Recent life settlement transactions reveal broad social utility

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Recent life settlement transactions reveal broad social utility

Life settlement brokerage firm says seniors are selling unwanted life policies to solve a wide range of financial challenges.

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[Lifeinsuranceman715]

Nice PR. Forgot to mention that anyone who allows the ownership of their life insurance policy to be transferred into the hands of a third party that has no insurable interest in the life of the insured will, from that point forward, have to wonder who wants them dead. And the sooner the better. A multi-million dollar incentive for murder. To paint this life settlement industry without that perspective is naive. The requirement of insurable interest at the time of the creation of a life insurance policy is for valid public policy concerns. No one argues with the rationale for those rules. For the courts to have determined that no such insurable interest must exist at the time of a transfer of ownership to a third party, is so ridiculous, it's hard to fathom how the courts could have made such a colossal error in judgment. But it is what it is. And now, we have an entire industry built around that poor legal decision over 100 years ago. Shameful, and dangerous.

 

[DHK]

A multi-million dollar incentive for murder.

I take it you've never done a life settlement quote of any kind? The payout (or any offer itself) is based on their current health status. That means that they have to "play the odds" of whether they will be profitable on that individual transaction... or not... while paying the premiums on the transferred life policy.

If they're too healthy, they won't make an offer... period.