Securitizing Life Settlements. ⇒
9 September 2009, early morning
"The bankers plan to buy 'life settlements,' life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to 'securitize' these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die." What the Fuck?
This is a post from my link log: If you click the title of this post you will be taken the web page I am discussing.
I met a couple people at Waterloo who worked on stuff like this. Not the securitization of life settlements but buying them out and their company profiting for it. The two people I talked to about this both had reservations about the entire practice but also said that they had personally met people who really were better off taking a settlement (IE: could use the cash for things before they die and didn’t need insurance money for dependants).
by tyler on September 9 2009, 1:12 pm #