A recent article in the Wall Street Journal was entitled: “Happy 100th Birthday! There Goes Your Life Insurance.” The article discussed how some universal life policies do not pay a death benefit if the insured lives past his or her 100th birthday:
Life insurance has long been used as a tool for estate planning. It has the unique ability to satisfy a wide range of objectives including covering outstanding debt obligations, paying for burial expenses, providing for surviving family members, and offering liquidity to cover estate taxes.
A life insurance policy is one of the most valuable assets many Americans will ever own. Unfortunately, far too many consumers are unaware they have the right to sell a life insurance policy through what is known as a life settlement transaction. As a result, billions of dollars worth of life insurance is “irrationally lapsed” each year.