New bonds for life insurance investors

Wed, 22 Aug 2007

One aspect of the life insurance industry, Life Settlement Backed Securities, are beginning to spread from America to the UK.

The policies, also known as death bonds, refer to the process whereby elderly Americans sell their life insurance policy to an investment company. This company then pays the premium until the person dies.

This aspect of the industry has a shady past, because it is basically banking on death. One expert in the industry, Phillip Loy, reportedly commented: "Insurance companies want a person to live longer than the company estimates. We, on the other hand, want the person to die before their life expectancy."

British investors are now buying up death bonds from provider companies such as American Viatical Services. London investment firms, hedge funds, banks and institutional investors are making the bonds part of their investment portfolios. Many investors continue to regard the bonds as too macabre.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

newsnews rss
Life Insurance news
New life insurance deal - Thu, 21 Aug 2008
Life insurance agreement between two companies - Mon, 18 Aug 2008
UBS unable to cover life insurance clients - Fri, 15 Aug 2008
More News
LV 50 Plus Plan

The LV 50 Plus Life Insurance Plan from Liverpool Victoria is cover for people over the age of 50.
Click here to apply

Mortgages