Life Insurance Policy Put Options Explained

A life insurance Policy Put Option, also known as a ("PPO") or "put", is something purchased by a life insurance policy owner guaranteeing them the right to sell the policy at a predetermined date and price.

If a policy owner is unsure they will need their policy in the future or contemplating the future sale of their policy, a Policy Put Option enables them to lock in an exit price for their life insurance asset and reduce market volatility risk.

What Are Life Insurance Policy Put Options?

A Policy Put Option, ("PPO") allows a life insurance policy owner to purchase the option or right to sell their life insurance policy at a predetermined price, on a predetermined date.