Life Insurance Basics
What is the life insurance secondary market?
The life insurance secondary market is the market where existing life insurance policies are bought and sold. Viatical settlements and life settlements are the two main types of secondary market transactions. The secondary market provides policyholders with an alternative to surrendering their policies for the cash surrender value.
Key Points
- Secondary market: market where existing life insurance policies are bought and sold
- Viatical settlements: for terminally ill policyholders
- Life settlements: for non-terminally ill policyholders
- Alternative to surrendering policy for cash surrender value
- An independent agent can help you evaluate secondary market options