In a deal which is probably worthy of a Matt Levine column, Rakuten is soliciting all of their gold card++ customers to become beneficiaries of a Rakuten-funded insurance policy. The deal: Free to you. Rakuten pays premium. 5万円 ($500) if you are diagnosed with cancer this year
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You are probably wondering “What could that optimization be?” and I’m betting the answer is “Move income from now into the future by expensing the policies today and getting cash value and claim income smeared over 12~18 months.”
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I'd bet it's the health rating information, as an input into their credit scoring function. They may not be able to get it without having direct interest, which buying the life insurance gets them.
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The only health question they ask to issue is “Have you ever had cancer?” so that seems really unlikely to me.
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This vaguely reminds me of the "scandal" where companies were taking out life insurance policies on employees (https://dealbook.nytimes.com/2014/06/22/an-employee-dies-and-the-company-collects-the-insurance/ …) which was indeed a tax optimization.
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