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Turn Unneeded Policies Into Cash BY JAMES D. WARRING

WHEN INDIVIDUALS OR BUSINESSES HAVE UNNEEDED life insurance policies they have three options: continue paying the premiums until the insured’s death, surrender the policy for the cash value or find a third party to buy the policy in a life settlement transaction. The last alternative usually is the most attractive if the insured is over 65, has experienced a change in health and has a life expectancy of 2 to 12 years.

Psst! Wanna Buy a Used Life Insurance Policy?
Life Settlements: Where Life Insurance Meets the Capital Markets

The life settlement market has expanded in recent years from almost nothing in size to a significant, growing and controversial segment of the U.S. life industry. A life settlement can be generally defined as the purchase of an existing life insurance policy by a third party for investment purposes.

Our Take on the Secondary Market for Life Insurance
By Dafina Dunmore

Imagine a world where we had to sell our car back to the original dealer, or our house back to the developer, or even stocks to the original seller. This would be a world without secondary markets. It's the world that most life-insurance policyholders have faced historically. But the life settlement market is becoming increasingly fashionable as investors attempt to capitalize on what they deem to be a "mispriced" niche in the life insurance market.

Insurance: New lease on life

The secondary market in life-insurance policies is good for consumers... AFTER savings accounts and government bonds, life insurance may be the most respectable of investments. It was not always so.

Life Settlements: An Insurance Planning Tool
By Valerie Greenberg

Life settlements are a new insurance planning tool for older individuals in which a third party, preferably institutionally funded, purchases a senior’s existing life insurance policy for more than its cash surrender value (CSV). Life settlements are especially valuable when used for trustees.