Dovi Frances of SG LLC, the lucky Southern California-based financial services adviser who arranged the policy, declined to disclose his client’s identity but did say that the annual premiums for the policy will be “in the low single-digit millions.”
The life policy, now verified by Guinness World Records officials as the largest in history, was underwritten by 19 different insurance companies, each taking responsibility for less than $20 million — any more would cause the insurer to “go into bankruptcy if the insurance policy is called,” said Frances.
Perhaps even more interesting to brokers is the method Frances used to procure his deep-pocketed client: direct mail.
Direct mailing campaigns have drawn their share of skeptics in recent years, particularly among the insurance community, says Ontario broker Glenn Cooke
of LifeInsuranceCanada.com. However, the impressive success in California may mean Canadian life insurance brokers will want to rethink their strategy. (continued.)
Headlines were made last week when it was revealed that an anonymous Silicon Valley tech company billionaire in California had taken out the largest life insurance policy ever with a death benefit of US $201 million, more than double the value of the previous record-holding policy.