Insurance
Jun. 9, 2009
Some Seek to End Life Insurance Investing
Entrepreneurs are enticing elderly clients to buy life insurance policies, paying the premium and offering a lump payment, with the intent to sell the policies to other investors. The investment companies, which cash in on the high-end policies after the insured dies, say the practice is legal. The insurance industry and some states are crying foul.
By Ciaran McEvoy
Daily Journal Staff Writer LOS ANGELES - When is purchasing someone else's life insurance policy an innovative investment and when is it a fraud? In a world where you can hedge anything - even the weather - some companies that found success purchasing life insurance polices of end-stage AIDS victims have moved on to another business model. Authorities say entrepreneurs are enticing elderly clients to buy life insurance po...
Daily Journal Staff Writer LOS ANGELES - When is purchasing someone else's life insurance policy an innovative investment and when is it a fraud? In a world where you can hedge anything - even the weather - some companies that found success purchasing life insurance polices of end-stage AIDS victims have moved on to another business model. Authorities say entrepreneurs are enticing elderly clients to buy life insurance po...
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