The deal offered to affluent seniors sounds awfully good: two years of free life insurance, plus a luxury car, a cruise, or a cash payment. All you have to do is take out a multimillion-dollar life insurance policy with a loan you're not obligated to repay and sell or transfer the policy in a couple of years. The buyers? Small investment firms, which package and sell the policies to hedge funds, investment banks, and pension funds. The investors continue to pay the premiums and cash in on the death benefits when the insured seniors die.
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