Sometimes, there are limits to even what a billionaire can buy.
For example, let’s look at life insurance, often the most efficient tool ultra-wealthy individuals can use to offset estate tax, oftentimes providing the liquidity needed to avoid a fire sale of family assets, including business interests, real estate and artwork. Advisors typically structure policies to offset as much of the estate tax burden as legally possible.
Life insurance is fundamentally cost effective and billionaires usually want as much as possible. But not all ultra-wealthy individuals can get as much as they want—billionaires whose wealth is highly liquid, for example. Nevertheless, individuals at the pinnacle of the financial hierarchy usually have access to about $400 million in life insurance. This requires advisors to be strategic in the acquisition process.