Wall Street Bundling Life Insurance to hurt Funeral Industry-YourFuneralGuy

7 Sep
The sale of life insurance policies will hurt the funeral industry

The sale of life insurance policies will hurt the funeral industry

Because of the severity of the recession banks have been buying up life insurance policies. Some of the big banks are bundling them together just as they did debt before the Wall Street Crash a year ago. These  Wallstreet banks are selling them as bonds.

This is a risky investment scheme. This will hurt the funeral industry because in the majority of cases life insurance is the vehicle that folks pay for a funeral.

This is another bad sign for the traditional funeral industry in the USA.

From the New York Times:

The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.”

This  will mean lost income for the Funeral Business.

Funeral industry|Funeral Blog by Your Funeral Guy.

The Funeral Industry takes another hit

The Funeral Industry takes another hit

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