Interesting Investment Strategy

Basically, investors are paying people towards the end of their lives to buy their life insurance policies. You give them some cash upfront and get the life insurance payment when they die. I have to keep laughing to keep from crying. The capitalist in me doesn’t have a problem with it, but I can’t jump the mental hurtle and cheer for somebody to die so I can make bank.

:shocked Lol… nice share Paul. I wonder what kind of discounts they’re buying these life insurance policies at… must be pretty large if they’re taking a margin and selling them to investors who will want a decent return. Could be risky though once you figure TVM… you could expect someone to die in 5 years when really it takes 15, then the PV of that future return is extremely low. I guess the fact that they’re bundling them and selling them as securities helps mitigate the risk though, since it (in theory) should even out.

I’ve never heard of Life Partners before, but does anyone see a potential for Life Partners and their end customer, the investors, to influence drug research, specifically regarding HIV/AIDS?

Something like %97 of Life Insurance policies never pay off…Insurance companies are very smart who they insure and who they dont and Life Insurance policies are their cashcow…They look for no brainer scenarios…They know statistically how long a person can live with a certain illness etc…You always hear about the perfectly healthy guy paying $10 a month for $100,000 in coverage but you dont hear about the guy who has had triple bypass surgery,is obese,smoking cigs paying being denied…Even if this is true and it happens its blood money at it worst…Even if the person agrees and my guess is there is some kind of legal loophole that will protect the insurance company from situations like this…

The legal, moral, and financial issues with this investment tactic are almost overwhelming. I don’t know how you could do this without feeling like a vulture…a vulture with a big pay off down the road.

I remember some morning radio show a few years back being part of some celebrity death pool. Kinda along the same lines as this I guess…

There has to be an insurable interest. I’m not sure how they get around this.

this has been going on for a long time, and I understand the moral questions about it, but consider many of the people are broke. If they can “sell” there life insurance they can get some money to make there remaining time more enjoyable.

Some of these people would actually lose there insurance if hey couldn’t ‘sell’ it, because they can’t afford to pay the premiums,this way they get to have access to cash.

Again, I see both sides of this, I have never invested in these, but know a couple of people that have,

Something like %97 of Life Insurance policies never pay off...Insurance companies are very smart who they insure and who they dont and Life Insurance policies are their cashcow...

Insurance companies are vicious…plain and simple.

Why do you think Buffett snatched up Geico at an early age?