Profiting on Death

Investment banks are planning ways to bet on the life and death of individuals with life insurance policies, as described in an article published in the New York Times on Sunday.

“The bankers plan to buy ‘life settlements,’ life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person,” Times correspondent Jenny Anderson reports. “Then they plan to ‘securitize’ these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds,” to be sold to investors.

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