Ex-multimillionaire's life insurance policy goes on the market

Bankrupt former property developer Pat Rippin has put his life insurance policy up for sale, which will yield the buyer $1 million at some stage as long as they keep up the premium payments.

And although Mr Rippin, 69, an '80s high flier known for throwing lavish parties, has had recent heart attacks he warns he's not ready to fall off his perch anytime soon.

"Some people say that I look a bit bloody grey but others say I look bloody good so we'll have to wait and see," he told TV3 News tonight.

The one-time multimillionaire head of publicly listed Markham Developments, who starred in The Family reality TV series about himself and his family, was bankrupted in 2008 over a $250,000 debt.

When he could not afford the premiums for his life policy it passed to a business associate, who also then ran into financial strife, and liquidators have now put it up for tender.

Lawyer Anthony Law, of Kirkland Enright which is acting for the liquidators, told the National Business Review they hoped someone would pay close to the policy's October surrender value of $315,000.

The successful tenderer would then need to continue premium payments of at least $2280 a month to pick up $1 million when Mr Rippin died.

"You've just got to wait till you fall of the perch and then the person can get the policy money," Mr Rippin said.

Publicly selling a life policy is rare in New Zealand, but common in other countries such as the United States where "viatical investment companies" find investors for policies.

- NZPA