In the latest setback to investors who buy existing life insurance policies to collect the death benefit, a recent court ruling in Florida gave Prudential Financial the right to void an existing $10 million life insurance policy that had been sold to a woman in her 70s before being resold on the secondary market. It seems a clear case of stranger-originated life insurance: the woman, in her 70s, had submitted an application stating she had a net worth above $10 million; in reality, this was only $600,000. More convicting still, the agent involved in the transaction, Steven M. Brasner, had recently been found guilty of grand theft, fraud, and other offenses tied to $78 million of policies.
For indexed universal life buyers, chronic illness riders are more popular.
Many clients have little or no protection for their ability to earn a paycheck.
Most of the rest of the country looks good. But what happened to Idaho?
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.