Due to a large inheritance, a policyowner no longer needs a life insurance policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called a

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10-03-2022
Law

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Due to a large inheritance, a policyowner no longer needs a life insurance policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called a

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azikennamdi azikennamdi · Answer 1 · 2022-03-23T10:17:26+01:00

Due to a large inheritance, a Life Insurance policy owner no longer requires the policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called a Life Settlement.

What is the Purpose of a Life Settlement Contract?

The Life Settlement Contract is simply a contract that transfers the insurance cover afforded by the Life Insurance Policy form one person to another.

The life assured of the new holder of the policyholder becomes eligible to receive the benefits of the policy when the insured dies while the policyholder takes responsibility for payment of premiums.

Learn more about Life Settlement at:
https://brainly.com/question/570009