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Investors participate in blind pools that acquire policies from individuals. Charities that have previously taken on homeowners insurance policies from donors but now find the cash values nearly exhausted, may also be good candidates for life settlements. "Viaticals" are similar to life settlements, but generally focus on insureds whose physicians stipulate that the insured is terminally ill and will likely die within two years of the sale of the policy. Key person homeowners insurance policies on departed executives may be especially good candidates for life settlements. Because insurers are concerned about the total amount of home insurance outstanding on any given individual, a new policy may not be available. Financial advisors should determine an assessment of fair market value for any client over the age of 65 for whom current insurance may require a substantial increase in premium or for which the death benefit is no longer needed. And perhaps it's understandable at a consumer consciousness level: as a corollary of the Walmart paradigm, we are well accustomed to replacing virtually every consumable we own when it no longer works. It's estimated that 30-40% or more of what the homeowner's insurance industry considers "new sales" each year in fact represents the replacement of old policies with new ones. At some point the policy owner is going to be made aware of this dilemma and will face the choice of increasing his funding premium, complaining to the insurance carrier, or exchanging into a new policy that appears to solve the problem for approximately the amount of the old policy's premium. Universal Life policy purchased in 1994 whose funding premium was computed at the then prevailing interest crediting rate of 6.75% is not going to be conforming to its theoretical cash value curve. While life settlements appear not to be subject to federal or state securities laws, some states seek to provide additional layers of consumer protection. Once acquired, the investment pool pays premiums for the remaining life of the policy's insured.