How A Life Settlement Can Enable A Housing Upgrade
Housing can present a good news-bad news scenario for seniors; many have been in their homes long enough to see them paid off, but limited retirement income makes it difficult for them to keep up with home repairs. A smaller budget, paired with rising costs of healthcare and other late-in-life expenses, make it tempting for seniors to defer maintenance on their house.
Retirees might cut costs by cancelling their lawn care or pest control contract or by putting off repairs that they know need to be tackled. Whether it’s a new roof, more energy efficient windows, wood replacement or plumbing issues, it is common for homeowners over 65 to postpone necessary repairs because of financial worries. The unfortunate result is a home that is deteriorating, losing value and, in some cases, creating a hazard for the seniors living in it.
Some non-profits and ministries have organized programs to provide free home maintenance for seniors, and those groups can be a godsend. But because upkeep of a house is an ongoing task, most seniors need more than occasional nonprofit help to keep an older home in good condition. In many cases, seniors are realizing that a smaller, less time-consuming house would suit their stage of life better, but they don’t have the funds to even think about a move.
A life settlement can be the answer to this housing dilemma. Like an old house, an old life insurance policy can outlive its necessity and actually become a burden. In many cases, that policy can be sold to create an extra source of income, and the cash obtained from the settlement can make a way for seniors to transition to a more favorable living situation.
The profits from a life settlement might be the boost a senior needs to move into a new home, possibly a townhome, a house in a gated neighborhood or an apartment in a retirement community. There are options for seniors that take away many of the standard maintenance concerns and allow individuals over 65 to enjoy their golden years with much less stress over house issues.
Some seniors might not want to move, but a life settlement could provide them with enough money to complete all of those repairs that they have been putting away for years. The end result could be a more efficient, pleasant and attractive version of the home they have loved for years—a place to continue making memories with family or friends. In either case, a life settlement may be the key to unlocking either a new or remodeled home. To find out if you might qualify for a settlement, use Magna’s handy life settlement calculator.
June 18, 2018Magna Life Settlements
The Hidden Financial Asset Most Retirees Don’t Know They Have
Even seniors who have planned carefully often find that the costs of retirement add up, forcing some retirees to cut corners severely on everything from health care to travel to legacy expenditures like helping with college tuition for grandchildren. Everyone over the age of 65 wants the freedom to create a retirement that meets their needs and those of their loved ones, but to fulfill those hopes they might need to tap into a little-known resource that could turn a dead-end account into an asset.
Life insurance is property and therefore can be sold in a transaction known as a life settlement, but 90 percent of seniors let their policies lapse instead. Instead of lapsing a policy, seniors should first find out how much value their policy holds. A quick example of the hidden value within a life insurance policy: a 73-year-old man who chose to sell his policy learned that his $5 million policy would yield $1.55 million through a life settlement. If had surrendered the same policy back to the insurance company, he would have received just $210,000.
Here are some surprising facts about the hidden value of your life insurance policy:
1. Even though the life settlement industry has been around for more than 25 years, many seniors don’t know that they have the option of selling their policy because insurance companies haven’t been obligated to tell them about it. Thanks to state regulations, that’s changing.
2. This year alone, Americans are expected to make $3 billion in life settlements, putting money to work that would otherwise be lost if the policy was allowed to lapse.
3. The amount of a life insurance payout is directly related to two factors: the policy holder’s overall health and the cost of the original policy. A life settlement calculator can help a policy owner determine if their life insurance has any value.
4. The cash from the sale of a life insurance policy can be used to help fund long-term care, medical treatments, travel or family activities.
5. The life settlement industry is regulated by each state’s department of insurance, and eight states, with two more pending, have recently passed laws requiring insurance companies to disclose the life settlement option to their policy holders.
6. Seniors wishing to explore life settlements can start by calculating the payout value of their policy with Magna’s Life Settlement Calculator. The potential to turn a no-longer-needed insurance policy into much-needed cash might surprise you.
If you or a loved one is nearing retirement age or already navigating life through the senior years, it’s crucial to know the options surrounding old insurance policies. Life settlement companies like Magna stand ready to answer your questions and help you decide if selling a life insurance policy is right for you as you seek to optimize your retirement years.
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