Seems like a stall tactic or milking extra bucks out of current members.
I wonder where this bank is going to get 160K(350k policies) = $56 Billion to pay for these policies. That's more capital that most of the top 10 banks in the world has. You ought to read this:
Four Shady Reverse Pension Plans Hits the Streets | One World Income
And if you missed it, read the Reverse Pension Plan - Myth or Reality post on the same blog as well.