Private equity is buying up annuity and life insurance policies. That may be bad for consumers

[Yo_Mama_Been_Loggin]

Private equity firms are buying up insurers — and the policies they hold — at a feverish pace.

Some groups, namely financial advisors, fear the trend may be bad for consumers who own annuity and life insurance contracts.

Critics are concerned the buyers will wring profits from customers — via higher costs — to boost returns for their investors. Consumers may have owned such insurance for years and depend on a certain price for their financial plans.

They may have bought a policy based on an insurer's financial strength or credit rating. New buyers may not have the same rating, which signifies its ability to pay future benefits, advisors cautioned.

https://www.msn.com/en-us/money/companies/private-equity-is-buying-up-annuity-and-life-insurance-policies-that-may-be-bad-for-consumers/ar-BB1g0jIh

[doc03]

1. My uncle and aunt where fleeced for almost

$500,000 investing in a company that was buying up life insurance policies.
This company was buying up polices from people with terminal illness such as aids and the people didn't die fast enough. The company went bankrupt they lost everything.

[rampartc]

2. if the corporation goes bankrupt, it no longer has to pay

that is how these same companies steal pension plans

[doc03]

3. I have personnel experience with that. nt

[rampartc]

4. too many do.

[doc03]

6. In my case they went bankrupt and dumped

the pension on the PBGC (taxpayers) thanks Ronald Reagan.

[rampartc]

8. i'm glad we have that

but it is criminal that we need it.

[Kid Berwyn]

10. More money stolen with a pen than a gun.

I stole it from Mario Puzo...

“Lawyers can steal more money with a briefcase than a thousand men with guns and masks." -Don Vito Corleone”

[rampartc]

11. woody guthrie (pretty boy floyd)

Yes, as through this world I've wandered
I've seen lots of funny men;
Some will rob you with a six-gun,
And some with a fountain pen.

[Aristus]

5. If they don't already, they're probably going to start offering loans against whole-life policies.

Just another scam along the lines of the home-equity loan. "We don't want you to have your money! We want us to have your money!"

[doc03]

7. That was the scam my uncle and aunt was caught in.

This company told them it was helping people with a terminal illness. They bought up say a $100000 policy for maybe $25000 but the people didn't die fast enough so they went bankrupt and the investors lost everything.

[onethatcares]

9. 40 years and

$40.00 a month earned me absolutely ZERO for a life insurance policy that was to pay me $600K at the end. Seems like the "cost of insurance" kept going up every year and I was notified in slick brochures with small print.

The only time I saw an agent was when the policy was sold to me. When I called the company to inquire when I would be getting some of the annuity, the person on the phone actually laughed out loud and told me that if I wanted to continue with the "life insurance" I would have to pay them a thousand or so up front and my premium would be $387.00 a month.