It is not uncommon for a senior citizen to consider trading his/her equity in a life insurance policy, or term life policies for a lump sum payment.

Even though the reasons why life insurance policies are being "sold" or being "discounted" so frequently are many, some of the most common reasons include: need to have access to money due to unexpected or unforeseen life changes, health issues, need to support a loved one through a personal financial crisis, or simply a desire to be able to put one's own money to good use.

Some of the other reasons why people sell off their life insurance policies include a need for additional funds after retirement, prohibitively high cost of premiums, significant changes occurring in one's financial estate, death of the beneficiary, to accomodate higher cost of living over time, or simply due to a desire to bring about a life style change.