By Life Quotes, Inc. Staff

It’s called a “life settlement” and it’s one way seniors can cash in on their life insurance policies.

Those who no longer want to pay premiums or have any need for the coverage are often able to demand higher prices when selling their life insurance to an investor rather than their insurance company. Policies sold by those approaching the end of their lives are particularly valuable, according to a recent report by NBC.

An investor who buys a policy for half of its value can receive a full return on their purchase if the policyholder dies the next day, according to the report. Because life insurance is built up over one’s lifetime, this return can account for a quick fortune.

Its value decreases with every day the policyholder lives after selling his or her policy. Financial adviser Dana Barfield critiqued the kind of mentality this creates, where investors eagerly anticipate their policyholders’ deaths.

“It should not [be] legal to sell an insurance policy to a third party with a conflict of interest,” Barfield tells NBC.

Seniors struggling to stay current on their life insurance premiums may also choose non-forfeiture options, which allow them to forgo cash savings in order to leave behind death benefits. They may also try to reinstate a policy after it lapses.

This article was originally published by Life Quotes, Inc.