The life - settlement industry says it's providing a better alternative to seniors who often let policies lapse or continue paying premiums they can't afford. (kiplinger.com)
This strategy only works if premiums are paid consistently; permanent life insurance policies lapse if the cash value gets too low, which leaves the policyholder without coverage. (investopedia.com)
There is a risk of policy lapse if the premiums are not paid, which would result in the loans being taxed. (abramsinc.com)