Wall Street investors are waiting for thousands of strangers to die for profit
A secondary market for life insurance allows individuals to sell their policies to investors. When the policyholder dies, the payout goes to the investor rather than the original beneficiary. This episode explores the origins and mechanics of this multi-billion dollar industry.
The practice of selling life insurance policies emerged from a desperate financial arrangement during the AIDS crisis. Today, it has evolved into a sophisticated market where major Wall Street firms purchase these policies as investments.
By selling a policy, the original owner receives cash immediately instead of waiting for the payout after death. While this allows individuals to access funds while still alive, it shifts the eventual death benefit to the investor, turning human mortality into a financial asset.
