In the past few years, insurance firms, financial advisors and brokers have taken their efforts to the peak to interest the consumers. Keeping the benefits of the senior consumers in mind, an unexpected yet amazing segment has been introduced which is providing a viable option for seniors who don’t need their insurance policy any longer. This segment is termed as ‘Senior life settlement.’ Are you acquainted to this term? If not, you will be, soon.
Senior life settlement refers to the financial transaction between the owner of life insurance policy and the investor. This transaction is done with the help of a broker who acts as an intermediate between the buyer and the seller. With the transaction, the original policy owner receives the cash payment (usually lesser than the death benefit), and the buyer becomes the new owner and beneficiary of the insurance policy who continues paying for all future premiums and receives death benefit upon the death of insured policy seller. In this way, the seller is relieved of the monthly premium payments, and the buyer makes a profit from the death benefit. In other words, it is a symbiotic transaction that benefits both parties. Isn’t it cool when no one is losing but making a profit? You wouldn’t want to let go of such a fair deal. Would you?
The life settlement industry has started to work at a faster pace while attracting a large sum of the population, especially seniors. As it has become easier for them to liquidate their unwanted insurance policies, a gradual increase in consumer education and legal regulations are registered. In the U.S., 90% of the population is getting advantage from the life settlement legislation. Life Policy Dynamics Settlement Market Analysis (LPDSMA) assumes that about 24,000 senior policyholders have been getting benefit from the life settlement market for the past 10 years. A survey was conducted which claimed that older Americans are more concerned about running out of money than passing away. Isn’t it strange? Well, nothing is funny if it’s about ‘MONEY.’
Considering senior life settlement is a must, before making any move, it is important to go through all the terms and conditions that life settlements offer. You may be suspicious about selling your life insurance policy but think about the time when you purchased it. You would have hoped to use that money later in life or leave it to your heirs. Amidst all this, you would have thought about getting benefits. Oh, come on. Every human being does. While going for a senior life settlement, you need to get an offer that is fair enough and the sum somewhat greater than the insurance policy’s surrender value. You don’t need to settle for less. It’s about money, of course.
If you do care about the future of yourself and your family, you shouldn’t even wait for things to happen. The senior life settlement can be the coolest way to avoid running out of cash. Money can’t necessarily bring happiness but being able to save money out of your unwanted insurance policy is bliss.