Comments on: Why The Life Insurance Settlement Is Becoming More And More Popular

By: Stephen

Stephen — Mon, 26 Apr 2010 15:00:26 +0000

I am not sure I see where the losers come in to play, unless it is from a “lack of knowlege” perspective. If a person can settle a policy for a portion of the face, greater then the cash value, or completely losing the coverage if the term is expiring when the coverage can be converted, but premiums are unaffordable for the insured. If you have a company that will take over the premiums, giving the insured the freedom of finacial stability and the freedom to secure more or other coverage – who is losing? The insurance company sells more coverage, the agent get multiple commissions, the insured gets cash and freedom. Who is losing again?

By: Joe

Joe — Fri, 16 Apr 2010 20:01:17 +0000

There are other losers in this mix. For one, there are seniors who may be taken advantage of by the settlement company. For another, there are all the other people paying for life insurance policies. When the insurers start losing too much money from payouts to the settlement companies, they’ll likely jack up the premiums to compensate for the increased risk that they will have to pay out…

By: Mike

Mike — Fri, 16 Apr 2010 19:37:12 +0000

It’s also BIG money on wall street these days. Goldman Sachs was developing an index of life settlements for trade on the open market but I don’t know how far they got or whether the latest fraud suit filed by the SEC against GS is going to affect their involvement in life settlements since they can be somewhat murky water, not unlike sub-prime mortgages…