tag:blogger.com,1999:blog-14963913.post4900676687746998906..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: Life Insurance SettlementsKid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-14963913.post-17441533545424936362010-12-15T03:44:26.111-05:002010-12-15T03:44:26.111-05:00Friendly advice, you should put the money you woul...Friendly advice, you should put the money you would have spent on extra <a href="http://doctorsagency.com/life-insurance" rel="nofollow">life insurance</a> policies into your savings each month, where it can be used if and when you need it, no strings attached.HyunChardhttps://www.blogger.com/profile/04911585586646877486noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-9554188184656373642009-09-09T18:49:41.767-04:002009-09-09T18:49:41.767-04:00There is a very simple solution for this, the cons...There is a very simple solution for this, the consumer buys whole life insurance. Sacrifice and pay more now and have the policy "paid" by a certain date and this isn't a problem. Call it enforced savings, call it whatever you want, but it works. But people don't want to "save" and defer instant gratification. And FA's don't like it because it diverts dollars that they want to collect fees on for "managing." I could go on and on. But smart people do this. Oh, I forgot, that's another problem....Danielhttps://www.blogger.com/profile/15018793399599951413noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-64361788193885104102009-09-06T19:18:17.957-04:002009-09-06T19:18:17.957-04:00actually, I'm not sure I care if these securit...actually, I'm not sure I care if these securities are good investments... And the transfer of profits is from insurance companies to the end purchaser of the security - which isn't necessarily a bank - it could very well be an investor like me.<br /><br />The reason is doesn't matter if the securities are good investments is because comparing these securities to MBS and suggesting that a similar meltdown is imminent is bunk reasoning - the problem with MBS was massive underestimation of risk combined with massive leverage. With life insurance settlements, you can certainly be wrong about your actuarial table, but everyone dies eventually. As long as you limit leverage, you can't cause a catastrophic meltdownKid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-70627002075695217592009-09-06T14:35:04.807-04:002009-09-06T14:35:04.807-04:00Regardless of how you feel about the securitizatio...Regardless of how you feel about the securitization of life insurance from a moral level -- the bigger question is: Are these securities good investments? Part of the problem is that the insurance companies are planning on underpaying vast numbers of policy holders (as in your 58k example). This new practice of securitization does not, as some suggest, pit Wall St. against mom and pop America. This practice pits Wall St. against the life insurance business by transferring profit from insurance companies to banks. (Clearly, no one loses sleep over who loses in this scenario -- but it is worth noting that this could create a crisis in the insurance business)Anonymousnoreply@blogger.com