The life insurance policy holder may sell their policy to a "Viatical settlement provider" to receive a percentage of the policy's face value.
Further Explanation:
There are numerous companies in the United States that are licensed viatical settlement providers. When the policyholder sells to these companies they receive a certain percentage of the payout of the life insurance that would be paid upon their death.
The viatical settlement provider will continue to pay all of the premiums that is due on the insurance and upon the death of the policyholder the company that bought the policy will get all death benefits that are owed.
Many people who use this option to get the money now instead of leaving it for their children are the ones who are facing a terminal illness or are having financial difficulties.
I believe the answer they are looking for is a 70year old would be covered by medicare as oppose to a 55year old with disablity would be covered by medicaid
