Why Do the Rich Buy Life Insurance?

Life insurance is a very versatile product, but we don’t often think about it as a necessary element in the portfolios of the rich and famous. A Silicon Valley billionaire has recently taken out $201 million in life insurance. The Guinness World Records, which announced the policy, said it is the largest life insurance policy ever issued.

This is an extremely complicated policy that is underwritten by 19 different insurance companies because if a single lender took the whole policy they would go into bankruptcy if the insurance policy is called. The previous record for a life insurance policy was a $100 million policy for an unnamed American entertainer.

Why do the rich buy life insurance?

  • Estate Creation
  • Estate Conservation
  • Liquidity
  • Wealth Transfer
  • Income Replacement

Considering the volatility of the financial landscape there has been an increase in interest in insurance policies for their steady returns and predictable growth. Life insurance gives you guaranteed growth without the risk. These are important factors to consider, even if you are not a multimillionaire or billionaire.

Should you be seriously considering life insurance? Absolutely; and not only for you but for your children as well. You may not be aware of the great benefits of life insurance for the entire family. Insurance for Children is a company that empowers parents and grandparents to create a solid financial foundation for their children and grandchildren. Our variety of customized insurance products has been used by Canadian parents to save for their children’s futures for over 100 years because they are secure, stable and safe, long term investments. Contact us today to find out how life insurance can benefit your entire family.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $250 per month

Age Accumulated Cash Value Life Insurance Value
20 $82,568 (Education) $612,728
35 $177,953 (House) $1,115,297
45 $303,299 (Security) $1,115,297
65 $834,276 (Retirement) $1,666,824

Sample illustration is based on a monthly contribution of $8.32 a day/$250 a month for twenty years, starting when the child is less than 1 years old. Cash and life insurance values are based on the current dividend interest rate of 6% from a Canadian life insurance company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

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Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

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*illustrations are reflective of the annual premium amount

To learn more how Child Plan will provide your child with the funds for their future education and financial security for life, book a virtual meeting with a Child Plan Advisor.

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