Life Insurance Facts
Did you Know? Just like a home, a life insurance policy is an asset that can be sold. The legal basis for the secondary market in life insurance started in 1911 with the U.S. Supreme Court case of Grigsby v. Russell. With this case it was shown that life insurance had all the legal qualities of property which meant that life insurance could also be transferred in similar manner. Grigsby v. Russell set the rights that a policy owner could name the beneficiary, borrow against it, sell the policy and change the beneficiary
"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