Is your greatest fear outliving your retirement nest egg?
If you are like many other retired seniors, chances are you use the Internet to check the status of your retirement portfolio on a frequent basis. Like other retirees, one of your greatest fears is outliving your retirement savings.
As you examine your financial assets and calculate whether the “4% rule” is a realistic return-on-investment in today’s volatile stock market, you and your financial advisor may be pondering a variety of financial options that will enable you to live a financially secure, independent lifestyle well into your 90s and beyond.
According to the Centers for Disease Control and Prevention, thousands of Americans are living beyond 100, thanks to advances in medicine. As of 2014, more than 72,000 Americans were 100 years or older — a 44% increase since 2000.
While longevity in retirement is good news, it also creates a new set of challenges relating to methods to finance a comfortable lifestyle for the next 30 to 40 years.
Are life insurance premiums draining your savings account?
In the aftermath of the 2007 economic crisis, many seniors saw the value of their retirement investments plummet. To compound the problem, many retirees have been notified by life insurance carriers that the cost of their life insurance premiums has risen substantially – some as high as 200%.
While the purchase of large life insurance policies may have made sense many years ago to provide financial security for loved ones, many seniors are now burdened by expensive premium payments for policies they no longer want or policies that have outlived their original purpose.
Did you know that many seniors – just like you – have turned to life settlements to help fund retirement or pay for medical care?
Fortunately, your online research brought you to our website. Trust Life Settlements offers seniors like you a financial solution that may not have been available during your parents’ generation.
For nearly 20 years, the secondary market for life insurance – also known as life settlements or senior settlements – have enabled thousands of seniors to optimize and monetize their life insurance policies for an amount far greater than the policies’ cash surrender values.
According to Insure.com and The Life Insurance Industry Association, life settlements provided an average of 409% more cash to consumers than the policies’ cash surrender value.
Are you curious why some seniors choose a life settlement?
According to a 2016 report by A.M. Best Company, (a U.S.-based credit rating agency that provides financial data products and services for the insurance industry), some of the most common reasons that seniors sell their life insurance policies in the secondary market include (as quoted from the report):
- Premiums have become unaffordable, and the policies are in danger of lapsing
- Estate planning needs of the insured have changed significantly
- Funds are needed for long-term health care
- Beneficiary has changed because of death or divorce
- Disposal of unneeded “key-man” insurance or other business-owned insurance
- Fund new annuities, life insurance or investments
- Satisfy the need for cash in a forced liquidation due to bankruptcy or financial difficulties
- Liquidate policies donated to not-for-profits
- Dispose of policies that no longer are needed or wanted for a variety of other reasons
Are you wondering about the regulatory status of life settlements?
Although the secondary market for life insurance is an emerging marketplace, it has undergone a rapid regulatory expansion over the past ten years to keep pace with the consumer demand.
According to the Life Insurance Settlement Association, 90% of the U.S. population now falls under the protection of life settlement laws or regulations in 42 states.
Some states have even enacted laws or regulations that require life insurance carriers to inform senior consumers about the life settlement option. According to an article published in February 2016 by The National Law Review, the states of Kentucky, Oregon, Maine, Washington and Wisconsin have enacted life settlement disclosure laws requiring insurers to inform insureds about the possibility of a life settlement.
The Good News!
Your financial future may be more secure than you think. If your greatest fear is outliving your retirement money, your life insurance policy may be the key to providing you with income for life.
Click here to see if a life settlement is right for you. And with our flat fee solution, you may be able to retain a greater portion of your life settlement by paying less in brokerage fees. Contact us today!