Unusual offer could give teachers in Florida insurance protection
Thousands of teachers in Pasco County, Florida, recently received an offer that may be too good to be true. The teachers were offered a chance to receive life insurance for free with policies being paid for by the Pollock Financial Group. The group has offered to match teachers with wealthy investors that are looking for lucrative ways to invest their funds. For many teachers, the offer seems to be too altruistic, and this has raised concerns among Florida’s insurance regulators as well.
Pollock Financial Group seeks to pair wealthy investors with teachers seeking insurance coverage
Through the Pollock Financial Group, investors would be able to spend a veritable fortune on life insurance policies for teachers in Pasco County. Some investors may be so cavalier as to purchase coverage for other school staff as well, such as bus drivers and maintenance personnel. In the event of a death, the life insurance policies list their investors as partial beneficiaries. The investors would not receive all of the financial payout associated with these policies, of course, as the majority of the benefits would go to the families of those that have passed away.
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Offer may seek capitalize on death more than life and has drawn the attention of state regulators
Those skeptical of the offer suggest that it is a throwback to practices that became somewhat popular in the mid-2000’s. Back then, commission-paid insurance agents aggressively encouraged older consumers to purchase highly expensive insurance policies in order to flip investors. At its simplest, the practice is based around acquiring more profits from the deaths of policyholders rather than from the premiums they pay.
Regulators show concern for the implications of unusually altruistic offer
The offer is currently being considered but has drawn the attention of the state’s insurance regulators. Many regulators are currently concerned over the implications of what the offer could mean for those interested in life insurance. In Florida, third parties are banned from taking out life insurance policies for another person unless they are related or the third party is designated as an employer.