It’s never too early to consider the options available for funding retirement whether you’re a part-time blogger, a work-at-home-mom, or a small business owner.
Financial Priorities and Economic Realities
Whether you are a professional in industry, small business owner, part-time blogger, or stay-at-home mom, priorities and goals are apt to change over time.
How we manage our finances and how we spend our hard-earned dollars tends to shift in line with those goals and priorities. At this point in life, many of us are thinking about (or wish we were thinking about) what is often called “the Golden Years.”
Retirement may be close at hand for some (or way over the horizon for others).
Whatever our present circumstances and no matter the differences in age, the economics of our times is on our minds.
And the truth of the matter is, the state of the economy as we’ve witnessed it over the last couple of decades has us worried that retirement — as we’d like to envision it — might not really be in our future.
It’s never too early to consider the options available for funding retirement whether you’re a part-time blogger, a work-at-home-mom, or a small business owner. Senior settlements, a financial service from the insurance industry, could contribute to retirement cash flow.
Information is power
Forewarned is forearmed, and with that in mind here is a bit of information that could make the difference between being liquid and experiencing a cash flow quandry.
Whereas the information might not benefit you personally at this time in your life, it might make the difference for parents, grandparents, godparents, church members, retirement bloggers, business partners or investors — anyone who might seek your opinion or look to you to share world-changing information because you are “out there on the internet!”
Here’s the question: Is life insurance settlement for seniors a smart cashflow strategy to pursue?
The definition of settlement according to the dictionary at Investopedia.com is “the selling of one’s life insurance policy to a third party for a one time cash payment.”
The idea of settlement in this context is not about a legal proceeding; instead, it applies to insurance policies held by seniors, whether retired, an executive (or regular employee) on the work force, homemaker, disabled, or a business owner.
Investopedia.com sheds some further light as to when or why senior settlement comes into play:
- Life settlements are usually only done when the insured person doesn’t have a known life-threatening illness.
- They are often done with “key individual” insurance policies held by companies on executives who no longer work there, thus the company can stop paying premiums and cash out the policy.
- Sometimes people outgrow their need for a specific life insurance policy, and settlements may offer the chance to gain more than the policy’s cash surrender value.
Ask the right questions
There are many articles that answer common questions. In an effort to educate the community about settlements, New Retirement, shared the following quote in their article, Convert Your Life Insurance Policy into Cash with a Life Settlement to Help Fund Retirement Expenses:
Until recently, people with unwanted life insurance would either let their policy lapse or surrender the policy back to the insurer for the cash surrender value. However, Life Insurance Settlements — also known as Life Settlements or Senior Life Settlements — are a new type of financial service being popularized by specialized brokerages. These brokerages sell your life insurance policy to institutional investors for typically three to five times the cash surrender value of the policy. — New Retirement
Consider the Option
Although life settlements are a viable financial service that should be considered as part of a retirement portfolio, oftentimes insurance companies will not inform long-time policy holders of their availability. But with libraries of information available, like those mentioned above, more and more individuals are looking to the life settlement industry for new opportunities and financial solutions to help ensure the golden years can be enjoyed.
We can see that for a variety of reasons, senior settlements could be good options for some seniors. Just like with any other financial investment strategy, this type of financial solution should be given careful consideration and discussed with family, business partners and a financial advisor before making any moves.
What’s your take on this? Use the comment area to share your thoughts with us.
Image(s): Gratisography and Bell’s Design.
Vernessa Taylor | CoachNotes Blog
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This is a very interesting topic. I can see the benefit if their are things within your insurance that you don’t need to consider selling, however you never know when things will change and the need for that specific coverage will present itself.
This was a very helpful post about senior settlement and I also liked the way how you used different sources for information using the internet. It’s true that we can source many information this day using the internet. I believe that almost anything can be easily learned by browsing the web about tips, tricks and other information.
Forewarned is forearmed, and with that in mind here is a bit of information that could make the difference between being liquid and experiencing a cash flow quandry.
Whether you are a professional in industry, small business owner, part-time blogger, or stay-at-home mom, priorities and goals are apt to change over time.
Very thought provoking article.After reading this post automatically we think of what or how would be our future linking it to our present living style. My aim is to earn lot of money not because i am greedy but for a fact that money is essential in life. Our future totally depends on our present. So it would be wise if we prepare for our future by investing or joining a retirement plan.So senior settlements are a smart idea !!!!Thank you for sharing this article
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I didn’t even know this was possible to do.
But your right, planning is everything, and without a solid foundation of where the US will be tomorrow, people need to have plans like this.
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Don’t feel bad, Kaloyan. Even those of us who worked for the same corporation for decades rarely collect pensions. Those are carrots corporations dangle with no intention of ever paying out when the time comes. Very similar to insurance companies.
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Hello Vernessa Taylor,
Well, life insurance is essential for better life because it play a big role for supporting the families. whatever the policies are behind the life insurance is, it is the best plan for life.
Welcome, videojeeves. So long as we deal with ethical insurance companies who pay out benefits when the time comes to do so, having insurance can help the families left behind. The good thing about the idea of life settlements is that those who paid the premiums for so many years get to benefit from their investment while they’re still with us.
Thanks for sharing knowledgeable post….:D,I found it interesting,Your article makes me to think about many issues that may arose in future so have to plan many things,Thanks for giving me an idea about such issues…….:)
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LOL, well that sounds like a plan, Kaloyan! I think in finance terms, that’s called self-insured. 🙂
Vernessa Taylor would love you to read ..Cashflow Quandry: Are Senior Settlements A Smart Idea?
Thanx Vernessa for giving a direction to make our future financially safe and sound and also independent..
Appreciate your comment Ruchi.
Hey Vernessa,
You picked up a nice subject for write. Generally people are more looking this kind of information more. Thanks for sharing this information with us.
Thanks for your comment, Bhavesh. Information is power 🙂 and it is good to at least know the options just in case we can be a resource for someone who needs this information.