Mention Life Settlements and you’re bound to hear strong opinions, both positive and negative. The life settlement market has grown into a billion dollar industry in the last few years. If you're over 50 and own a term life insurance policy you no longer need, this could mean money in your pocket.
First, the UglEvery market has those who try to “game” the system. Many seniors have fallen prey to agents tempting them with an offer of free money. The senior is induced to purchase life insurance without a legitimate need for such coverage. The insured then waits two years so the policy becomes uncontestable, sells the policy, and shares the proceeds with the other parties to the transaction. This is called “stranger originated life insurance” (STOLI).
