Saturday, December 19, 2009

Goldman Sachs to give up Life Settlement business?

Read this report. The financial institution will buy the life policies from the owners for a cash amount (which is usually higher than the cash value given by the insurer) and maintain them to collect the proceeds on death.
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4 comments:

Anonymous said...

They should have formed funds for retail subscribers like unit trust.
Life Settlement helps people who have short life and dying and who need money in the meantime. If these policyholders cash out the policy they don't get much. If they borrow against their policies it is like committing suicide and benefit the insurers. Sell it to the life settlement company these policyholders get much money. They get at least 10% more than the life insurer will give. So , you can see these life settlement companies are providing the liquidity for this kind of asset class.
Of course, it is zero sum game. And who will suffer most? The life insurers will go BANKRUPT if all their wholelife policies and Critical Illness policy are kept till death claim. So you see another of the insurers' lies about wholelife products which they tell you that you are covered for wholelife but the truth is they don't want you to hold up to claim and they put up a lot of roadblocks like enticing you to convert to annuity and get 5% more.
Come on, this is a trick to get you to terminate.
The insurance agents are abetting in the scam by the insurers and are accessories of the fact.
I hope the life settlement scheme in Singaopore will pick up and to teach the life insurance companies in their own game of lies.

December 19, 2009 1:50 PM
Anonymous said...

The reason life insurance companies are confident that they will not go bust is becuase only a few policyholders will keep their wholelife plans till old age. If they are not confident they will set up obstacles along the way like the conversion to annuity gimmick to stop these policies in the track.
These companies are cheats and they are not transparent. The insurance agents are silent on this too.
When selling you a wholelife product the agents will tell you that you need coverage till old age. They learned this from the company but this selling ploy.The truth is it is disadvantageous to the company becuase the claim amount is so much bigger than the cash value if you terminate at age 60.The saving for the company is a lot.
That is why the life insurance companies are worried that life settlement becomes popular. This means all life policies will end up in claim. This means the companies will go bankrupt.
So, is it true that you need a wholelife to cover you for wholelife? Is the agent telling you the truht. Is your agent sincere?
No, the truth is the agents want to earn a bigger commission from you becuase wholelfie products pay very high commission and the agents get paid for many years.
Who pay ? you suckers, policyholders.So, is it a wonder the paltry return and low protection you get?

December 19, 2009 5:03 PM
Anonymous said...

A life settlement special purpose investment company should be set up here to buy life policies from people who need money for health reason. Investment is then open to investors whose money will be used to buy and fund future premium of the policies.
This will fulfill the purpose of wholelife products as they are intended for lifetime coverage.
There are enough wholelife policies by all the life insurers in Singapore to provide interested parties to start unitised funds.
Policies owned by people who have serious medical conditions, 'terminal' or people who are 60 years old with medical conditions will have different cash values but which will be definitely much high than if they were terminated or offered by insurers for conversion to annuity.
These products should provide good investment for investors. The good return need not depend on early death of the policies which has been seen as morbid, eg to benefit from someone's death.The insurers are worse in this respect. They hope that you terminate when you are old to save themselves from bigger payouts.The insurers were never truthful when they sold you the wholelife products.Eg.they told you, you pay for 10 years and have lifetime coverage. Life settlement will make the insurers' dream come true, not just one policy but all policies.
Let's hope the existing life settlement companies will offer local life insurance policies in the form of unit trust for investors.

December 20, 2009 6:56 PM
life insurance settlement said...

To buy insurance policies for industry employees is good way to secure families of employees.

December 27, 2009 10:54 AM

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