Life insurance was originally only purchased to protect loved against financial hardship if they were to be a death in the family. Whilst these policies did what they said on the tin, they were not the right match for everyone. Situations in life can change very quickly which can impact on a person’s finances, and render previously purchased financial products inadequate.

For example someone who purchased a life insurance policy and then became terminal ill may need the policy money in order to help them survive whilst they are alive. On the hand people may outlive their life insurance policies, meaning that their family never actually sees the money they have been paying over the years.

Because these types of situations started to become more common life insurance companies have taken heed and made changes to some policies to allow them to be more flexible for the customer. 

Examples of these are “viatical settlements” and “life settlements” which enable customers to sell their life insurance under certain criteria, and make life that little bit easier.