I can imagine people being furious if someday they would no longer find a market for their life policies. Now the problem is that there is a market?! If commies would just make their mind up with some ‘problem’ and stick with it, we’d all be spared much in blood pressure terms.
Here’s a couple:
There’s probably much more out there. Unfortunately, I think this is only the beginning. Most media are keeping it pretty quiet.
Probably just patents…
Reminds a bit of mortgages. Again you had a financial products being sold, bundled and sliced so many times in the end you did not know who held final title to a house, not to mention downright frauds, for example creating “subprime” mortgages out of thin air simply because there weren’t enough “subprime” lenders to go around.
If you take a look at the WSJ article you’ll see that the same, let’s say, careless approach seems to be used by Life Partners which regulalrly underestimates life expectancy, resulting in the client having to pay premiums each extra year, besides Life Partners’ hefty fees. You will also see that instead of having a pool of physicians and experts in statistics to come up with lifetime estimates they rely on a single expert, an oncologist in Nevada: he may be an authority on cancer but what about, say, people who are elderly but still in good health? He also works alone and has to review between 100 and 200 cases each week, besides his normal medical practice. He candidly admitted he simply has no time to check the accuracy of his work for Life Partners during judicial procedures involving Life Partners in the State of Colorado.Life Partners settled the case by agrreing to repurchase policies from Colorado State residents.
Yet the firm makes a nice return and the owner seems to be doing quite well. Hmmm… then we wonder hy the financial sector is such a mess.
This is genius. But ultimately this is the same thing you can do in any other insurance market too.
If you find it morbid to profit from someone’s death, remember that there are people paid to bury the dead - and the latter sure had to die.
As more investors buy these bonds, it will squeeze the profit margins of these sorts of trades to the favor of those receiving the cash.
This really isn’t a bad thing, as long as the company doesn’t start killing people to collect.
It is good for the person selling their policy because they get to enjoy it in the present. It is a simple time value of money thing, and the yields will improve for the recipients as more investors participate.
Another leftist put in his place. Awesome.
Evidently, somebody is predicting an upsurge in the death toll, at least among seniors. “Reverse mortgages”, where people get income from their home in exchange for turning it over to the lending institution upon their death, have been all the rage for years. But this is a new idea. I think somebody sees an angle.
Fantastic