If X sells their unwanted life insurance policy, how much might they receive if it has a face value of $1,000,000?

When an individual sells their unwanted life insurance policy, the amount they receive is typically influenced by various factors, including the policy's face value, the insured's age and health status, and the policy's terms.

In the scenario presented, with a face value of $1,000,000, it's important to recognize that policyholders generally do not receive the full face value when selling a policy in the secondary market. The payout from selling a life insurance policy—often called a life settlement—usually falls between a lower limit and the face value, reflecting both the present value of the death benefit and the risk the purchaser assumes.

Receiving an amount that is more than $200,000 but less than $1,000,000 is reasonable, as this range reflects the common outcome for such transactions. The exact amount depends on the specific circumstances and details surrounding the policy, including the current market conditions and demands for similar policies. This range allows for enough variability in the offer based on the factors mentioned, making it a plausible outcome that aligns with typical market behavior for unwanted life insurance policies.