Insurance Overload: Insurance Premiums too Expensive
Insurance Overload is when an insurance policy holder is overwhelmed financially with the cost of premiums – leading to a lapse in their policy. It’s an idea reinforced from the very advent of adulthood: it’s better to have too much insurance than too little. In the case of retirees, over insurance is a very real possibility, and it’s a problem that can keep seniors from having sufficient resources for the costs of their golden years, expenses like medical bills, long-term care and travel.
Magna Life Settlements Overview
Insurance Overload: Having too much Life Insurance
Sometimes middle-aged adults, unsure of their future needs and swayed by persuasive sales pitches, buy large policies, or several different policies, because of their fear of leaving their families with no means of support.
Sometimes the amount of coverage makes sense at the time of purchase, but as the years go by circumstances change and that level of insurance is no longer needed. Maybe your original beneficiary no longer needs the financial support they once needed in your younger years, or your family dynamics have changed. Many seniors find that they are paying prohibitive premiums, giving money they need for daily expenses to an insurance policy that isn’t actually serving them anymore.
When they are over insured, they may come to the realization that while they still need some life insurance, they don’t need as much as they have been carrying. Even if beneficiaries might still need a payout when the policyholder dies, an overly large policy might give them more than they actually need. Above all, seniors need to make sure that they haven’t invested in life insurance to the detriment of their own livelihoods.
Do you have too much Insurance?
If you suspect you might be over insured, schedule an appointment with a trusted financial advisor to evaluate all of your insurance holdings and their efficacy for your situation. If you have too much insurance, the next step is to investigate the possibility of selling your life insurance policy. For those who qualify, a life settlement can turn a liability, excessive insurance, into a windfall of available cash for immediate retirement needs.
Magna’s life settlement advisors are available to answer questions about life settlement criteria and the steps in the process.