A secondary market for life insurance using blockchain

Many policyholders are unaware that they can sell their life policies. Depending on location, secondary markets currently are at best opaque and obscure and at worst non-existent. Singapore-based startup fidentiaX plans to change that.

The demand

Seniors often wish to exit their life insurance commitments for various reasons. They may need the money for care or medical expenses, they may no longer be able to afford the premiums, or perhaps the beneficiary doesn’t need the money. In the US, 250,000 policies a year with a face value of more than $57 billion are lapsed and surrendered back to life carriers. The average face value of a surrendered policy is approximately $225,000 as of 2010 (Source: Welcome Funds). Another study showed that only 50% of seniors are aware they can sell their policies.

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