The Journal Times

By: State Sen. John Lehman Racine

Years ago there was a popular television game show called “You Bet Your Life.” Today, unscrupulous scam artists are playing an updated version with a financial scheme targeting seniors, the severely ill and investors using “stranger-originated life insurance.” But instead of fabulous prizes and vacations, victims are left with parting gifts like unexpected tax liabilities, legal bills and problems purchasing life insurance.

The scam is based on “viatical” life insurance transactions. Created to help gravely ill individuals, these agreements allow people to cash in their life insurance policies before the date of maturity and use the funds to cover medical bills or health insurance costs.

Commentary by Michael Abraham:

The sooner all states outlaw STOLI the better it will be for all!

http://www.journaltimes.com/news/opinion/editorial/article_e4a787fc-1a85-11df-a7bd-001cc4c002e0.html

Published on 15 Feb 2010 at 09:33 pm