Yesterday’s Indianapolis Star report on Evan Bayh’s offshore holdings revealed that the Senator-turned-lobbyist is getting rich off of multiple investments housed in the Caribbean.
Among Bayh’s assets are his holdings in an insurance scheme that makes death bets on senior citizens: his investments buy out life insurance policies belonging to ill and elderly people, and make more money the sooner those people die.
“Those investments include two limited partnerships — FCI Co-Investors I and II — that deal in so-called life settlements. The investments are controversial because they involve buying out ill and elderly people’s life insurance policies, in hopes of making a profit when those people die. The sooner the person dies, the more money investors make.
“Bayh reported investments of $250,001 to $500,000 in each of the two FCI partnerships.” (Chelsea Schneider and Tony Cook, “Bayh Invests In Offshore Company,” Indianapolis Star, 11/2/16)
Evan Bayh is literally betting on senior citizens to die quickly.
Bayh’s laughable rhetoric about standing up for Indiana unravels by the day. He used his office to get rich on the backs of Hoosiers, leveraging his political influence to orchestrate a soft corporate landing while he was still in the Senate.
As if it wasn’t bad enough that Bayh betrayed Hoosiers, now he’s betting against them – and profiting off their tragedy.
BACKGROUND
The Street: “To The Casual Observer On Main Street, Investing In Life Settlements Is A Morbid Bet On Mortality, A Ghoulish Trade On Death That Only Wall Street Can Possibly Have The Stomach For.” (Shanthi Bharatwaj, “Hedge Funds Swoop In On Subprime Life,” The Street, 6/1/11)
Critics Have Called These Investments “Death Bets.” “Life settlements are policies typically sold by ill or elderly people to investors, often because they can’t afford or no longer need the coverage. Investors bet the future death benefit will exceed the cash spent to buy the policy and premiums they will need to pay while waiting for the person to die. Critics sometimes call them ‘death bets.’” (Leslie Scism, “AIG Says It Settled Legal Dispute Over ‘Life Settlements,’” The Wall Street Journal, 2/29/16)
Life Settlements Are Policies Typically Sold By Ill Or Elderly People Who Can’t Afford Or No Longer Need Life Insurance Coverage. “Life settlements are policies typically sold by ill or elderly people to investors, often because they can’t afford or no longer need the coverage.” (Leslie Scism, “AIG Says It Settled Legal Dispute Over ‘Life Settlements,’” The Wall Street Journal, 2/29/16)
The Earlier The Policy Holder Dies, The More Money The Investor Makes. “The earlier the policy holder dies, the more money the investor makes, while the longer he or she lives, the lower the returns for the investor.” (Shanthi Bharatwaj, “Hedge Funds Swoop In On Subprime Life,” The Street, 6/1/11)
Investors Bet The Future Death Benefit Will Exceed The Cash Spent To Buy The Policy And Premiums They Will Need To Pay While Waiting For The Person To Die. “Life settlements are policies typically sold by ill or elderly people to investors, often because they can’t afford or no longer need the coverage. Investors bet the future death benefit will exceed the cash spent to buy the policy and premiums they will need to pay while waiting for the person to die. Critics sometimes call them ‘death bets.’” (Leslie Scism, “AIG Says It Settled Legal Dispute Over ‘Life Settlements,’” The Wall Street Journal, 2/29/16)