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Planet Money · Friday, August 14, 2026

The Evolution of Life Settlements: From AIDS Crisis to Multi-Billion Dollar Industry

The life settlement industry, which allows people to sell their life insurance policies, began as a compassionate response during the AIDS crisis. A wealthy benefactor helped Scott Page and his partner Greg by fronting money for life insurance premiums, with the expectation of repayment from the policy's payout. This evolved into a complex, multi-billion dollar industry where large financial firms invest in the life expectancies of strangers.

personScott PagepersonGregcompanyJohn Hancock

The tape

3 quotes
The market that Frank Sarawsky stumbled into last year, this big complicated secondary market for life insurance, it started out as a very simple deal made in a desperate situation.
But then someone else will recognize a new way to make an even bigger buck by tweaking that technology.
So Scott realizes he could just make up a story that he'd be financially hurt if Greg died.
Heard on Planet Money — “You bet your life insurance, published Friday, August 14, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.05