Originally Posted by brewer12345
- Investor hands money to an older person to go get a big LI policy. After 2 years, the elder signs over the policy to the investor for a cash payment and the investor waits to collect.
"After 2 yrs, ... signs (it) over"??
Sounds sort of like the straw man schemes that burned so many mortgage lenders. Of course it burned the schemers when they were caught, and are now serving time for fraud.
There are three parties to a LI contract- the owner, the insured, and the beneficiary. The owner decides the bene and can change it as often as he pleases. What investor, as beneficiary, would risk not being the owner?
It's all moot anyway if there's no insurable interest.