Largest Life Policy in History $201,000,000

[scagnt83]

Nice

Someone just bought the most expensive life insurance policy ever


"A mystery tech billionaire has just purchased the most valuable life insurance policy ever. It's worth $201 million.

The policy was sold by Santa Barbara, Calif.-based SG, a global advisory firm 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."

 

[DHK]

I think the $100 million policy was for Oprah.

 

[scagnt83]

I think the $100 million policy was for Oprah.

I think you are right. I somehow remember hearing speculation of that a while back.

I dont know which tech giants live in silicon valley. But I would guess it is either someone aging, or someone who just had a child....

 

[ianbroker31]

I believe WinoBlue was the Broker who sold the policy

 

[TheCaspian]

I'm friends with a portfolio manager at a financial company that manages complex life insurance policies. They just got a $100 mill shipped in to them last week

 

[Justin Bilyj]

They are going to ruin it for the rest of us...at a certain point when you have billions of dollars or hundreds of millions you shouldnt be able to buy it. I know it goes against the free market principle, but trust me when I say when our coffers go dry, they will look at this as a cash cow, and it will ruin it for everyone...

And it costs taxpayers a lot of money: About $265 billion over the next decade. Who holds these tax-free policies?
According to Federal Reserve survey data, 22% of assets accumulated tax-free in whole-life and universal-life policies were held by the wealthiest 1% of U.S. families in 2007—those with more than $8.4 million in net worth. More broadly, 55% of the assets in such policies were held by the wealthiest 10% of families. The bottom half by net worth held 6.5% of these assets. Life Insurance as Tax Dodge for the Rich : Columbia Journalism Review

 

[Norwayguy]

They are going to ruin it for the rest of us...at a certain point when you have billions of dollars or hundreds of millions you shouldnt be able to buy it. I know it goes against the free market principle, but trust me when I say when our coffers go dry, they will look at this as a cash cow, and it will ruin it for everyone...

And it costs taxpayers a lot of money: About $265 billion over the next decade. Who holds these tax-free policies?
According to Federal Reserve survey data, 22% of assets accumulated tax-free in whole-life and universal-life policies were held by the wealthiest 1% of U.S. families in 2007--those with more than $8.4 million in net worth. More broadly, 55% of the assets in such policies were held by the wealthiest 10% of families. The bottom half by net worth held 6.5% of these assets. Life Insurance as Tax Dodge for the Rich : Columbia Journalism Review

And how much is held by banks as tier 1 capital?

 

[Justin Bilyj]

And how much is held by banks as tier 1 capital?

Good question, which might even fan the flames even more when some populist rag like NYT frames the argument in such a way to say, "The Rich and Big Banks" are defrauding the taxpayers millions if not billions of dollars through this "loophole"...

 

[BNTRS]

And it costs taxpayers a lot of money: About $265 billion over the next decade.

Total BS.

First, it costs tax payers nothing that someone is able to take advantage of a tax preferred method of savings. How much does it cost us to have Roth IRA's or charitable remainder trusts? Or the tax exempt status of non-profits in general?

Further, I'm willing to bet these numbers completely ignore tax revenues from premium taxes, which after being accounted for drop this so-called "cost" down by more than half.

Sure it's awesome that people can take advantage of it. But pretending like the use of it is somehow damaging the system or that those who can place a lot of money into it are ruining life insurance is nonsense.

 

[TheCaspian]

Total BS.

First, it costs tax payers nothing that someone is able to take advantage of a tax preferred method of savings. How much does it cost us to have Roth IRA's or charitable remainder trusts? Or the tax exempt status of non-profits in general?

Further, I'm willing to bet these numbers completely ignore tax revenues from premium taxes, which after being accounted for drop this so-called "cost" down by more than half.

Sure it's awesome that people can take advantage of it. But pretending like the use of it is somehow damaging the system or that those who can place a lot of money into it are ruining life insurance is nonsense.

The attacks on tax vehicles are not bullshit.

I read an article in Salon or somewhere like that where the author was bemoaning the fact that X billion tax dollars were being lost every year....AND that's on a Roth, which is designed for the 99%

(fiscal) Liberals are dangerous to everyone, rich or poor.