What happens when you try to game the system

Discussion in 'Wall St. News' started by stock777, Sep 25, 2011.

  1. Lucrum


    You left out the part where you're calling everyone else on ET but you an idiot.
  2. i c a miscreant i have on lifetime ignore has responded.
  3. . :D .
  4. It's a crazy bet. Kinda morbid. But I have a few clients that did invest in a Pool of "Insurance" policies such as the ones mention.

    I have never, in my Private Equity Years (Started in 05) have ever sold or even thought about getting clients into such a "Bet".

    But it was interesting to hear the actual logic behind the investment.

    However, I'll stick to Oil Wells, Shipping Lines and Global Infrastructure plays.
  5. Let's say you have a $1m policy, cash value $200k (just throwing some numbers out there). Your reasons for buying the policy are moot. No one needs the money. Spouse is dead.

    Sell your policy to a hedge fund for $500k, they collect the $1m when you die. you have a $300k net gain.

    The insurance co has a problem with that? Let them buy back the policy for $500k.

    I suppose you can die with the $1m payout and give it away but what's the point of paying the premium?
  6. Reminds me of the Viaticals biz of a few years ago where HIV sufferers could get some handy cash with which to buy medications (probably mostly Morphine) and pay the rent whilst they died.
    Interesting court precedent.