Your parents and other elderly relatives may have life insurance policies they no longer need. Moreover, the premiums they keep paying might restrict what they can spend on other items, in retirement.
If such people are over 70 years old, with some kind of medical condition, they may be able to sell their policies. Many investors are willing to buy such policies and pay the ongoing premiums, anticipating a payoff when the insured individual dies.
In some cases, policyholders will receive much more from such third-parties than they would by cashing in the policy.
An experienced insurance agent can shop the market to get the best price. For the seller’s comfort, it’s best to sell to a bank, another insurance company, or a hedge fund. Such institutional investors are unlikely to take any steps that would speed up the collection of the policy’s proceeds.
