UNITED STATES

Silicon Valley billionaire buys record US$201 million life insurance policy

PUBLISHED : Monday, 17 March, 2014, 5:31am
UPDATED : Monday, 17 March, 2014, 5:42am
AP

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An unnamed Silicon Valley billionaire has purchased the world's most valuable life insurance policy, worth US$201 million.

The man who cobbled the deal together said on Saturday that it had taken seven months and 19 insurance companies to put together a deal that surpasses the US$100 million policy sold to Hollywood mogul David Geffen in 1990.

"No one company can afford to take a US$201 million hit," said Dovi Frances, the financial adviser who represents who he calls a "well-known billionaire".

The Guinness Book of World Records announced the surpassing of Geffen's record on Thursday. Guinness officials spent about three months reviewing records, Frances said.

Guinness credits Frances with the record for selling the policy, surpassing British life insurance salesman Peter Rosengard, who helped put together Geffen's policy.

Frances is president of advisory firm SG. The firm has represented the billionaire since he responded to a direct mail solicitation in 2010.

Frances said the billionaire wanted to remain anonymous for two reasons: privacy and keeping the news from his benefactors. "He wants his next of kin to keep working hard."