life settlement
Definition
The act of a life insurance policyholder selling his/her policy to an outside party for the fair market value of it. The outside party becomes the primary beneficiary of the policy and collects the funds after the seller dies. In some cases the market value of the policy exceeds the face value and that's why some people choose to sell the policy and reinvest the funds.
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Top Investor Traps (4 of 10)Life Settlements. State securities regulators long have been concerned about life settlements, or viaticals, and the rising popularity of these products among investors has prompted a recent congressi ... Read more
