Just when you think the insurance industry can't be more fucked up
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Old 01-03-11, 04:49 PM   #1
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Odds Skew Against Investors in Bets on Strangers' Lives - WSJ.com

Odds Skew Against Investors in Bets on Strangers' Lives

In the summer of 2005, a firm called Life Partners Holdings Inc. said Marvin Aslett, an Idaho rancher 79 years old, had two to four years to live.

It didn't make this estimate on his behalf but for its customers. The company arranges to buy life-insurance policies from people like Mr. Aslett and sells fractional interests to investors, who collect the death benefits when the insured people die.

The investors in a $2 million policy on Mr. Aslett's life would have made a tidy return had he died as projected. But more than five years later, the rancher, now 84, says he runs on a treadmill, lifts weights and chops wood, adding that all of his grandparents lived well into their 90s.

"I'm healthy as a horse," he says. "There's going to be a lot of disappointed investors."

Life Partners, a fast-growing company in Waco, Texas, has made large fees from its life-insurance transactions...

... Attractive projected returns for clients are part of the company's formula for success. Life Partners topped Fortune magazine's 2009 list of fastest-growing small companies in the U.S. In its fiscal year ended Feb. 28, it earned $29.4 million on $113 million of revenue, for a rich profit margin.

Last edited by cactus; 01-03-11 at 04:52 PM.
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Old 01-03-11, 05:10 PM   #2
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Look at this comment on this article:

"To all of those emoting and claiming moral superiority regarding the life settlement industry, here is your reality check..."
and he then describes himself:
"I am 82 years old.
I have a net worth of $5 million ..."

So my life is not as worthy as those with a high "net worth"? So if he runs over me with a car it's not a crime because I'm a mere TURD to him? And he then goes on about net worth vs. liquidity - I won't know the difference because I'm poor, but people who are BORN wealthy can know the difference, buy insurance, and go to business school to get their MBA - PROOF that you must be born wealthy to get a job!

Reminds me of this that I read:
"The new global city creates a global class, with splendid jobs for people also willing to work hard and with an MBA to boot. "
No, they're BORN with the ability to get that MBA!

And it reminds me of when I asked if I was foolish for become an actuary because I thought the insurance industry was unethical ... he said "I make $300K a year. You sure are."

Yet I'm the one that's universally considered a failure.
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