Originally Posted by Big_Hitter
it's called reinsurance
Reinsurance is when a company wants to "share the risk". They then take out a policy on the policy they sold that may limit their losses...If they write $1 million and only want to risk paying $200k, they'll buy another policy from the likes of AIG or Travelers for the $800k additional. If you die, they only pay $200k...
I was talking of a company (or individual) who buys policies from individuals, continue to pay for the policy vs. you, and profiting if they kick the bucket...