Originally Posted by rickygips

I don’t think life settlement makes any sense, if you have a life insurance is it still possible to apply for a life settlement?
People are insured up to their total net worth.
If someone is worth let's say $2.5million and they currently have a $1.5million life insurance policy, that would mean they have ($2.5million -$1.5mmillion =
$1million left of "excess insurability").
So this person could settle their $1.5million policy if they wanted, or they would have the option of taking out another policy for $1million (which later after the 2 year contestability period, they would have the option to settle).
So the answer to your question is YES because you need life insurance in order to settle. Life insurance acts as an investment vehicle for a life settlement.