It's little different than a reverse mortgage. These people have paid into their life insurance policies for years. Rather than passing it on to their survivors, they're recapturing that money by selling the beneficiary rights to the people cashing them out.
ive heard the same thing, although, apparently it was a niche market and it appears wall street wants to make it widespread now. btw, here in canada it doesnt happen because a beneficiary needs to be stated, i.e. next of kin instead of a brokerage house.
