InvestmentNews

By: Darla Mercado

The American Council of Life Insurers is asking policymakers to bar the securitization of life settlements.  The group said yesterday that securitization would encourage promoters — keen on developing a secondary market — to entice seniors to sell their life insurance policies, even when it’s not in their best interests to do so.

Commenary by Michael Abraham:

While I am not a particular fan of the trend towards securitization this statement from the ACL is in my opinion plain ridiculous.  Having just been involved in the development of an infomercial and been party to the legal opinions on the risk warnings it seems to me that before you can entice seniors you will have already informed them on more than one occasion of the reasons for not being enticed. It also somewhat belittling to think that people above the age of 65should be thought of as such sad cases.  It is  much sadder to see these same people paying premiums to the members of ACL when they have no need to.  As usual it is ‘do as I say not as I do’ – hypocrites!

http://technorati.com/business/finance/article/ten-life-settlement-industry-predictions-for/

Published on 04 Feb 2010 at 09:26 pm