And one final note, even term life insurance policies can be sold. So, if you know a business owner with key-man life insurance, or someone else with a term policy, do NOT allow them to let the policy lapse without considering a life settlement.
"There are clear financial benefits to a life settlement. Life settlements offer policy owners an immediate and significant lump sum payment and relieve them from the burden of paying future premiums".
Why do people sell their life insurance policies?
1. Funding long term care
2. Maintaining lifestyle
3. Making gifts to heirs or charities
4. Purchasing investments or other insurance products
5. A change in policy type or coverage amount is necessary to address current objectives
6. Achieving other financial objectives