Man with rare cancer sells his $1.5 million life insurance for $430,000, thinks he can turn a profit before he dies

Frank, an auditor for a major railroad, recently sold his $1.5 million life insurance policies for $430,000. The policies were worth combined $1.5 million and had been bought by Frank before he was diagnosed with a rare stage 4 lung cancer. He chose to sell the policies because they would have paid out to his family after his death, but he wanted the money now.

The buyer of his policies is Evergreen Settlements, a company that specializes in life settlements. These are transactions where policyholders sell their policies to investors, who take over the premiums and collect the death benefit when the policyholder dies. The amount someone can sell their policy for is determined by their life expectancy and the size of the policy.

In Frank's case, the winning offer came from Coventry, who paid him $470,000 after deducting their broker's commission of $40,000. Frank plans to invest the $430,000 to potentially exceed the $1.5 million his family would have received, aiming for a 12% return annually. However, he hasn't fully invested the money yet and has used some of it for personal expenses such as a 20-year-old BMW and a trip to Costa Rica.