Too Good to Be True

Stuart Egrin, director of regulatory affairs at Invescor, which provides life settlement back office and brokerage services to B/Ds and insurance companies, says that advisors should be wary if clients say they have been approached to purchase life insurance for eventual resale to investors. If they have no need of a policy, but have been offered the chance for a high-face-amount policy with high premiums and have been promised help in paying for the policy, or have been at all coached in how to fill out the application–or if the application has been filled out for them–it is a case of STOLI (stranger-owned life insurance) and should be avoided.