Why Do Wealthy People Buy Life Insurance? 
Most wealthy people are wealthy because they are smart when it comes to understanding how money works . Part of this understanding is how taxes work . In the vast majority of the wealthy portfolios you will like find life insurance . This has more to do with sheltering their money from taxation . Just last year in CA a billionaire wrote a policy so large it took 21 life insurance companies to underwrite it . The policy now stands in the Guinness Book of World records at a face amount of $ 201 billion . I assure you this person did not spend this much money on premiums , can you imagine the price , just to be in the book of world records . It was totally about the tax advantages . 