I know that not all people need life insurance, for example those that do not have any dependants (those that depend on the person's income). Now how about rich people? Suppose I have $10 millions, good owned property, stocks and all. I have a wife + child. Should I be getting life insurance? I know that when I died, my wife and child will be well off with that money, without any compensation from life insurance.

It depends on your needs, your goals, and what you want to provide for those you leave behind.

Some wealthy people purchase life insurance to provide funds for any number of reasons:

1. To pay for estate taxes.
2. To donate money to their favorite charities.
3. In order to provide a larger estate for their heirs.
4. To pay off any outstanding debts.
5. To pay off their mortgages.
6. To leave donations to their alma mater.
7. To provide additional funds to off-set any annual increase in cost-of-living, so their spouse can continue their current lifestyle. As we know, each year, the price of goods usually increases.

These are some of the reasons rich people may want to purchase life insurance. However, they don't necessarily need life insurance. That's up to the individual, and their financial goals.

Look there lies a small line of difference between the well-to-do and the rich,and the rich and the wealthy.People who have enough finances will definitely look to invest on properties or other financial schemes that will provide them with high dividends within a short span of time.What really matters here is the mentality of the customer.If he wants to be safe and secured no matter if he is rich,poor or wealthy a life insurancy policy is the best thing that he can have for cover.

Rich people do it for estate tax purposes. Those not fortunate enough to be wildly rich usually buy to replace income that will be lost.

Whole life insurance policy is a great tax shelter vehicle. When you invest into life insurance, you may get the following benefits:

1) Tax free growth of investment
2) Tax free loans from the policy
3) Tax free contributions to the policy
4) Cash in the policy fully protected from creditors in the event of liquidation
5) Provides great conservative rate of return in most cases higher then Money market instruments (rates of return may vary depending whether its a stock or mutual company)

If an individual is high net worth, he/she may choose to contribute a lump sump into the life insurance policy and place it in the irrevocable trust, protecting the monies in case of law suites, divorces and such...

Life insurance primarily is for death benefit purposes, but it also can be viewed as one of the best investment vehicles.

You want to know which people are happy right now in this topsy turvy market? Those who have older Whole Life policies, that's who. They are receiving about 5% (varies) interest on their money, on a tax deferred basis.

Hi
It totally depends upon you that what you want to give your family after you. They will face so many problem when you will be not there. Instead of insurance I would like to advice to invest money in real estate. It will give regular income to your family. Hope my suggestion will help you.