Using Life Settlements to Fund Retirement

At one time, retirement was something we all looked forward to, fondly referred to as "the golden years." Well, we still look forward to reaching retirement age, but not with the same zest that we once did. For many, the worry of where the retirement money will come from makes the thought of retirement scary. Whereas once we thought of retirement as the time in our lives when we'd vacation and spend time with the grandchildren, it's now a source of worry and apprehension about whether there will be enough funds to get us through it comfortably.

One option often comes to mind to help individuals prepare for retirement even if they think that they're not financially stable. Seniors now have the chance to take advantage of life insurance settlements to help them finance their retirement. Although years ago this would have been unheard of for seniors, it now may be one of the most viable ways in which they can comfortably enjoy their retirement. Because many senior citizens are too proud to resort to public assistance, life insurance settlements can be an option worth considering.

Years ago, people took out life insurance policies to give them security in knowing that their family members would be taken care of in the event of their death. Nowadays, however, the economy does not always the luxury of being able to take care of one's family as they would like. With a life settlement, the money is made available when the insured chooses to cash in his or her life insurance policy. This is done by selling the coverage for a lower amount than the face value of the policy. Though the settlement is less than the face amount, it is still large enough to provide for the insured through their retirement years, so that they will be able to live as they choose with no financial burden being placed on their families.

Many seniors don't like the thought of not being able to leave their loved ones a large life insurance policy to help them. However, this is often the only way that they can ensure they'll have the cash to get through their remaining years comfortably. Fortunately, there are still other ways to take care of the responsibilities that they feel they have. For instance, they can use a small chunk of settlement cash to start a burial trust fund. The family members may not end receiving very much money, but the burial won't be something that they'll need to worry about, either. The family members will also have the peace of mind that comes from knowing their parent or grandparent has the wherewithal to enjoy the final years of their life.

The process of obtaining a life settlement to fund your retirement starts with contacting a financial advisor or your insurance agent. Take your time and have the agent or advisor explain everything to you in detail and answer any questions that you may have. Only by completely understanding your options can you fully ensure that you're making the most appropriate financial decision.

blog comments powered by Disqus