Firstly, Many seniors choose to sell their life insurance policies for cash. They often use the money to pay for long-term care or other final expenses. When someone sells their policy to an investor or another person for cash, this is called a life settlement.

Example:
Jane is 85 years old. She has a $1,000,000 life insurance policy. She now has serious health problems and needs nursing care. Instead of keeping the policy and paying the premiums, Jane sells it. She uses the money to cover her care costs.