$201 Million Life Insurance Policy Breaks Guinness World Records
A Silicon Valley billionaire has broken the world record for the highest valueÂ life insuranceÂ policyÂ by more than double, according to a recent announcement from theÂ Guinness World RecordsÂ News Service. While the billionaireâ€™s identity remains a secret, he is said to be a well-known figure in the technology industry.
Complexity of a Large Life Insurance Policy
This kind of life insurance is exceptionally complex to write, saidÂ David Donchey, CLU of LWT AgencyÂ in a June 2010 article forÂ California Broker.Â
“Getting an insurance carrier to make a competitive offer on a large life insurance policy application is not something you can figure out as you go along,” Donchey said. “These cases have unique characteristics and they require a comprehensive understanding of how to navigate a case from beginning to end.”
The broker on the mystery policy, Dovi Frances seems to concur. He told Guinness World Records, “Bringing this transaction together required negotiating concurrently with over two dozen insurance companies and complex underwriting requests from each insurance company.”
Guinness World Records Reaches New Level
Guinness World Records notes that the previous record for the highest value life insurance policy was $100 million. That policy was sold in 1990 by UK broker Peter Rosengard for an entertainment industry leader.
The name of the insurance company or companies in the new record-breaking transaction have not been revealed. In a large life insurance policy such as this, companies usually decline such coverage unless they can locate adequate reinsurance for protection in case the benefits ever have to be paid. Likewise, a statement has not been released as to what life insurance rates the billionaire paid to secure this coverage.