said the single policyholder is a well-known billionaire living in Silicon Valley who is involved in the tech industry, and $201 million would be paid out upon the buyer's death.
Dovi Frances, SG's president and founder, said no single insurance company holds the $201 million risk. He said the policy is split between 19 different companies and none hold "more than $20 million or so" of risk.
So why would someone buy such a big policy? Mainly for trust and estate planning reasons. By wrapping or pairing insurance products with trusts, insurance products can become an efficient way to protect assets from estate and other taxes. These tax-efficient insurance products have become increasingly popular with the wealthy as they seek to minimize their tax bills.
Frances said the policies have become especially popular in high-tax states like California.
"It's all about trust and estate planning," Frances said. "Having a life insurance policy like this can protect significant assets."
When SG began in 2010, it solicited new business with a direct mail campaign, which the billionaire answered and subsequently became a client.
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""Only in America could the rich people - who pay 86% of all income taxes - be accused of not paying their "fair share" by people who don't pay any income taxes at all.""
The communist and socialist are brainwashing the feeble minded American public. You want what the rich have then work for it. Equality is not a hand out. It's getting off your ****, learning and working. The only equality government should guarantee is the opportunity to participate and succeed. It's there, study, get off your **** and get it. Libraries are free.
Minorities have had equal rights for decades, but they have a warped sense of equality. Equality means being treated the same. Equality means being given the same opportunity. Equality is not being given special incentive, special privilege, or special consideration.
Taxes on wages (in any form – flat or progressive) are the greatest evil of our American Republic. When government is free to steal from you, there are no limits to waste and abuse in government. If a person chooses to work extra hours or two jobs in order to better provide for themselves or their family, they should not be penalized, but that is what happens. The more you make by working harder and longer, the more money is stolen from you, and given to those who spend their lives living off the hard work of others.
The revenue the government needs to provide legitimate constitutional services should be obtained primarily from a national sales tax instead of a tax on wages. All would pay based on consumption, the more you spend the more you pay. The more luxury you surround yourself with, the more you pay. Your choice. A national sales tax system would capture money spent by criminals and by illegal aliens who currently pay near zero in taxes. There would of course need to be exemptions: Cars (already have a federal excise tax) Primary Residence/Rental Properties (vacation homes would be subject to tax/rental profit would be taxed) Fresh Food (Preprocessed foods and prepared meals would be taxed – only fresh/fresh frozen/canned goods would be exempt) Insurance Premiums, Health Care & Certified Education.
Adding another layer of tax to a business would not be fair. Businesses would need to be compensated by keeping a portion of the tax to cover the expense of collection and reporting. A percentage of .20 to .05 would be fair.
The Truth about Percent versus DollarsEveryone wants the rich ($250,000 is not rich) to pay a higher percentage of their income in taxes because they don’t think the rich pay enough. Well, how much is enough? If someone is paying hundreds of thousands if not millions of dollars in taxes already, why should they pay more? So what if it’s only 10, 12, or even 5 percent of their income. Why should someone who works harder and sacrifices more, pay more? It’s wrong, it’s unfair. Those paying millions are supporting those paying only a few hundred dollars. If that’s 20% of your income, maybe you just need to work harder? The rest of us are tired of supporting you. Would you rather have 10% of $100,000 or 5% of $250,000?
Nice to know a man who poops money is really careful about the thought he puts into getting an insurance agent or financial advisor . . . seriously . . . I have the REAL Brooklyn Bridge in my backyard for sale--I am going to list it in the PennySaver . . . but if you just respond now . . . well . . . you know the rest.
More rackets for the wealthy while the American People are shoved FARTHER & FARTHER into POVERTY by the corrupt Republican corporate MONARCHY !
These millionaires & billionaires MUST BE MADE TO PAY THEIR FAIR SHARE OF TAXES of which they are NOT DOING RIGHT NOW! These HUGE TAX BILLS ARE NEEDED TO SUPPLANT the ever failing JOB MARKET because they have sent the AMerican People's VERY OWN COUNTRY'S WEALTH OVERSEAS for more of their OUT OF CONTROL CAPITALISTIC GREED, otherwise known as "INTERNATIONAL MARKETING" that has caused a TREMENDOUS DROP IN JOBS & has DESTROYED the American way of life in the USA !!
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