Life settlements being securitized

This should work out well.

From Wikipedia:

A life settlement generally refers to the sale of a life insurance policy by a policyowner for less than the face value of the policy to third party investors.[1] The third party investor(s) plans to profit at death of the insured by collecting more in death benefits that were paid out (e.g., the purchase price, the transactions costs, and premiums). This translates into higher profits the sooner the policy holder dies.

From WSJ:

The product, known as a life-insurance settlement, has come under greater scrutiny following the financial crisis. In recent months, Wall Street firms have begun securitizing the products by slicing them up and selling bundled pieces to investors.

Regulators are concerned about the securitization of these products and whether those who are selling their life-insurance policies and those buying them know exactly what they are getting, according to people familiar with the matter.

Some see echoes of the residential-mortgage market, in which pieces of mortgage-backed assets became widely distributed among financial firms and few people had a good grasp of the value of the underlying mortgages.

This is kinda funny.

When checking LISA, The Life Insurance Settlement Association website to learn more about the industry, they have a page that beckons "LIFE SETTLEMENTS SIMPLIFIED Understand the process." Check out the link so you can learn more. This is what comes up for me:

Depending on internet speed, this page may take a few minutes to load

Simplified eh? And that's before securitization.

I got an idea.

We should let Wall Street do this without any regulations and keep the rule of contractual law fuzzy, re: securitization, to make settlement as complicated as possible in case something goes wrong. Then in a few years we can check back to see how it's worked out.