A segment from Michael Moore’s TV Nation (1994) in which Karen Duffy investigates investment brokers who are offering their clients the life insurance policies of AIDS patients at discounted prices
Here's how it works:
An AIDS infected individual has a life insurance policy worth $100,000.
You offer him $50,000 and he accepts the deal. When he dies you get $100,000.
From the payout, you've recouped $50,000 + another $50,000 in profit.
Pros:
1 Money upfront to the AIDS patient that might need the HELP upfront. Financial relief could be beneficial at this point in their life.
2 Presents a huge opportunity to make a profit by the investor.
3 That's all I can think of..
Cons:
1 Presumes, just because he/she has AIDS, that is in a desperate financial condition.
2 It also presumes that the person is going to die in 6-months (or whatever their prognosis is). Not everyone dies in the time a doctor thinks it will occur. What if all the money is spent and then the patient doesn't die???
3 The family can not reap the benefit of the life insurance policy.
4 By paying out the policy to the insured while he/she is still alive, there is a risk of the AIDS patient dying after having spent all the money.
5 If that happens, then the burden of death falls onto the family through the funeral expenses that the life insurance would have paid out after the death.
6 This arrangement is very short-sighted in the big picture of death and finance as enumerated above.
These people are nothing more than vultures waiting for someone to die.
Thoughts??
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