A terminally ill man receives $430,000 after selling his $1.5 million life insurance policy to an investor under a life settlement agreement.
A man diagnosed with rare stage 4 lung cancer sold his $1.5 million life insurance policy for $430,000 in a life settlement transaction. The buyer assumes premium payments and will collect the death benefit upon his passing, while the seller received immediate cash.
The man, an auditor, purchased the policies before his diagnosis and later found a company willing to buy them. His wife relinquished beneficiary rights, enabling the sale. Life settlements typically factor in the insured’s life expectancy and policy value.
He plans to invest the $430,000, aiming to grow it beyond the $1.5 million his family would have received posthumously.