Life Insurance as an Asset Class within a portfolio

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Wall Street Pursues Profit in Bundles of Life Insurance

By JENNY ANDERSON

Published: September 5, 2009

new york times

[FinancialHands]

There are viatical and life settlement companies that buy the interests in the life insurance from the policyholders. The banks are looking to bundle these up in packages and sell them, but after transaction fees it leaves the investor with an investment the may lose money on, but nothing changes for the life insurer, or the policy holder, the investor is the only one that loses out.

[ytgv3fc7]

the video content shows no date. Comparing prices of gold us$ and Dow Jones industrial and S&P it looks to be March of 2008. This is really old to use as "financial advice" for the life insurance bundles / securities type of investment. In particular, if people don't die when it's estimated they will, like HIV is cured for many people, that will drastically change the benefits$.

[FinancialHands]

People get Life Insurance as a hedge against the loss of human capital (future lifetime income). While curing HIV may have an effect on the aggregate amount of lifespan for a country, to say that because of that life insurance is not needed, or outdated, is an inaccuracy. No other financial product provides the liquidity and tax-advantages of life insurance if you get T-boned at an intersection tomorrow morning. If the investment objective is accumulation, there are better instruments out there.

[ytgv3fc7]

I don't think you understood me. Life insurance as a product is like sub-prime mortages as a product. The issue I'm getting at is the purpose of life insurance BUNDLES is for having layers of derivatives and fraud within them all just like before. The benefit$ change will again bankrupt all who invest in it, and strongly encourage early death for those who have the life insurance packages underlying the derivatives.

[FinancialHands]

So your saying that large life insurers are investing in derivatives, which will bankrupt the folks who invest in these insurers? As far as I know life insurance reserves are regulated by the federal government. Each company has some wiggle room as to what they consider "safe" investments to invest reserves into. They invest heavily in treasuries and high quality corporate bonds (89%) of holdings or more. If possible, please send me an article as I'd like to learn more.

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