Has Anyone Sold Their Life Insurance?

[Bryan Barnfellow]

Seniors Beware: What You Should Know About Life Settlements | FINRA.org

From the above article: "The amount you will receive in the secondary market depends on a range of factors, including your age, health and the terms and conditions of your policy—but it is generally more than the policy's cash surrender value and less than the net death benefit."

So, for once (older) age and (bad) health works for you!

-BB

 

[Chuckanut]

IIRC, many viaticals were sold to help Aids victims get some $$ to carry them through their last few years. However, AIDS treatments advanced at a quicker than expected pace and a lot of the buyers had to wait decades to finally collect. Personally, I never liked the idea of an investment that was directly tied to the death of a specific individual.

 

[brewer12345]

Life settlements are a thing and some of the states have even licensed agents to conduct them, similar to how they license agents to sell insurance in the first place. The buyers in this market will buy whole life, universal and term policies, but the last has to have a valid coercion option or guaranteed renewal. In general, the market (last I heard) was for people in their 70s, preferably in poor health. Personally, I find the idea of someone profiting off my death if it happens sooner rather distasteful, so I would be very reluctant to even consider selling a policy.

 

[Taxman59]

Had clients with policies that we tried to sell for them. The value of the policy isn't just the CSV, but also includes the buyer's estimate of the insured's life expectancy. A term policy can have great value if the insured is expected to pass in a relatively short time. Buying one policy makes no sense, but buying a basket of policies can be a good investment if you do a good job in the "underwriting" of the sellers.

 

[mickeyd]

Don't forget that this thing has to pass through many hands before they make you an offer. Each one of those hands need to be paid before the policyholder does.