An important question when it comes to considering life insurance is whether you really need it and, if so, how much you would need. To determine the need we look at existing obligations, ongoing cost of living, and future expenses. Being rich means that you have money. So you will have sufficient to cover all three. In short: You would expect that the rich do not require life insurance. Ordinary people worry about debts, mortgages, retirement, and the ability of their dependents to generate income after they die. Rich people don’t.
Many high-net-worth individuals (HNWIs) nonetheless opt for life insurance. Why would they? That is precisely the question we address in this chapter.
In our experience we have come across quite a number of reasons for establishing a life insurance policy.
A key driver of considering life insurance is the fact that in many jurisdictions it comes with attractive tax benefits. For example, in some jurisdictions the money spent on life insurance ...