Why rich people buy insurance?

Insurance is a financial tool. Rich people tend to get rich, by using financial tools. 

• They don't really BUY life insurance for income replacement, they make use of life insurance as "Wealth Transfer" tools.

• They'd rather pay a fixed $300 a month for their health insurance, than risk a possible five to seven figure health condition.

• That's what money management is all about. They don't need it, they just want it.

Read this article here, from WSJ.