What are we talking about you say, It’s called Stranger Owned Life Insurance or Investor Owned Life Insurance. Without getting into a very detailed explanation, investors offer to insure your life and pay the premiums. When you die they obtain the death benefit, the investors or life insurance broker either offer you money upfront or something else (I’ve heard of cars being offered) or they offer you free insurance for a couple of years.
There are so many reasons why this is just wrong, needless to say if someone approaches you with this idea just say no thanks and get out of there. Since the market meltdown some of the investor money is gone now but there is still people out there pushing this stuff. Remember if it sounds too good to be true then it is.
Check out some of the news broadcast’s on STOLI or IOLI Life Insurance…
STOLI ABC News
Is Someone Investing In Your Death?
STOLI KWTV Oklahoma City