Your Policy Could Be Worth A Fortune Today
The Secondary Market for Life Insurance
The secondary market for life insurance, also known as a life settlement market, allows policyholders to sell their policies to investors. These investors continue to pay the premiums and receive the death benefit when the insured passes away. The sale price is typically higher than the policy's cash surrender value but lower than the death benefit amount. This option is particularly appealing to seniors who no longer need life insurance for estate planning purposes or who find the premiums burdensome.
According to the Life Insurance Settlement Association, the life settlement market has seen significant growth, with more policyholders recognizing the potential to monetize their policies1. This growth is driven by an aging population seeking ways to maximize their financial resources during retirement.