Life Settlements helps finances, alternatively

As a card carrying member of the Golden Years community, you are aware of the privileges that accompany membership.  You have opportunities to save when other members of the general public have to pay full price.  One benefit that comes with being a part of the senior community is an alternative investment, Life Settlements.  With Life Settlements, you are able to withdraw a cash amount of your choosing from an existing insurance policy.  You don’t need to have a specific reason in order to access your money, whatever reason that it is suffices for Life Settlements.

(more…)

Now seniors can get the life insurance they need without fear that they are locked in to an expensive policy.

The decision to buy life insurance is being made easier for seniors by having a life settlement option available. For almost 20 years I have recommended to seniors that they should purchase enough life insurance to cover estate and other taxes when they die. These estate taxes will wipe out up to 50% of a person’s wealth. No matter how well they invest or how large they build their fortune, half of it will go to the government.

Roughly speaking, life insurance costs about 10% of the total death benefit. The death benefit is a tax free sum paid to the beneficiaries. For $100,000, a senior can buy about $1M in life insurance. To realize the equivalent value by investing, a senior would have to invest that same $100,000 well enough to grow to $2M.

As good as the case is for investing in life insurance, the insured client always viewed the life insurance premium as a sunk cost. It is a very substantial annual cost and the insured does not recieve the benefit themselves. In addition, if a senior’s circumstances changed and they could not afford the premium, the senior could risk a major loss. The cash surrender value of a life policy is typically far less than the premiums paid

In the last decade or so that has changed thanks to the life settlement market. This large secondary market allows investors to buy a senior’s life insurance policy. Secondary markets are normally very positive for consumers. Imagine if there was no secondary market for real estate. How confident would you be spending a large some of money on a house if you knew that you could only sell it back to the builder for a fraction of what you paid? Even if you really wanted the house, it would be a nerve-racking decision. That is exactly what seniors faced when buying life insurance without a life settlement option.

Life insurance for seniors is now an asset just like any other. It can be valued on an open market and sold, if need be. This dramatically changes the mindset of the buyer; they don’t see money leaving their pocket as an expense but rather a reallocation of assets that can be converted to cash in a life insurance settlement, should that become advisable.

This phenomenon has melted away the largest impediment for seniors to buy the life insurance they need.

Beautiful new professional offices overlook the pacific and the beach house from Top Gun!

Our new offices embody an important principle that the company is founded on. We take our profession and the trust that our clients place in us very seriously and it is important to demonstrate that in how you present yourself. It’s a great perk that I get to view the Pacific ocean while I write this but what is more important is that our clients see our pride, professionalism and how seriously we take our charter.

Ultimately it is always actions that speak loudest, but when choosing a life settlement broker I believe that the image they choose to project is an important indicator. When a life settlement company takes the time and investment to build a professional looking operation the chances are that they take their clients success very seriously.