that offer has a terrible moral hazard attached to it. it's bad enough if you've got some rotten kids who are after your insurance, now you've introduced completely random strangers who have the potential to benefit from your demise.
i took a risk mgmt course once where the professor mentioned life insr schemes in which a company would pay you the present value of a life insr policy in exchange for the death benefit. it differs from borrowing from the insr company against the policy because these shops were usually run by nefarious characters operating outside the law. how you calculate the present value depends on the estimation of how long the policyholder is going to live and as we all know now, people began living longer and longer so these operations began losing money. not surprisingly, those who borrowed from these companies started succumbing to completely unforseen accidents.
