Arguably, the secondary market for life insure can be both a good deal for the investor and the insured once the insurance companies embrace the idea from the proper prospective. The notion that life settlement will put insurance companies out of business or cause rates to go up is completely unfounded and tremendously false. If anything, once the insurance company realizes the true value of life settlement, they will be able to probably sell more life insurance with the added value to the consumer knowing they can sell the policy in the secondary market if they choose too. Much like a quality brand of car, the resale value typically inspires people to choose a product over others knowing they have options later if they want to sell it later. Investors who buy these products make their choices based on the quality of the reputation of the company who produces it. Clearly, all secondary markets inevitably add and raise the value of the primary market associated with any particular product. This benefits everyone, especially the consumer which is the most important aspect of any ethical standard in any given market place.
So what your saying is, it is a bad thing for someone to get some of their money back after paying years of premiums when they no longer need the insurance policy or no longer afford?
Would that make life insurance pretty much worthless? Why should anyone buy it in the first place?
THE SALE OF A LIFE INSURANCE POLICY TO AN UNRELATED THIRD PARTY IS NOT A GOOD THING CUZ THE BUYER HAS NO INSURABLE INTEREST, WHICH COULD CREATE AN INCENTIVE TO EXPEDITE THE EARLY DEATH OF THE INSURED!
Larry Logic, So you think that everyone is going around trying to ‘expedite the early death of the insured’? WOW – then we really are in a very mad and crazy world….
Arguably, the secondary market for life insure can be both a good deal for the investor and the insured once the insurance companies embrace the idea from the proper prospective. The notion that life settlement will put insurance companies out of business or cause rates to go up is completely unfounded and tremendously false. If anything, once the insurance company realizes the true value of life settlement, they will be able to probably sell more life insurance with the added value to the consumer knowing they can sell the policy in the secondary market if they choose too. Much like a quality brand of car, the resale value typically inspires people to choose a product over others knowing they have options later if they want to sell it later. Investors who buy these products make their choices based on the quality of the reputation of the company who produces it. Clearly, all secondary markets inevitably add and raise the value of the primary market associated with any particular product. This benefits everyone, especially the consumer which is the most important aspect of any ethical standard in any given market place.
So what your saying is, it is a bad thing for someone to get some of their money back after paying years of premiums when they no longer need the insurance policy or no longer afford?
Would that make life insurance pretty much worthless? Why should anyone buy it in the first place?
THE SALE OF A LIFE INSURANCE POLICY TO AN UNRELATED THIRD PARTY IS NOT A GOOD THING CUZ THE BUYER HAS NO INSURABLE INTEREST, WHICH COULD CREATE AN INCENTIVE TO EXPEDITE THE EARLY DEATH OF THE INSURED!
Larry Logic, So you think that everyone is going around trying to ‘expedite the early death of the insured’? WOW – then we really are in a very mad and crazy world….