What Do Bankruptcy Trustees Need to Know About the Evolving Secondary Market for Sales of Life Insurance Policies?
Because it has been traditionally considered an illiquid financial asset, a debtor’s life insurance policy typically receives little attention from many bankruptcy trustees. Due to an evolving secondary market for life insurance over the past several years, however, bankruptcy trustees may now be able to unlock the value of a life insurance policy for the benefit of creditors through a life settlement transaction, according to specialty finance company J.G. Wentworth.
