In Investor-Originated Life Insurance (IOLI), who benefits financially in this arrangement?

• A. The investor
• B. The insured
• C. The insurer
• D. The policy's beneficiary

Answer: (A)

In Investor-Originated Life Insurance, the investor controls the policy, pays the premiums, and is the beneficiary. This means the investor stands to receive the death benefit when the insured dies. The insured is simply the life being covered, not the one who profits from the policy's payout, and the insurer is the company issuing the policy. So the financial gain from this arrangement goes to the investor, making them the best answer.