Friday, October 22, 2021

No. 443: The Secondary Market for Life Insurance Policies

In my 2015 book entitled The Insurance Forum: A Memoir, Chapter 9 is entitled "The Secondary Market for Life Insurance Policies." In that 12-page chapter, I discuss the origin and growth of the secondary market, including viatical settlements, life settlements, and stranger-originated life insurance (STOLI). I refer to STOLI as speculator-initiated life insurance (spinlife).

I have long been concerned about the negative impact of the secondary market (the "unselling" of life insurance) on life insurance companies and their policyholders. Recently I heard reports about life insurance companies and life settlement companies competing vigorously against one another in their efforts to persuade policyholders to cash in or sell their life insurance policies. For that reason, I decided to prepare this blog post to revisit the subject. After you read Chapter 9 of my Memoir, I would welcome your comments.