Gene Simmons Enters the LIfe Insurance Business

Gene Simmons, famous rocker from the band Kiss, has joined a financial group that offers life insurance policies starting at $10 million to people worth at least $20 million. Premiums for the policies are financed with a loan that is repayed along the way, with accumulated savings from the policy, or from policy proceeds at death. 

Critics of loan-financed life insurance policies cite to risks such as interest rates on the loan rising higher than the interest rate on the policy, higher-than-expected bank costs, and tightened collateral requirements.  

Those risks aside, Leslie Schism & Laura Saunders in Rock by Night, Life Insurance by Day, WSJ, April 3. 2010, point out an additional consideration that may arise when deciding whether to do business with a financial group that includes Gene Simmons:

You might buy car insurance from a gecko or a cave man, but would you consider buying life insurance from a blood-spitting hellion in leather pants?

See Leslie Schism & Laura Saunders in  Rock by Night, Life Insurance by Day, WSJ, April 3. 2010.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this to my attention.