Horrified, Robles says he thought constantly about God. But his crisis was practical as well as existential. Over the next year and a half, surgeons operated on his brain three times, excising as much of the cancer as they safely could. The side effects of the operations left Robles barely able to walk and unable to speak more than a word or two at a time. He shuttered the collection agency. His wife left him, and Robles, needing daily help, squeezed into his mother’s Chihuahua-filled apartment. The medical bills were mounting, and Robles was worried: though he believed God would provide for him in the afterlife, what he desperately needed until then was money.
Ron Escobar, a close friend of Robles’s, went to Carole Fiedler, an insurance expert, for help. Fiedler saw that there was no vacation home or Google stock to unload. But Robles did have a life-insurance policy for half a million dollars. Life insurance is designed to benefit the living, a spouse or heirs, not those who perish. But Fiedler, who owns a firm called Innovative Settlements, knew that a life-insurance policy is an asset that can be resold to a friend or stranger just as a car, boat or house can. In a transaction known as a viatical settlement (for terminally ill patients) or a life settlement (for everyone else), the person selling his insurance gets an immediate cash payment. The buyer, in exchange, is named as the beneficiary and pays the premiums until the insured person dies. Life no longer afforded Robles a traditional way to make money, but to the right investor, Fiedler advised, his imminent death was worth a great deal.
Selling your life and selling a house have more in common than you’d think. The seller puts a listing on the market. Prospective buyers do research and get inspections; there are offers and counteroffers until the seller accepts a bid. The seller doesn’t literally peddle his own life, of course, but his life-insurance policy. The distinction is in many ways moot, however, as the sales value is inextricably linked to a cold-eyed estimation of how much longer the seller has to live. In the case of Robles’s policy, a life-settlement company in Georgia, Habersham Funding, expressed interest. Escobar shipped off six boxes’ worth of Robles’s medical records, thousands of pages in all, to Habersham. The firm, in turn, analyzed the records and also had them scrutinized by an external company specializing in life-expectancy analysis. Fiedler’s recollection is that the reports confirmed the grim prognosis and that Robles had less than two years left to live.
Fiedler, for her part, tried to convince Habersham that Robles was knocking on death’s door. The sooner Robles died, the fewer premiums the buyer would have to pay and the greater the potential value of his policy. “I would never lie, but my job is to make my clients look as bad as possible,” Fiedler says. Habersham opened its bidding at $250,000. “You’ve got to give us more money than that,” Fiedler recalls yelling during a phone negotiation. “This guy is really sick!” The company bumped its offer to $305,000. Fiedler accepted, and the stakes were set. The buyer’s profit would be the $500,000 insurance payout upon Robles’s death minus the $305,000 settlement and whatever the company had paid in premiums. Escobar, meanwhile, was hoping that his friend could beat the grim odds. “I told Ruben, ‘Look, they’re betting that you’re going to die,’ ” Escobar says. “ ‘You’re betting that you’ll live.’ ”
by James Vlahos, NY Times | Read more:
hoto illustration by Katherine Wolkoff. Models: COACD; FunnyFace Today
