The latest twist in the growing secondary market for life insurance policies is an innovative asset-backed lending strategy called life insurance premium finance.

There is a class of seniors who would like life insurance policies but acquiring a policy at that age can mean expensive premiums. However, because the secondary market in life insurance policies establishes a market and means for valuing policies it is possible for seniors to borrow the money to pay for the premiums and use the policy itself as the asset backing the loan.