Are Life Settlements Good for Seniors?

http://www.mickelsonlife.com Are Life Settlements Good For Seniors: David Mickelson from Mickelson Capital Consulting, and todays topic is going to be, Are Life Settlements Good for Senior Citizens? Well, first of all, a life settlement is the ability of an owner of a life insurance policy, typically on someone 70 or above, to sell it to an investor in a secondary market. Now, the insurance industry for over 150 years has been very stable. But this advent of the ability to resell policies has been one of the most far-reaching changes to affect the life insurance industry. So the question on the table is a new and exciting, Yes! Is it good for the industry? Thats a question I cant answer. But clearly, from the point of view of seniors who want to sell their policies, undoubtedly its a good opportunity for them. In fact, financial professionals representing a wide swath of some of the most successful families in America have embraced the idea of life settlements. In essence, when life insurance policies are no longer needed, seniors can sell those policies with a life settlement for a substantial amount of cash. The fact is circumstances can change, even for very successful families. And while life insurance is a great asset, it can become a burdensome asset to have to keep paying the premiums. So, with that, Im going to list for you some of the benefits of a life settlement. Number one, its cash that be developed rather quickly for any purpose whatsoever. Number two, a less expensive policy is oftentimes available nowadays. So if somebodys in decent health they might very well sell a policy for a substantial amount, and be able to replace that policy with something that costs less, using the life settlement proceeds as the down payment so to speak, to get a new policy. The ability to take advantage of alternative, compelling investment opportunities is another reason. So if somebody has a policy they dont have to feel that they are irrevocably locked in. And something that has not been spoken about much, but I personally feel is the most powerful reason why life settlements are actually good for the insurance industry and seniors is this. And its peace of mind. Traditionally, life insurance appeared, from the buyers point of view, that means the insureds, as an expense. So its difficult for them to feel comfortable buying a policy and then paying the premium all the time. So, nowadays, if people know that theres a possibility of reselling the policy in the future if their circumstances change its really a great deal of peace of mind knowing that theyre not locked in, that have dollar they send away in premiums isnt sunk. Well, with that, I thank you for your listening and have a great day.

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