The provider takes over all future premium payments and eventually collects the death benefit when the insured passes away.

When you sell your policy, the buyer (the provider) becomes the new owner and beneficiary.

Companies that buy existing life insurance policies—known as —offer policyholders a way to sell their coverage for a lump sum of cash. This transaction is typically used by seniors or those with chronic illnesses who no longer need their policy or can no longer afford the premiums. How the Process Works

While most settlements involve permanent policies (like whole or universal life), some term policies can be sold if they are convertible. Key Types of Buyers What You Should Know About Life Settlements | FINRA.org

You receive an immediate cash payment that is more than the policy’s cash surrender value but less than its total death benefit. Payouts typically range from 10% to 25% of the policy's face value.