Senior Life Settlements: A Growing Market

As a person grows older, they may become strapped with debts and necessary payments. Perhaps a person has been diagnosed with a life-altering prognosis and needs help with medical bills, or a terminal patient wants to improve their quality of life. There are a variety of reasons someone may need financial help. That’s where senior life settlements come in.

In 1911, the Supreme Court case Grigsby v. Russell decided that a policy owner could transfer an insurance policy. This decision was immediately most popular with terminal patients, and it has been gaining traction with seniors recently. People can now transfer their no-longer-wanted life insurance to a third-party investor.

Selling a life insurance policy in a time of need may be a difficult decision to make, but it is one that makes a lot of sense and can benefit a person greatly. Among other reasons to sell, such as outliving beneficiaries, changes in tax law, or a no-longer affordable premium, a senior life settlement yields a reward that can deliver necessary aid to a person with growing debt. Selling a life insurance policy yields a reward that is higher than the cash value accrued, but lower than the face value, and the surprising amount of money can be a huge comfort. The peace of mind that can be provided, along with the much-needed money, is invaluable.

There are a variety of policy types that qualify including:

• Term life insurance
• Universal life insurance
• Whole life insurance
• Joint survivorship life insurance
• Most group life insurance
• And key-man life insurance.

These can all be sold for above their accrued cash value, and the money can help with medical bills or providing relief during illness.

Before, the only opportunities for opting out of a life insurance policy were letting the policy lapse, or taking the cash value that built up. A senior life settlement can yield a much higher return than either of these options, enough for medical bills, a higher level of comfort, or paying off debts, among other things. Selling life insurance can be very suitable for those who need the money for the end of their lives, or those who are looking for more comfort in sickness.

By deciding on a senior life settlement, a person can pay off some of the mounting medical bills that would otherwise be left to family members, or even make themselves more comfortable in a terminal case. This choice is becoming more and more popular. Talking to those who care can end in an equitable amount of money for a senior who needs it.