Where does the value come from? I can’t sell my car insurance policy so how is life insurance different?
Who is buying them and why?
UK based if it makes a difference
In: 5
It might be different in the UK, but in the US, there are “term life” policies and “whole life” policies. Term life is like car insurance, where it’s basically a subscription service that has no value to another person. If you don’t pay the premium for a month, it’s cancelled and that’s it. With whole life, it’s an investment (a pretty shitty one, in general), but it has a cash value associated with it (most of the money you’ve put into it), and you can sell it if you want to or possibly use it as collateral for a loan, as it is a “marketable security”, AKA something that can be sold for cash relatively easily.
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