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How the AIDS crisis helped create a multibillion-dollar death-speculation market
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They dont offer more than the insurance payout, that's the whole catch. They give you 20 cents on the dollar today in order to pocket the 80 cents when you die and your family gets nothing.
A very similar thing is dead peasant policies by your employer, who can secretly take out policies on low level employees who have health issues to bet on a payout.