In a STOLI arrangement, what is the primary intent of the investor?

In a STOLI (Stranger-Originated Life Insurance) arrangement, the primary intent of the investor is indeed to profit from the death benefit when the insured dies. This setup involves an investor who purchases a life insurance policy on an individual, often someone who may not have a direct insurable interest in the policyholder's life. Upon the death of the insured, the investor stands to receive the death benefit, which may significantly exceed the total premiums paid over time.

This arrangement is typically motivated by the financial gain that can be realized when the insured passes away, aligning the investor's profit motives with the life insurance policy. The focus here is on the monetary return rather than assisting individuals in obtaining insurance, collecting premiums, or establishing a mutual insurance company, which do not encapsulate the primary goal of a STOLI transaction.