Many policy owners are dissatisfied with the limited opportunities provided by the terms of their life insurance policies. As a result of this, today, many senior citizens are looking to the life settlement industry for new opportunities and solutions. These senior policyholders are discovering that they can sell their life insurance policy to a third-party for a more favorable sale price than the cash surrender value of returning their policy to the issuing life insurance company. In many situations, this third-party is a life settlement company. By relinquishing ownership of their life insurance policy, these insurance owners can receive a lump sum from an investor and, then, allocate the funds to any expense that they choose.
Many seniors feel burdened by the obligation of paying monthly premiums in order to retain a life insurance policy, especially when they review the changes that have occurred in their lives since they purchased the life insurance policy. They are learning that a senior settlement can offer them a degree of financial freedom they had not known was an option. This financial strategy allows these seniors the opportunity to receive a price by selling their insurance policy that significantly exceeds the cash value available to them if they surrender the policy.
This option appeals to American senior citizens who value personal choices and individual liberty when it comes to the economy, society, and personal life. These values are simply ingrained in their way of thinking. As stalwart defenders of freedom in the marketplace, seniors respect the personal right to maximize the value of their assets by seeking the highest possible sale value for them. With choices come opportunities.
Life insurance has often been the subject of harsh criticism because people either have difficulty understanding the product or are simply unaware of how best to capitalize on the benefits of owning an insurance policy. With the aid of financial advisors, however, many insurance owners are exploring the option of maximizing the value of owning a life insurance policy by leveraging it, through a life settlement.
Also, priorities change over time. Many seniors recognize this is true for them and they are now reorienting their priorities and making decisions to release themselves from the binds of extraneous obligations that offer little benefit. A policy that may have been useful for years in the past, may now be a burden. By re-aligning their financial plan with current priorities, seniors are choosing financial empowerment over passivity. No one is surprised when life changes prompt new financial choices. So, not surprisingly, household changes can make certain life insurance policies obsolete.
Upon a closer evaluation of their insurance policies, some policy owners are recognizing that, as they get older, their policy is subject to a steep increase in premiums. When this happens, it starts to look like the financial demands of maintaining a life insurance policy outweigh the benefits. This is further aggravated for seniors when these hikes in insurance premiums occur during times of personal financial instability and elevated health care costs. Therefore, it is no surprise that many are opting for life settlements and, then, either purchasing other insurance policies, or investing their money in something else. Many life insurance policies are simply outdated, and do not fit the ever evolving, modern lifestyle of today’s senior citizens.