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Life insurance policies are purchased by the insurers in the hope that they will help them weather the storms during all the tough phases of life. With changes like increase in average life expectancy and drastic decrease in the morbidity rate, there has been exploitation of seniors by the insurance firms. Life insurance policies held by seniors can be sold as life settlement policies to a third party in order unlock the cash value of the policy. Once the policy has been purchased, premium payments have to be done by the buyer that in turns becomes the beneficiary of the policy. Life settlement policy is similar to viatical settlement policy that was launched for the terminally ill AIDS patients in early 90’s. The difference between the two is that the life settlement policy holder should not be ill or suffer from any terminal disease. In cases where the insured is expected to live less than two years life settlement policies work in similar way to viatical settlement policy.