Subscribe

World's biggest life insurance policy purchased by Silicon Valley mogul

Guinness Book of World Record officials say the $201 million life insurance policy is more than double the previous record set in 1990.

An unnamed Silicon Valley billionaire has purchased the world's most valuable life insurance policy.

The San Jose Mercury News reported Saturday that Guinness Book of World Record officials say the $201 million life insurance policy is more than double the previous record set in 1990 by an unidentified "entertainment industry figure."

A Southern California financial services company who helped put the deal together declined to identify the buyer for safety reasons.

"We don't want hit men running around Palo Alto trying to find him — or members of his own estate," quipped Dovi Frances of the Santa Barbara-based SG LLC financial services company.

Frances said that the life insurance policy is actually two dozen policies underwritten by 19 different insurers. That's because no one company could afford to pay the policies' benefactors when the billionaire died.

Frances didn't disclose the annual cost to the billionaire for the policy, but did say it was in the single millions of dollars. He said Guinness officials spent six months investigating the policy before declaring it the world record.

Several billionaires have connections to Frances' firm, including Google Chairman Eric Schmidt and Palantir Technologies co-founder Joe Lonsdale. When asked if  the buyer was Russian billionaire Yuri Milner, Frances declined to discuss identity of the policyholder.

A spokeswoman for billionaire Elon Musk, the man behind PayPal, Tesla Motors and other high-flying startups, declined to say whether he was the mystery buyer.

Frances wouldn't disclose the billionaire's age. Frances said the billionaire purchased the policy to help his heirs avoid paying a 45 percent inheritance tax.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share this story:
 
 
Make a Difference
Inspired? Here are some ways to make a difference on this issue.
FREE Newsletters
Get the Monitor stories you care about delivered to your inbox.
 

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK