New zero premium life insurance policy/life settlements

[STIBROKER]

Mary, don't give these people any more of your time. bah.....blah...blah... "Do the math for an investor where the client dies in the first year. That is an amazing return on his money. bah.....blah...blah... The investors are not going to make this move without understanding ALL THE RISKS. bah.....blah...blah... It is all how you look at it. bah.....blah...blah... Do the math people, this is going to far outperfom. The only possible issue with me is the senior and I do love them. bah.....blah...blah... I really recommend that those who are so convinced this is a scam; your voice has been heard, let it rest!

But who is paying the prem.....and who is the main beneficiary....a nigerian bank.....that could be a problem......it seems that you are turning old people into a marketable commodity...yea Mary don't listen to me....I have never made a dime off you and saved you some headaches on the NAA deal......

 

[Frank Stastny]

There is more than one hidden agenda in this thread!

If their lips are moving.....

 

[CHUMPS FROM OXFORD]

Pat said:

"Hello, how many 80 year olds are going to live to 100? It is for 65-85 year olds and the average lifespan for that group is 84 months. Now do the math with an investor and 100 clients. Do the math for an investor where the client dies in the first year. That is an amazing return on his money. Probably several hundred percent in fact. If it is an average of 7 years, the investor would easily profit 15, 20% plus. The investors are not going to make this move without understanding ALL THE RISKS."


BINGO!!! And the insurance companies know that and are not going to make the deal if they lose money!

WOOF! WOOF! A dog with fleas. Don't be duped! Pat gave us some of the facts, but left out (conveniently) others.

See Mel's post and it will make sense to you.

 

[somarco]

The carriers are much aware of the life settlement companies, the SOLI deal's, bonded settlements, etc. which is why they are buying up life policies as part of their portfolio. The investment returns offset the increased payout on the relatively small percentage of policies that are sold in these arrangements.

This is akin to the hand wringing that took place when AID's started to become an issue. Some carriers felt they would have to raise rates as much as 10% across the board to offset the additional payouts for AID's claims.

The reality is, AID's, HIV and the like make up such a small volume of the total portfolio, combined with new screening methods and new AID's/HIV treatment that it is a non-issue.

If suddenly this kind of thing becomes a major portion of the senior life market (highly unlikely) then the carriers will react by raising rates, scrutinizing ownership of policies as well as beneficiaries, and so forth.

Until then, the impact on the actuarial assumptions is nil.

 

[insurancechick]

But who is paying the prem.....and who is the main beneficiary....a nigerian bank.....that could be a problem......it seems that you are turning old people into a marketable commodity...yea Mary don't listen to me....I have never made a dime off you and saved you some headaches on the NAA deal......

The senior can designate whoever they want as a beneficiary. That's a key distinction many of you are missing. This isn't like the church scheme where they had to make the church a bene. It is completely up to the senior, just the same as if they purchased a $15K policy.

 

[pat77]

What issue Pat? Would you please elaborate, if you don't mind?

Just the possibility that a senior could get hurt in any way. I don't see it happening though either.

 

[pat77]

Pat said:

"Hello, how many 80 year olds are going to live to 100? It is for 65-85 year olds and the average lifespan for that group is 84 months. Now do the math with an investor and 100 clients. Do the math for an investor where the client dies in the first year. That is an amazing return on his money. Probably several hundred percent in fact. If it is an average of 7 years, the investor would easily profit 15, 20% plus. The investors are not going to make this move without understanding ALL THE RISKS."


BINGO!!! And the insurance companies know that and are not going to make the deal if they lose money!

WOOF! WOOF! A dog with fleas. Don't be duped! Pat gave us some of the facts, but left out (conveniently) others.

See Mel's post and it will make sense to you.

And, like the investors the insurance companies are going to do their math as well. Just because you don't understand it, doesn't make it a dog with fleas. They obviously know something that you and I don't. You would make a good analyst on one of the many speculation programs on ESPN. Let this thing unfold and then it will speak for itself. You are not going to stop it anyway.

 

[Zydo]

This post will probably piss some people off.....so be it.

This thread certainly separates the professionals from the wannabe's.

 

[CHUMPS FROM OXFORD]

"Just because you don't understand it, doesn't make it a dog with fleas."

I understand it. That's why it's a dog with fleas. Woof Woof.

 

[senior-advisor-indiana]

I would be surprised to see it go through the DOI by May 1. Hey Frank American Continental is here in IN. Only the plan J though.