An unnamed Silicon Valley billionaire has purchased the world’s most valuable life insurance policy.
The man who cobbled the deal together said on Saturday that it took seven months and 19 insurance companies to put together a deal that surpasses a $100 million (R1.1 billion at current rates) policy sold to Hollywood mogul David Geffen in 1990.
“Not one company can afford to take a $201m hit,” said Dovi Frances, the financial adviser who represents a man he called “a well-known billionaire”.
The Guinness Book of World Records announced the surpassing of Geffen’s record on Thursday. Guinness officials spent about three months reviewing records, Frances said. “It was worse than any audit you can think of.”
Guinness credits Frances with the record for selling the policy, surpassing UK insurance salesman Peter Rosengard who helped put together Geffen’s policy.
Frances is president of Santa Barbara-based SG, which has represented the billionaire since he responded to a direct mail solicitation in 2010.
He said the billionaire wanted to remain anonymous for the sake of privacy, and to keep the news from his beneficiaries. “He wants his next of kin to keep working hard.”
He said the man purchased the policy to help his heirs avoid paying a 45 percent inheritance tax on his death. – Daily Mail