“The Troubling Trend of ‘Gray Sheeting’ Life Insurance Policies”

“The Troubling Trend of ‘Gray Sheeting’ Life Insurance Policies,” by Wm. Scott Page, Advisor Magazine

Quote:

“An underground market of buyers and sellers within the life insurance industry is taking advantage of an inefficient marketplace to systematically underpay for life insurance policies. This phenomenon is what we call gray sheeting. The good news is that it’s easy to avoid having your policy gray sheeted, by having it appraised before you put it on the market. For years, some in the insurance industry have been trying to convince agents and advisors who are counseling clients about selling a life insurance policy that they need to have that policy appraised before they put it on the open market. And it’s becoming incredibly clear that this is more important than ever.”

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

This is a disturbing development.