If You Think The “So Called Death Panels” are Something To Worry About – Read This and Get Educated
Posted Sep 05 2009 10:21pm
Banks are trying to create new products, but is the new product “Human Hedge” Funds?
If you are worried about so called government death panels, then you need to read on here. As I have mentioned many many times, Wall Street invests heavily in Business Intelligence software, they get their numbers and information this way to bring to the “think tank”, and this is exactly what we have going on here, one big scary think tank.
Under this type of plan, you would have the opportunity to have investors buy in to your life insurance policy, thereby keeping the number of cancellations down, but we all know what happens when other people’s money comes into to play, they get involved in some aspect of your life, and in this case if you are perhaps living too long and they are not getting a fast enough return on their money, they will inquire, so what do we have here? This is obscene to say the least.
One of the focuses here is to allow an individual to cash out their policy at a higher rate of income than what the insurer would offer. What happens if you are living too long, is there a death squad sent out to see why? As we have heard many times from CEOs, the focus is the investors and not humans, sad to say of those with little or no morals.
“In addition to fraud, there is another potential risk for investors: that some people could live far longer than expected.”
Even as an investor, how are you going to be assured the policies are legitimate? Read on…quote below.
“The solution? A bond made up of life settlements would ideally have policies from people with a range of diseases — leukemia, lung cancer, heart disease, breast cancer, diabetes, Alzheimer’s. That is because if too many people with leukemia are in the securitization portfolio, and a cure is developed, the value of the bond would plummet.”
They are running algorithms to simulate what would happen if people live too long to try and get some projections on how this would work. This may or may not be a good deal for the life insurance companies in the long run, but frees up operating money. Now we also can’t over look the fact that companies talk to each other too, so where do the folks get this information, from both life and health insurance companies and perhaps even the government. Again, this is projecting, but would health services be denied to individuals so they don’t have the potential to live as long, to keep investors happy and a potential collaboration taking place between investors/health insurance/life insurance companies.
As I have so many times mentioned, we need laws that are “algorithmic centric” to spell out and see the exact formulas that are used to calculate the investing policies we use today. Health Insurance way back started as “non profit” business to spread the expense of healthcare over a large number of individuals so everyone could afford healthcare and today we are so far from that concept it isn’t funny, as the dollar calls the shot and not healthcare.
Just think, you may have to be suffering from some major disease, breast cancer, diabetes, etc. before you could have the opportunity too as there will be a bunch of investors looking over your shoulder wondering how long it’s going to take for you to check out so they can see a return on their money. I don’t care about other types of investments and the algorithms they run, but when it comes to healthcare and human lives it should be open source so we can all see how we are graded or scored and what parameters, data arrays, etc. are used.
Healthy people in this, well it appears there’s too much unknown here, they want “sick” people where they can hedge and bet on your demise. In essence the healthy person might end up being discriminated against as there would not be enough information on if he/she has a disease that has the potential to shorten their life. Applicants will be scored on their policies no doubt, as that is the way the world works today and you may need enough chronic illnesses to play in this so called “dead pool”. If you are cured, then again, you don’t fit this business model.
This could circle around indefinitely with all types of misuse too. Gee if you want to purchase life insurance are you going to require medical records that show some type of health problem to qualify? If you somehow collaborate with your doctor and find something and begin treatment, well you risk a higher score with qualifying for health insurance now and get your premiums raised, you take more drugs possibly, but hey now you qualify for life insurance that you may want to leave to your family. In the long run though, you have done what investors want, you are now sick and have a disease that fits into the “candidate pool” and you need that life insurance so once again investors can make some money.
Ok so if you cash out, you could stand to make some money over and above what the insurance company would pay according to this model and if you keep your policy and live too long, well I discussed that above and investors are going to get impatient for their money if you live too long!
This is one big reason we need regulations on the insurance business all the way around. We are now just integrating medical records, but insurance has had high levels of integration and data mining for some time now. Please feel free to comment and add/or correct anything I may have missed here too. BD
After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea to make money. They think they may have found one.
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.
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.
“We’re hoping to get a herd stampeding after the first offering,” said one investment banker not authorized to speak to the news media.
But if a policy is purchased and packaged into a security, investors will keep paying the premiums that might have been abandoned; as a result, more policies will stay in force, ensuring more payouts over time and less money for the insurance companies.