Why are Life Insurance Settlements Good for Seniors?
The life insurance settlement market is the most striking change in the life insurance industry in over 150 years. Life insurance has always been a bedrock product of the financial industry and estate planning. However, when seniors discover they may be able to sell their life insurance for substantial cash profit while they are still alive, it can completely change how they view this product.
Financial professionals for some of America’s most successful families are strong believers in the benefits that life insurance and a life insurance settlement can bring their clients. Harvey Bookstein, is a CPA and founding partner of RBZ, LLC one of the top CPA firms in California. His firm is an authority on estate planning and matters concerning settlements for seniors. He works regularly with David Mickelson on life insurance and life insurance settlement cases, to the great benefit of his clients.
“I think most seniors hear about life insurance all the time, but they don’t hear about senior life insurance settlements. It’s not a common word that you would hear, as you would hear about life insurance.
I think if they understood the value of going ahead and seeing what senior life insurance settlements can do for you, how it can add to you financially and give you some security, everyone would do it.”
Harvey Bookstein, CPA
Founder of RBZ, LLC
Top 20 California CPA firm
Senior Life Insurance Settlements Can Provide Seniors with Needed Cash
When seniors make senior life insurance settlements they can generate a substantial amount of cash from the sale. In a majority of instances, investors will pay the family owning the policy far more than the “trade-in” or surrender value that otherwise would be paid back from the issuing insurance company.
The fact is that financial circumstances can change rapidly. While life insurance is a very important tool for seniors in protecting their wealth the premiums can become burdensome. Life insurance industry research indicates that historically, over 90% of all newly issued life insurance policies never pay out death benefits because they lapse or are cashed in.
Without the senior life insurance settlements market, seniors who chose not to pay or could no longer afford their life insurance had to resign themselves to a large potential loss. Life insurance premiums for seniors are high and can be a significant drain on cash flow. By working with a life insurance settlement company like Mickelson life insurance settlements, not only is a senior able to regain cash flow but often times he or she can sell their policy at a healthy profit above the aggregate of premiums paid. Mickelson has the extensive experience helping seniors with senior life insurance settlements.
Some Of The Benefits of Senior Life Insurance Settlements
- Cash for any purpose; unexpected expenses, gifts, investment, lifestyle changes
- A less expensive policy may be available. Proceeds from settlements for seniors can effectively be used to purchase much lower cost life insurance.
- Relief from premiums that have become burdensome
- Ability to take advantage of a compelling alternative investment opportunity.
- Peace of mind knowing there is an exit strategy available makes buying and owning life insurance much more attractive
Life insurance has become much like other assets where a resale may generate substantial cash. Settlements for seniors can provide an early liquidity option to seniors. In return, life insurance settlement investors get a safe high return asset.
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. He is one of the best investment advisor for seniors in the market.