Having insufficient funds available to pay the costs of chronic
illness can get in the way of suitable retirement and care planning. Most of us are now seeing what we believed to be
an adequate to comfortable retirement savings account, reduced sharply due to a shaky
economy and some of the worst corporate corruption in history.
For those over the age of 65, regardless of their health,
it’s a good time to examine your
existing life insurance and determine whether you still need the amount of coverage you
currently have. But, before you decide to cancel or cash in a policy for it’s
accumulated cash value, find out if you can obtain a much larger cash settlement through a
transaction known as a Senior Settlement. not to overlook the alternative of a Senior
Settlement,
Senior Settlements are a new option to pay for long-term care and
other retirement planning needs. A Senior
Settlement is the sale of an existing life insurance policy at a percentage of its face
value to obtain immediate funds. The seller is usually over the age of 65 and has one or
more policies with a death benefit of $100,000 or more.
The seller may utilize the funds of a Senior Settlement in any number of ways,
including accelerated retirement funding, payment of long-term care costs, or other
financial planning strategies such as the reduction of estate taxes or funding charitable
gifts.
A Senior Settlement
enables a life insurance policy owner to access value from an asset that heretofore was
available only after the insured passed away. Due
to the power and value of a Senior Settlement, many professionals have deemed it their
fiduciary responsibility to present this alternative to their clients. For example, elderly clients who can no longer
afford to pay premiums on their life insurance policy, or no longer needs the coverage,
may receive significantly more funds for this policy through a Senior Settlement instead
of simply letting the policy lapse or surrendering a policy. Many of the reasons people
originally purchased life insurance policies may change as they grow older
Reasons Why
a Senior Settlement May Make Sense for You.
1. A key executive is retiring. The company for which she worked
no longer needs the $5 million life insurance policy insuring her life. She does not wish
to assume the policy because she cannot afford the premiums.
2. Partners in a small business have a buy/sell agreement using
life insurance to fund the buy-out in case of a partner's death. The partners retire, the
business is sold during their lifetimes to a third party, and the policies no longer are
needed.
3. A 75-year-old widower owns a $3 million life insurance policy.
His estate will be subject to a hefty estate tax. He would like to make lifetime gifts to
his grandchildren but does not have sufficient liquid assets to do so, especially with the
large premium payment obligation.
4. A policy holder originally purchased the insurance to fund his
children's college education but his children have graduated and have jobs and children of
their own. The premium payments are becoming a burden. Further, the policy holder does not
want to saddle his children with paying for his care should his health deteriorate
further. He’d rather have long term care insurance at this point but does not have
the available funds to purchase it. A Senior Settlement could be the solution .
Obtaining an appraisal to determine if this financing alternative
makes sense for you is a simple process -- there's no out-of-pocket expense and no medical
exam is required.
For more information regarding the sale of a life insurance policy send an
E-mail to info@elderlifeplanning.com
and put “Senior Settlement Information” in the subject box.
Or call Informed Decisions toll free number 1-800-375-0595. |
