“Nothing is more certain than death and taxes”
When people are reaching the end of their life due to age or terminal illness they might need to cash in their policy to be able to live out their remaining days with a little extra cash. Policy owners are able to sell their policy on the open market privately or through broker to an investor. A little morbid for sure but this helps people who really think time is more valuable than money.
Only 15% of people actually use the death benefit portion as most reach the end game and let premiums lapse.
An amazing peer-investor paper on life settlement investing: https://drive.google.com/open?id=1laPr-mWWHSS6vspZ6e7wnJ4IFn-Y14A5
Academic article from the Wharton School of business.