Do multi-millionaires need health insurance?

Question

I would assume they could afford any hospital bills, no matter what illness, so do they even bother getting health insurance?

Answer 1

your question is a good one.

if i were a young aspiring ins broker i would create a self funded insurance co. for million and up people only.

Answer 2

Yes.

Health insurance is a financial instrument. When you buy health insurance you are paying a company to assume a risk that you are not willing to assume yourself. For a couple of hundred dollars a month you can lay off a risk of millions. It is a wise investment.

Don

http://mtnhealthinsurance.com

Answer 3

Most millionaires keep their money invested - not laying around dozens of bank accounts as disposable cash.  You also can't predict what kind of health problems you may encounter - some treatments can be quite expensive, especially if it's ongoing for months or years.

Answer 4

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Answer 5

Most wealthy people keep health insurance, but for catastrophic losses only.  They use higher deductibles and pay perhaps the first $25,000 or so of any annual healthcare costs.  However, if a major illness strikes which might cost them a half million dollars, they generally have coverage.

Answer 6

Millionaires become millionaires by being prudent....they don't become less prudent once they arrive there (unless you're talking about some that achieved it quickly - lottery, sports, acting, etc...)

Considering you can get $25,000,000 of coverage for about $80/month (40-ish year old) it wold not be prudent to go without.  Plus it's not only a matter of affording it is also a matter of getting the care negotiated to more affordable rates too.

I had a client in my office on medicines that run $15,000.  That'd put a dent in your wallet no matter how fat it was.  

Hope that answers your question.

Answer 7

They may not need it but most have it. Most millionaires did not get their money by being stupid; they know the value of insurance. They usually get plans that don't cover the minor things like doctor visits because they don't mind paying the $75 - $100 the average doctor visit costs if they can save $50 - $100 in premium each month. Nearly every client that I have with money have HSA qualified plans or plans that are similar.

Answer 8

One serious illness or premature baby would wipe that out pretty quickly.

Insurance is a financial tool.  Smart people, use tools.  Multi-millionaires are particulary adept at using tools.  Bet your bottom dollar, they have health insurance. AND car insurance - it's a dumb money move to post that $10,000 bond and NOT carry car insurance.  

Do the math, and you'll see why.