When Families Change, Life Insurance Needs Can Change Too
When someone takes out a life insurance policy in their ‘30s, ‘40s or ‘50s, that purchase is predicated on assumptions about the future of the policyholder’s family. But unexpected changes to the family structure can occur over the years, and for seniors those changes might lead to the consideration of a life settlement.
Insurance For Your Family: What you must know
The most common family change, with obvious insurance ramifications, is divorce. Often a person buys life insurance, names their spouse as a beneficiary and later gets divorced, voiding the need for a policy that will support the surviving spouse. If the policyholder is over 65 and paying into premiums unnecessarily, a life settlement can turn that situation around and provide a windfall rather than burdensome expenses.
In the same way, a senior who undergoes a divorce and then gets remarried later in life may want to schedule a life insurance check with their broker to guarantee that the coverage serves the needs of the policy owner and his or her new spouse. A new policy with a new beneficiary might not be practical or affordable if the remarriage happens late in life, but that new family could be eligible for a cash windfall through a life settlement that they can enjoy in their retirement years.
Insurance Policy Review
If an insurance policy is structured to benefit children or grandchildren, the addition of family members through birth or adoption could prompt an insurance re-evaluation. Some policyholders, particularly seniors, opt to sell their policies and use the proceeds for college funds or other legacy investments rather than an insurance policy that will pay out after their death. Seniors who create educational funds for their grandchildren can have the benefit of watching those young people take advantage of higher education and make steps toward building their futures.
Life Events Lead to New Insurance Needs
Change is inevitable in life, and changes to families—whether welcome or unwelcome—can create new investment and insurance needs. Seniors with a thorough understanding of their financial options will provide the richest opportunities for themselves and their loved ones, and those facts are available from trusted financial advocates or specialists like the ones at Magna Life Settlements. If you have seen changes in your family and believe that a life settlement could be a better use of your resources than an unneeded life insurance policy, set up a call with a Magna advisor or try our simple life settlement calculator today.
Best Blogs to Inform and Enrich Older Americans
Certainly, there are some in the over-65 demographic who still get their news from traditional newspapers and television newscasts, but the newer media can offer a breadth of perspective and information beyond what one can find through old-school means. Because blogs are accessible to anyone and space on the Internet is unlimited, seniors might be overwhelmed when searching for blogs that are worth their time.
Here are five websites with blogs that provide informative, relevant and entertaining content for seniors:
The New Old Age
Any blog published by the New York Times can be trusted for accurate and quality information, and this column by Times writer Paula Span covers everything from changes in Medicare and Social Security to specific medical issues for an aging population to current events like the potential concerns with gun ownership by seniors.
My Itchy Travel Feet
This site, subtitled, “The Baby Boomer’s Guide To Travel,” features detailed articles about domestic and international travel destinations, customized for seniors. For the past decade, seasoned travelers Donna and Alan Hull have chronicled their own adventures and also reported on topics like necessary travel gear for retirees, options for group tours or other organized excursions and the latest online travel deals.
Minding Our Elders
Aimed at caregivers and the seniors they care for, this site explores the challenges and joys of elder care with insight and heart. Founder Carol Bradley Bursack examines everything from caregiver guilt and isolation to ideas for helping seniors preserve their independence and dignity. Recent posts include, “Valentine’s Day: Celebrating When A Loved One Has Dementia” and “Some Risk Is Often the Price of Living, Even for Older Adults.”
Administered by Boston College’s Center for Retirement Research, this blog features articles on the most current financial research that can impact seniors, as well as extensive analysis on everything from retirement trends to new financial products for seniors. With a clean look and a foundation in trusted, academic sources, this blog will help retirees answer a range of personal finance questions.
A space especially for senior women, this blog provides a space for stories about women living out their retirement years in unique and bold ways, recollections from outside contributors and women-specific insight into current events that impact seniors. The site’s forum is a platform for women to support and inform each other, and the “ElderExperts” section features articles from experts on a range of topics.
These links are provided for your information and convenience only and are not an endorsement by Magna Life Settlements of the content of such linked websites or third parties. Magna Life Settlements has no control over the contents of any linked website and is not responsible for these websites or their content or availability. Magna Life Settlements makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, the information contained on them or the suitability or quality of any of their products or services.
How To Select A Financial Advocate Who Understands Retirement Planning
Like a long-time doctor or a trusted hairdresser, a good financial advisor is a professional who can come to seem more like family. And since one of the most important roles of a financial advocate is to help a client plan for a stable retirement, how can you select an advisor who is genuinely caring, has extensive financial knowledge and who clearly understands your ideal retirement?
It’s not a decision that should be entered into lightly. Ideally, you will form a relationship with a financial expert who can help you navigate any potential pitfalls and difficult decisions that will arise on the road to retirement. Here are the key considerations that should guide you as you look for a financial advisor:
You will want an advocate with the education, background and experience to help you through any financial landscape. c You want an advisor who is up to speed on the latest offerings and pursues regular training and education to learn about new products.
Financial planners typically earn their money in one of two ways—by commission or by charging flat or hourly rates for their services. Make sure you understand the charges before you hire an advisor and feel comfortable that if your advisor works on commission he won’t try to steer you to more profitable products that might not be right for you.
It may seem like an intangible factor in a world of numbers, but because a relationship with a financial planner can last decades you may consider evaluating whether an advisor is trustworthy, honest and dependable. Interview several different candidates and see how you connect with each one. If you still need guidance, talk to friends and family about their own experiences with professionals in the field.
One emerging financial opportunity that an advisor might bring up to a client is a life settlement, which allows a senior to sell an unwanted life insurance policy for a cash payout. An informed financial advisor can help you understand the qualifications and potential benefits of a settlement. For a simple calculator to ascertain whether you might qualify, visit Magna Life Settlements today.
The Insufficiency of Social Security to Fund Retirement
With a checkered history and the very real fear that funds could be depleted before many current workers can benefit from them, Social Security may no longer be the safety net it was envisioned to be when it was established nearly 85 years ago. Today’s seniors, as well as younger Americans planning for retirement, must pursue other financial avenues to ensure comfort during their later years.
The timeline of Social Security, from the time it was created to provide benefits for workers who retire at age 65 or older, includes several expansion measures and other adjustments to deal with the nation’s financial downturns. The last major legislation designed to protect the fund, passed in 1983, called for a gradual increase of eligible retirement age from 65 to 67 and boosted the Social Security tax with the hopes of generating a surplus to help take care of Baby Boomers when they reached retirement age.
That day has been reached, and the surplus is disappearing fast. Following are three of the chief causes of Social Security’s decline:
An Imbalance Between Workers and Beneficiaries
The expected surge in retirees as Baby Boomers have left the workforce has been met with a corresponding decline in the number of workers, so that the contributions to the fund are not nearly enough to cover those who need it today. The worker-to-beneficiary ratio is expected to fall from 2.8-to-1 to as low as 2.1-to-1 by the year 2035. (source: The Motley Fool)
An Upward Trend in Life Expectancy
Studies from the Center for Disease Control predict that people born today can expect to live to an average age of 78, up from 70 just 50 years ago. Notably, however, life expectancy declined slightly between 2014 and 2017 not because of increased mortality among seniors, but due to the alarming rise in suicide and drug overdose fatalities. The broad trend—that Americans are living longer—will lead to an ongoing drain on the Social Security nest egg.
Record Low Yields for Special Issue Bonds
These bonds, traditionally the source of interest income for the Old-Age, Survivors, and Disability Insurance Trust (OASDI) that funds Social Security, are generating less income than ever due to historically low interest rates. If interest rates stay low, the bonds will produce yields that are often lower than the inflation rate. As a result, the Social Security surplus will disappear faster without a steady source of income to stabilize it.
Future legislation could very well address the insufficiency of Social Security and take measures to shore up the program, but seniors can’t count on the survival of an issue that is a known political football with a host of sustainability issues. A life settlement can be an ideal way for many seniors to secure a cash windfall in exchange for an unneeded life insurance policy, and the proceeds from the settlement can help fund retirement expenses that Social Security once covered for past generations. For more information about life settlements, contact Magna today.
The Top 8 Cities for Retirement in the U.S. in 2019
Once you reach retirement age, it’s important that you are able to manage your finances properly. Stretching the dollars you’ve saved may mean you’ll want an inexpensive place to live out your retirement. If you’re looking for U.S. cities with a low cost-of-living, check out our list below.
Where to retire in the United States in 2019?
8. Cleveland, OH
Cleveland’s annual living expenditures total around $36,000. This figure factors in important items such as your housing, healthcare and transportation costs. Frugal spenders who have managed to save a modest amount each year throughout their working lives will have no trouble managing their expenses in this city.
7. Augusta, GA
You can expect to spend $35,781 on an annual basis should you retire in Augusta. In addition to low costs for your basic needs such as food, housing, medical and transportation expenses, there are other reasons to choose this city in Georgia. Relatively warm summer temperatures are a major draw and many current residents report a high happiness index.
6. Brownsville, TX
There are several cities in the state of Texas that make excellent choices for retirement living. Brownsville is one such city, boasting a low cost of living of only $35,461 each year. Because it’s Texas, you’ll also enjoy warm or moderate temperatures all year round. If you want to experience other cultures, you’ll find a large Spanish-speaking community in Brownsville that is eager to welcome newcomers.
5. Toledo, OH
We’re back to Ohio, where you’ll only have to spend about $35,095 annually to enjoy a relaxing retirement lifestyle in Toledo. Groceries for an entire year will only cost you $3,375 and even the highest estimated expense – transportation – comes in at an annual total of $6,814. Current residents report high happiness across various age groups and enjoy access to many of the city’s amenities.
4. Memphis, TN
Memphis offers you warm temperatures and friendly greetings for just $33,859 in annual costs. The city combines a laid-back atmosphere that is perfect for easy-going retirees along with the amenities and upscale venues one might expect from a major metropolitan area. If you’re looking for a slower pace as you enter retirement, but don’t want to sacrifice the modern conveniences of a major urban area, you should definitely consider Memphis as your retirement destination.
3. Jackson, MS
A move to Jackson might be perfect for you if you enjoy distinctive culture coupled with a low cost of living. Annually, you’ll only need to spend $33,676 to enjoy a pleasant lifestyle in Jackson. This, combined with the area’s Southern charm and culture make it an appealing option. Jackson is also currently undergoing revitalization, so you’ll be able to see the old merge with the new during this transformation.
2. Detroit, MI
Detroit is another place where you’ll see history and culture come together with modern innovation. Retiring to this city will only cost you $33,356 each year, which includes everything from housing to transportation. The metro area borders Canada, so you can experience the unique influence of the early French settlers. While parts of the city are sparse, the city is still a modern metropolis with plenty to offer to keep you entertained during retirement.
1. Birmingham, AL
Birmingham tops our list because we’ve found that it’s one of the least expensive cities to live in across all categories. Housing costs are a little higher on average than some other cities we’ve cited here, but Birmingham makes up for that with much lower costs in most other areas. Average healthcare costs for this city are comparatively low, as are the transportation costs. Birmingham capitalizes on this by offering modern, urban areas and attractions at more affordable prices than some bigger cities. Even as you stretch your dollars, you’ll find plenty of opportunities for entertainment or new experiences here.
This list showcases our top eight picks for affordable retirement choices in the U.S. While we’ve given you the best overall annual average costs, keep in mind that these can vary somewhat depending on things like your specific transportation needs (public or private) and your grocery budget. Your personal finance plan may be able to reduce these costs even more.
How To Pay For A Senior Living Community With Your Life Insurance Policy
It’s a common refrain: seniors who have always thought they would want to stay in their home as long as possible have a change of heart when they realize how convenient and enjoyable a senior living community might be. Oftentimes, however, there is a high, one-time entrance fee that can range from tens of thousands of dollars to hundreds of thousands of dollars. These entrance fees are used for future long-term care costs. Additionally, monthly prices for such facilities can range from $1,500 to $6,000.
Seniors may be drawn to retirement communities for different reasons—the availability social connections and arts and enrichment activities, the convenience of meals and other services, or the understanding that the regular upkeep of a house has become too burdensome. But since studies show that only about 3 percent of Americans buy long-term care insurance, the desire to move into an all-inclusive community can also bring plenty of financial uncertainty. Even those who have engaged in careful retirement planning are often unprepared for the mounting expenses, and long-term care becomes more expensive every year.
Enter the life settlement, an option for seniors who are holding onto life insurance policies they no longer want or need. By selling an unwanted policy for a payout larger than the surrender value, people over 65 can use the funds to help pay for the entrance fee and/or monthly costs of a retirement community. Life settlements can be the answer for those who find that their monthly income is insufficient to pay for the living situation that best suits their needs in their golden years. A life settlement serves seniors financially two ways: 1. by providing a sum of money to help meet expenses and 2. by removing the burden of paying regular insurance premiums.
It’s easier than ever for seniors to research life settlements and, if they qualify for a favorable sale, to walk through that process with a life settlement company like Magna. The first step is to use Magna’s simple life settlement calculator tool to determine initial eligibility, and from there an individual can schedule a phone call with one of Magna’s settlement specialists to learn more about the settlement offer and the steps to convert life insurance into a windfall.
If your senior living situation is less than optimal and the lack of resources has become a barrier to moving into that retirement community you have been researching, find out today if a life settlement might be the answer. Every day more seniors are learning that their old life insurance policy has hidden value that can improve their lives now.