What kind of health insurance do millionaires have?
In America, health insurance is an untaxed benefit. As a result of World War II regulations, it is not subject to payroll taxes. But that does not mean it is free, either. Health insurance plans with high deductibles are generally discouraged from using those with lower incomes. While high-net-worth people don't live paycheck-to-paycheck, they still have life insurance and other health benefits.
Umbrella insurance
There is a reason why millionaires should consider purchasing an umbrella insurance policy. Even the richest individuals can face liability claims, and such lawsuits could wipe out years of savings and investment. Millionaires have the most to lose by not protecting their wealth. In addition to protecting their assets, umbrella insurance is relatively inexpensive. A policy will protect a policyholder's finances in the event of a lawsuit. To learn more, read on!
Medicare
In America, millionaires and billionaires pay very different health insurance and medicine rates than 99.9% of the population. Whether they have their own health insurance companies or have financed health care themselves through donations, billionaires are often on different health plans than others. Typically, they have a bronze, silver, or gold level health insurance plan. However, the top tier is prohibitively expensive and not advisable for everyone.
Medicaid
Having a high income can mean a significant increase in your medical expenses. Medicaid eligibility is determined based on your Modified Adjusted Gross Income (MAGI). However, many people do not take a salary but instead structure their income by making accounting manoeuvres and withdrawing money from qualified accounts, such as 401ks and traditional IRAs. This can help you qualify for Medicaid. But there are still a few factors to consider.
Life insurance
Many wealthy people wonder why they need life insurance. After all, they would have many assets to pay for their final expenses and provide for their heirs. But they also need life insurance for many reasons, including liquidity, increased financial health, reduced liabilities, and their tax profile. These reasons may make purchasing life insurance for millionaires an excellent choice.
Self-insurance
Self-insurance for millionaires is not as expensive as you might think. A healthy young millionaire can rationally decide not to purchase insurance or even seek medical treatment, thereby effectively self-insuring himself. Even if he chooses not to see a specialist, he can still set aside a significant portion of his income to pay for health insurance. However, it is important to note that a self-insured millionaire is not necessarily more secure than the average American.
Liability insurance
Because there will be a record number of millionaires in the U.S. by 2020, it makes sense to have proper liability insurance coverage. While everyone needs proper insurance coverage, the rich are especially important to have full coverage. After all, they usually have many assets to protect. While umbrella liability insurance is common among millionaires, it is also a great option for individuals who do not have a large bank account.
