Investor owned life insurance is a controversial topic, to say the least. But those individuals not in the life insurance industry may be wondering why and what does it mean when a investor owns life insurance? Investor owned life insurance is when someone without an insurable interest in your life, meaning they have no prior family or financial relationship with you or concern with the continuance of your life, purchases a life insurance policy on your behalf and pays the premiums for you.
Many life insurance organizations have spoken out against investor owned life insurance, and are against relaxing laws on the subject. The organizations biggest fears are that life insurance owned by an investor turns traditional life insurance policies into a commodity, and can also be an outlet for criminal activity and fraud. If you are interested in finding out more about this subject, please contact us at LIVEpdq today.