Many misconceptions exist about the life insurance industry, as well as life settlements. According to a 2021 study performed by PolicyGenius, just over half of Americans currently hold some form of life insurance. With the majority of the population taking up this investment, it’s important that policyholders understand all of their options as it pertains to the matter. In this blog, we’ll highlight some of the most common myths associated with life insurance and settlements.
Life insurance is purchased with the purpose of providing financial security for your loved ones in the event you are no longer around to provide for them. The primary purpose of a life insurance policy is to furnish a steady stream of income for your family when you pass. This amount of money can also be used to pay off any medical bills from treatments you might have received. There are many times that this stream of money needs to last for a lifetime. Life insurance is an elective that many people are provided an option through their work - similar to health insurance. However, if it is not offered to you there are many organizations you can purchase life insurance through.
Do you have a life insurance policy that you’re about to let lapse? Maybe you’re thinking about surrendering the policy for its cash value. Are you 65 years or older?
Surprisingly, viatical settlements are not as well-known as they should be. Many people, despite possibly benefitting from the choice to arrange for a viatical settlement, don’t know about them or discuss them. Nevertheless, a viatical settlement is a lucrative arrangement for people suffering from a terminal disease. These people are able to sell their life insurance policy at discounted rates and obtain cash, which can help with financial hardships or other needs. Buyers cash in the policy’s full amount after the death of its original owner. While distinct from life settlements, viatical settlements are also a useful asset for people in specific situations.
On the surface, life insurance seems like a straightforward type of insurance policy. But could it be a financial asset? That depends on the type of life insurance policy, as well as your perspective. Some types of life insurance, as well as several other insurance types with cash value components, count as assets. This should be kept in mind for many events, such as divorce and other legal proceedings, but also because they may aid you in obtaining financial security when and if it is ever necessary.
A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. In a life settlement transaction, the policy’s owner transfers ownership of the policy to the buyer in exchange for an immediate cash payment and, in some instances, a reduced interest in the death benefit for the policy’s beneficiaries.
Nashville, Tenn. — October 15, 2019 — The Life Insurance Settlement Association (LISA), the oldest and largest trade association representing members of the life settlement industry, hosted its 25th Annual Fall Life Settlement & Compliance Conference this week in Nashville and rolled out an aggressive strategy for encouraging legislation that protects a consumer’s right to sell a life insurance policy.
(NAPSI)—Many retirees share a fear of gradually losing their ability to think as clearly as they used to or remember simple information such as other people’s names. And while everyone has the occasional “senior moment,” medical research indicates that aging by itself is generally not a cause of cognitive decline.
(NAPS)—The Stanford Center on Longevity’s 2018 “Sightlines Report” found that baby boomers have accumulated less household wealth and carry more debt in comparison to previous generations of American retirees.
A common decision that faces nearly all seniors at some point is when to begin “downsizing” for retirement. Many older Americans who have lived in the same house for decades eventually conclude they just don’t need as much room in retirement as they needed while raising their families — and in fact the extra space isn’t worth the expense and time required for its maintenance. The fact is that downsizing isn’t a concept limited to the size of your house or the amount of possessions sitting in boxes.