Who is selling all this underpriced life insurance?
Asks Matt Levine in two columns on April 30 and May 2: People could take out new life insurance policies specifically to sell to investors. Go to an insurance company, get a $5 million policy, have it pay out to a trust, make an investor the beneficiary of the trust, have the investor pay the premiums, and charge the investor a fee for the exposure. This is called “stranger-originated life insurance,” or STOLI, and it is largely not allowed. ...
