5 insurance policies of the rich & famous
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Except for the occasional insurance agent, most people don’t think of insurance policies as fancy or sexy. Then again, most people aren't wildly wealthy or well-known, which is where these policies go to another level.
As in most facets of life, the super wealthy tend to have the best and fanciest, well, everything, and insurance policies are no exception. Here are five insurance policies of the rich and famous that may just leave you with insurance envy.
An undisclosed tech-industry billionaire set a Guinness World Record in 2014 for the most valuable life insurance policy ever written. The $201 million policy was sold by Dovi Frances, managing partner at SG, LLC, a Santa Barbara, California-based advisory firm.
According to Guinness World Records news service, the policy features “a combined death benefit to be paid upon the death of the single insured that more than doubles the previous record, set by Peter Rosengard from the U.K., whose record-breaking insurance sale in 1990 sold at $100 million (then £56 million) on the life of a U.S. entertainment industry figure.”
You may be wondering why a billionaire tech mogul would even want such a sizable life insurance policy. Frances told Forbes in a 2014 interview “"In California, there are state death taxes that are exceptionally high. If your properties are leveraged then those loans are called immediately and need to be paid off. So if you want to head yourself against such a risk can receive the proceeds without being exposed to taxes."
Antilia is the name of the private residence of Mukesh Ambani, chairman of Reliance Industries, in Mumbai, India. The 27-story building is considered the world’s first billion-dollar home (estimates put it at $2 billion). We don’t know if it carries the world’s most expensive homeowners insurance policy, but as the world’s most expensive home, we feel pretty comfortable with our assumption that it falls somewhere in the top 1% of policies globally.
Super yachts aren’t just expensive to build. They’re also expensive to own and maintain. For example, the average super yacht insurance policy runs nearly a quarter of a million dollars every year, according to British insurer Towergate Insurance.
To date, the most expensive super yacht in the world is Project Azzam, owned by Khalifa bin Zayed bin Sultan Al Nahyan, President of the United Arab Emirates. The 590-foot yacht cost an estimated $650 million to build. We’re glad we don’t have to worry about paying those premiums.
Rowan Atkinson, the British actor made famous by his role as Mr. Bean, is believed to have received the largest automobile accident payout in history. Back in 2011, Atkinson crashed his McLaren F1 into a hedge in Oxfordshire. His insurance company wound up paying £910,000 (roughly $1.48 million in 2011) for the repairs, making payment for what is believed to be the single-largest auto insurance claim ever.
Atkinson ended up crashing the car twice during the years he owned it, but that didn’t stop someone from wanting to buy it when the actor put it on the market in 2015 for £8 million (roughly $12 million in 2015).
One of the world’s most famous diamonds (45.52 carats) is reportedly insured for $250 million today. But when it was donated to the Smithsonian Institution by Harry Winston back in 1958, it was insured for significantly less.
When it arrived at the Smithsonian, it was wrapped in a plain brown package. Sent by registered mail, it had been insured for $1 million, which would be worth about $8.47 million in today’s dollars.
The Hope Diamond is certainly special, but it can’t compare to the Crown Jewels of the United Kingdom. Made up of many extraordinary pieces, including the The Sovereign's Sceptre with Cross (topped by Cullinan I, the largest clear cut diamond in the world at 530 carats), the collection has reportedly been valued for insurance purposes, but the amount is kept secret. There are many estimates as to the value of the Crown Jewels, many putting it somewhere between £3 billion and $5 billion.
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