How Do Smart Seniors Use a Life Insurance Settlement?


use life insurance settlement


Thousands of seniors sell life insurance policies in a life insurance settlement. There is a large and rapidly growing market of institutional investors who want to buy life insurance policies. This means that seniors should no longer view life insurance as a sunk cost; rather it is an asset that has a secondary resale market value just like stocks, bonds or real estate.


Benefits of Life Insurance Settlements

With a life insurance settlement option available, seniors can buy the insurance they want confident that there is an exit strategy should they need it. The knowledge that you can sell a life insurance policy should the need or desire occur, provides great peace of mind. One of the biggest traditional obstacles to buying life insurance was the fact that it was not a liquid asset that could be sold without taking a significant loss.

Life settlements can enable a senior to take advantage of newer, better-priced policies. In fact, the technique of making a life settlement on an older policy and using the proceeds to buy a new policy is a powerful financial strategy. When working with a financial professional like David Mickelson, who is an expert in both the life settlement market and the life insurance market, clients can buy new policies that have more coverage for lower premiums, and come out well ahead.

Selling an old life insurance policy in a life settlement and then buying a new replacement life insurance policy may:

  • Lower the annual premiums on the new policy by very significant amounts.
    Or -
  • Put cash in your pocket. Provide a new policy with equal or lower premiums.

Here are some life insurance settlement case studies of seniors who were clients of David Mickelson.

Life settlements are still a relatively new financial strategy and many financial advisors and professionals are not very familiar with them. Smart seniors know that a life settlement needs to fit into their overall financial plan and keep it under regular review.

  • Choosing the right help in this area is a critical decision. Seniors should work with experienced life settlement companies that are members of the Life Insurance Settlement Association (LISA). Additionally, the best professionals have broad financial experience and understanding so they can ensure that all decisions are based on the best interest of the insured, family and estate plan.

Seniors should monitor the life settlement value of their life insurance, just as they would monitor the value any other asset in the family portfolio. Seniors who know what the life settlement value of their policy is can make an informed decision to buy or keep a particular life insurance policy.

Seniors can earn money by selling life insurance policies that are no longer needed. But, they also should be aware of the value to their estate and heirs in keeping a policy. In some cases, it may be unwise to make a life settlement, even if a policy can be sold. No decision should be made without a thorough and thoughtful analysis. It's important to understand that life insurance remains an essential financial tool for seniors. But with the new market for life settlements, they are no longer locked into their life insurance policies.


About the author:

David Mickelson, ChFC, AEP is an expert in wealth strategies for seniors. He has helped hundreds of seniors with life insurance, life settlements and all aspects of estate planning.





Improve Your Retirement

Senior Life Settlements are fast becoming an essential tool in improving finances for retired Americans. In addition to generating potentially large cash lump sum payments seniors are dramatically reducing their monthly expenses. Often they can also replace their sold policies for less money and larger benefits.



Life Insurance Settlement Info:

See how David Mickelson helped these savvy seniors through a Life Insurance Settlement.

See how these smart seniors used Life Insurance Settlements.

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