A life insurance policyholder may no longer need life insurance. Such

A life insurance policyholder may no longer need life insurance. Such a policyholder may sell the policy to a third party for more than its cash value.

The purchaser becomes the new beneficiary and is responsible for subsequent premium payments. Such a financial transaction is called a(n)
A) collateral assignment.
B) accelerated death benefits rider.
C) absolute assignment.
D) life settlement.

ANSWER

Answer: D