Why Do Wealthy People Buy Life Insurance? 
Good question ! And there are lots of god reasons why wealthy people buy life insurance . And not just any life insurance , but typically WHole Life insurance . As mentioned above here wealthy people are usually concerned with estate preservation and estates worth over $ 5.6 million incur huge taxation at the death of the owner of the estate . So one reason is to pay the death tax on the estate . Also as mentioned above whole life insurance grows cash value tax-free or at least tax-deferred . And the growth is guaranteed , and with Mutual insurance companies dividends are also paid . And buying whole life insurance is like buying money at a discount with the possibility of considerable wealth growth . And of course the death benefit is paid to the beneficiary tax-free ! 