John Jannarone:
Good morning, thank you for joining. Im John Jannarone, Editor-in-Chief
of IPO Edge, here today for you to meet Abacus Life. We have the CEO whos going to tell you all about the companys plans to go public, very imminently. In fact, that will formally happen about a week from now and then on the third, the
company will begin trading under its new ticker, ABL. For the moment, you can invest in this business by buying the SPAC, which it is merging with. Thats East Resources Acquisition Corp., which trades under ERES. Were going to talk a
little bit more about that momentarily.
Before we do, a bit about this business, this is fascinating stuff, the life insurance business, for those of you
who are not familiar and youre going to learn a little bit more today, is gigantic. This is a multi-trillion dollar market, and what this company does is provide liquidity to people who dont necessarily need those policies in their
entirety or at all anymore, and they give them cash instead. Were going to talk about the economics of that business model and a lot more. Id like to remind everyone that you can ask questions. We encourage that. Jays happy to
answer them. Well get to those in the last quarter of the event or so. The most easy way to do that is to submit them right there in the Zoom portal. Alternatively, shoot an email to editor@ipo-edge.com
and we will get to them later on in the show. With that, Im very happy to introduce todays guest, Jay Jackson. Jay, thanks for joining.
Jay
Jackson:
Yeah, thank you very much, John. Excited.
John
Jannarone:
Now, Jay, tell me, we want to hear about the business model, but for those who are uninitiated, lets just step back, you and I spoke
yesterday, and tell us about how the life insurance industry works. A lot of people maybe only know it from TV commercials for term life, and theyll tell you; were only $30 a month and youre 55, youll get da, da, da, da, da.
But therere also full life policies and theres more. So tell us how all this works.
Jay Jackson:
Sure, thank you. And whats amazing about insurance is, is that most of us are afraid to talk about it or we dont want to talk about it. And many
times youre like, Oh man, thats the insurance person in the corner of the room there, and you try to avoid the conversation. And its really a fascinating industry and an incredibly growing business, particularly as
weve gone through things like a pandemic over the last year and a half, its really moved to the forefront of a lot of peoples minds. And traditionally, when you thought about life insurance, it depends on what age you are. So as
you highlighted, when youre 35 years old, you look at life insurance much differently than someone whos 65 years old. But it also costs more, right, to buy insurance when youre 65 versus youre 35, which makes sense.
You see the commercials that, Hey, 35 bucks a month, or even at age 50, you might see $80 a month, but it goes up every time. So those term
policies when youre younger make a lot of sense, 10-year policies, but they go away in 10 years. What happens when youre 65 and you know the next 10-year
policy is going to go away at age 75? Right? You start to change your mindset and what your mindset is going, Well, gosh, I want something more permanent. And thats where things like whole life and universal life step in, and what
that means is it doesnt have a term, meaning that, generally, its designed to cover you for the rest of your life. And ultimately what happens is, is that when youre 65, you start to buy more of those permanent types of policies,
because when youre 75 or 80, you cant get a term policy.
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