@Geiger_Capital | Apollo has been betting on the deaths of senior citizens by acquiring illegal life insurance policies and then funneling their payouts through offshore shell companies…

X ^ | April 29, 2024 | Geiger Capital @Geiger_Capital

[ransomnote]

[H/T Grey_whiskers]

https://twitter.com/Geiger_Capital/status/1785134881481048569

April 29, 2024

[NEMDF]

There have been “viatical settlements” in the life insurance industry for years. Essentially, an entity looks for existing, in-force life insurance policies that can be purchased from the owners. Their gamble is that the insured person dies (so a claim can be made), sooner rather than later.

The advantage to the policyowner (often the insured person), is that they can get a cash payment before death, as the viatical company will generally pay the cash value of the policy, to acquire the ownership rights.

The purchasing viatical company does an analysis as to whether the insured is likely to die within a certain time frame, kind of reverse underwriting. Possibly they took it too far in this situation.

[Magnum44]

I wasnt sure who/what Apollo was. I guess its an insurance company.

When I was much much younger, we used to joke about a get rich quick scheme where you would go out and find people of high risk and low means (drug addicts, etc) and offer to buy them a life insurance policy to pay for their burial needs when those arose (likely soon based on the demographic). Buy a $10k policy and pay $1K for burial and make yourself beneficiary (1980 prices). Never took it seriously, but seems like Apollo did.

[Valpal1]

It’s also illegal to take life insurance out on a stranger. You are supposed to have an insurable interest in the insured. Spouse, parent, child.

Otherwise, it could become a murder for hire free for all.

[Magnum44]

I thought Lloyds of London would insure anything...for a price...

Partially joking there. Dont know anything about the laws involved.

But more seriously asked, if the insured agrees to the beneficiary, does the law really say its still illegal? Or does one have to pay for their own insurance in any case where its not family or close relation?

[Valpal1]

I think most companies do not allow 3rd party insurers unless it’s corporate as part of a pay package.

And the insuree always has to sign off except for minors.

[Freest Republican]

Apollo are scumbags.

If one had to guess which hedge fund would be engaging in this behavior-Apollo would be near the top of many lists.

[Mean Daddy]

I you think about it, not really. A person has a $100,000 life insurance policy & a company offers XX number of dollars. Maybe the insured has other bills that they needed the $$ now, not later. Reverse mortgages can be helpful when a person is equity rich, cash poor.