Wall Street firms are waiting for people to die so they can get their life insurance money. And yes, it’s legal

The life insurance industry is often associated with providing financial support for family members after the policyholder's death. However, there is a secondary market for life insurance policies where Wall Street firms and investors buy these policies from individuals instead. This practice, known as a life settlement, arose during the AIDS epidemic in the 1980s and 1990s, when many people needed money due to the illness.

A pioneer in this field, Scott Page, helped those with AIDS sell their policies when they could no longer afford the premiums. Life settlements emerged as an option for people who are unable to pay premiums, are overinsured, have no heirs, or no longer require coverage. While most states regulate life settlements, not all transactions are, so it's crucial to research the firm and check for licensing.

When considering a life settlement, individuals should consult with tax professionals, assess their family's financial needs, explore other policy features, and consider affordable alternatives before making a decision.