If I sold my life insurance policy. . . .

There’s a growing market for life insurance policies that are no longer needed — it’s called the life settlement market. Sellers of life insurance policies are generally over age 65 with health conditions that shorten their life expectancy.

Selling a life insurance policy can be an attractive option for someone who no longer wants or needs his permanent life insurance policy and who would like to get some cash.

Sometimes these life insurance policies are bundled as securities and sold to investors. But now the major life insurance trade group, the American Council for Life Insurers, is urging policymakers to ban the securitization of life settlements. The group says these securities are too risky to investors and expose sellers (the seniors) to fraud.

I’m no investment expert, but I wouldn’t dream of buying securities based on life insurance policies. I personally don’t want to profit from others’ deaths.

On the other hand, if I were selling my policy, I would want it to be bundled with others’ policies and sold off. I wouldn’t want to have a small number of people interested in my fast demise — I’d rather spread that out among a large number of people who don’t know who I am.