Can you sell your life insurance policy?

| March 4, 2019

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Older Americans looking to stretch their financial reserves through their golden years might find help from a surprising resource — their own deaths. Or more specifically, the sale of life insurance policies to investors hoping to profit from bets on when original policyholders die. Life insurance policies generally pay someone else — a beneficiary — upon the death of the insured person, but a newly-resurgent investment category has created an opportunity for policyholders to benefit from life insurance while they are still living. The sale of a life insurance policy to a third party investor is are known as a “life settlement.” What is a life settlement? The idea sounds straightforward enough: Investors buy others’ life insurance policies, hoping for big payouts when the insured persons pass away. Meanwhile, the original policyholder gets cash for health expenses, or fun, or simply relief from premium payments. The main risk for investors is if the original policyholders outlive their life expectancies and they pay premiums longer than they anticipated.

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HDI Global Insurance Company

HDI Global Insurance Company is a commercial property and casualty insurer headquartered in Chicago, IL and licensed in all 50 states, Washington D.C. and Puerto Rico. The company provides commercial insurance solutions to worldwide clients of HDI Global SE, a Talanx Group company, as well as national and international commercial property & casualty insurance programs for U.S. domiciled corporations.

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