Is nothing sacred?

Sue Daugherty
Mar 23, 2010


Who would have thought that someone would want to find a way to financially exploit the ballooning demographic of people ages 65 to 85?  Well, they have, and it’s very creepy.

The newest devious practice playing out today is what the Ohio Department of Insurance calls STOLI, which stands for, "Stranger/Investor Originated Life Insurance."

How STOLI works

According to the Ohio Department of Insurance, STOLI starts when a stranger/investor finds people ages 65 to 85 and offers them a cash incentive to agree to having a life insurance policy taken out on their behalf. The stranger/investor then chooses the beneficiary. Then, upon their deaths, the "investor" cashes in.

The problem isn't simply the ethics and morality of such behavior. It's the risk that life insurance may no longer be affordable for legitimate consumers to purchase—the very people life insurance was intended to serve.

Think about it. One policy is paid on one person. But when 10 people buy a life insurance policy on the same person, 10 people collect upon that person’s death. Payouts increase and revenue from life insurance premiums no longer supports the price of a life insurance policy. This fraudulent activity results in higher premiums, making insurance out of reach for some.

How to learn more

For more information about STOLI, how it works and the consequences it has for the future, come to the public forum from 2-4 p.m. Aug. 19 at the Erie County Office Building, 2900 Columbus Ave., next to the Erie County Fairgrounds. Attorney Bob Smith, with the Ohio Department of Insurance Fraud Division, will be making a presentation.

Seating is limited to 50, and an audience size of 15 or more is required to justify the travel by the speaker.

Call Serving Our Seniors at 419-624-1856 to RSVP.



you had to have an "insurable interest" in the person that you perhaps bought a life insurance policy on. What happened to that???? Had to be married to the person or their Dad or Mom or something like that.


and how long has this type of thing been going on and your just now "writting" about! a little slow


Not a good topic Sue.


Why are you criticizing Sue? She is trying to keep us informed, and all you can say is "why did you wait so long" and "not a good topic"? What is wrong with you people? I think it is an eye opener. Some of our seniors may fall for this, given the way money is tight and they could use some extra cash. I say thank you Sue, for all you do. Linda


Seems like a legitimate, legal investment strategy. There is a way to cheat these "creepy" investors, commit suicide.

I don't understand, do you mean that if there are 10 people involved, they all get paid the same dollar amount as a single person would? Count me in!

Don't blame the investors, blame the insurance companies and legislators who allow this to be legal.


So? The seniors are getting paid. Nobody's twisting their arms to agree.


I really don't see what the problem is.


hello where have you been to; like i said this didn't start yesterday and she is just now reporting? like they say i guess "a day late and a dollar short" what happened did this happen to someone in her family?

Common Sense


Sue is not telling us that this is a "new story"; she is just telling us that this is one of the many scams that our society is experiencing as the number of Americans who are aging well beyond their ancestors. Her job is not to jump on every element as it happens. Her work portrayed here is to make the general public, and more specifically, our seniors and their caregivers what they should look out for to maintain maximum health both physically, mentally, emotionally, spiritually, and financially. If you do not like what she has written, move on. There is no need to criticize someone for providing this service

Rick Studer

Personally I hate the insurance companies. All insurance companies are rightwing owned and endorsed ponzi schemes. They not only thrive off the misery and suffering of others, they pursue it.

Buying life insurance on unknown persons is just another example of the ruthless nature of this business. When someone has a financial interest in another's death we are only courting mischief.

I'm sure the companies will tell you your information is confidential, just like your credit information. How many times a year do you read about personal information being breeched by unscrupulous hackers and thieves?

I may be wrong on this point but I believe this practice started with "investors" buying the insurance policies, cents on the dollar, of dieing AIDS patients. In a particular tasty twist of irony some of these patients who had negotiated monthly payments with the buzzards were able to live for years because of the advances in AIDS treatments.

In silent protest of these vampires I always try to light up one of my favorite Camel cigarettes whenever I'm around an insurance salesman with hopes of contributing to their untimely death. So far, I've never had a leech walk away from the talking the deal to avoid the smoke...


I really don't see what the problem is. The seniors are getting something out of this too. Unless the people are trying to bump them off to get the cash quicker, what's the big deal?


TO THE POST WRITTEN BELOW: You should go to the forum on Tues. 8/19 and find out for yourself what the "big deal" is.