Author
Bowtie Team
Updated on
2025-07-10
Disclaimer: This article is translated with the assistance of AI.
In Hong Kong, a bustling financial hub, 1 in 14 people is a millionaire. You might wonder, “Do the wealthy still need insurance? Don’t they have enough to handle any crisis?” Bowtie sits down with veteran insurance expert Bo to uncover the surprising reasons.
Why Wealthy People See Insurance as Key Financial Planning
The answer might surprise you. Wealthy individuals not only need insurance but often value it more than the average person. Why is that?
First, let’s get one thing straight: the biggest difference between the wealthy and the rest of us isn’t just the numbers in their bank accounts. It’s how they view and use money. Most people see money as a means for daily expenses or the occasional splurge. The wealthy, however, treat money as a financial planning tool to create more value and opportunities.
Take this example: imagine two people each receive an extra HK$1 million. The average person might think about spending it—maybe on a new car or a luxury vacation. A wealthy person, on the other hand, is more likely to consider how to grow that money, perhaps by investing in a promising business venture or acquiring assets for long-term returns.
With this mindset, insurance becomes a crucial part of their financial strategy. It acts like a financial safety net, allowing them to take bolder investment risks, knowing they’re covered if the unexpected happens.
Risks the Wealthy Face: Wealth Transfer & Medical Costs
First up is wealth transfer. For the wealthy, building a successful business empire takes years of hard work. But if they pass away unexpectedly, their family might need to sell off assets to cover hefty estate taxes. This is where a well-designed life insurance policy comes in handy. It can function like a trust, helping the family manage inheritance matters smoothly.
Then there’s medical expenses. You might wonder, “Do the wealthy really worry about medical bills?” Sure, they can afford to pay out of pocket, but a smarter risk management approach is to transfer that burden to an insurance provider. This keeps their financial planning stable. By closing the door on potential losses, they won’t need to dip into personal funds for medical emergencies.
Side Note: Key Person Insurance
For entrepreneurs, key person insurance is often a game-changer. Imagine if a core technical expert or vital business partner in your company suddenly passes away. The impact on operations could be devastating. A key person insurance policy provides a financial buffer to help the company weather the storm. Take the late Steve Jobs, for instance. While he kept personal details private, reports suggest Apple secured a substantial key person insurance policy for him.
In the entertainment world, celebrities also prioritize insurance. American superstar Mariah Carey reportedly insured her legs for a staggering US$1 billion. While that figure sounds over-the-top, it highlights how seriously these icons take their career risks.
In short, for the wealthy, insurance isn’t just protection—it’s a sign of smart planning. So, in this digital age, how can they access such coverage more conveniently? That’s where the perks of online self-service insurance come into play.
For wealthy individuals who like to stay in control, online insurance offers a fresh experience. It makes the entire process more transparent and efficient while giving greater flexibility and autonomy. You can compare different insurance products anytime, anywhere, and tailor a plan to fit your needs. This free, flexible, and transparent model perfectly suits the demands of today’s savvy financial planners.
After all, when it comes to managing wealth, staying in the driver’s seat is always the wise choice.
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