Life settlement financing is the end result of a very unique process. Life settlements are a process where a policyholder sells their insurable interest for the living benefit of their life insurance policy. After all of a policies holders medical records are obtained and life expectancies are determined an offer is made. Individuals or companies can do life settlement financing. These holdings resemble a stock portfolio and they are layered with all kinds of risk.
A purchasing company that purchases a large bulk of policies and sells them to an end purchaser usually does life settlement financing. An end purchaser is usually a huge company with Insurance and usually some real estate holdings. These investments are all quite similar in terms. Some people use insurance and life settlements as a way to make illegal business legal. Some of the funds in this industry are from drug dealers and illegal enterprises. This is the dark side of insurance and has taken place since the beginning of time.
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