What happens when you try to game the system

and have to wait years to collect. you lose

http://online.wsj.com/article/SB100...49782.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

You left out the part where you're calling everyone else on ET but you an idiot.

 

i c a miscreant i have on lifetime ignore has responded.

 

. .

 

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.

 

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?

 

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.