Securitization of Permanent Life Insurance Policies

摘要

A recent front-page article in the New York Times (Anderson, J., "Wall Street Pursues Profit in Bundles of Life Insurance," Sept. 6, 2009) detailed how several major Wall Street banks are planning major forays into the securitization of permanent life insurance policies. The article's sidebar example is illustrative of the opportunity. A 72 year-old man has a $2 million whole life policy, is strapped for cash, and has a short life expectancy (to age 77).