Health Insurance for Senior Citizens Baltimore MD

Senior Life Settlements

By
Ronald C. Peck - Principal
Fearless Wealth
February 11, 2004

How are seniors going to pay for their living expenses if the government or their family cannot help?

There is an additional choice for seniors with life insurance policies. Insurance policy holders have more choices than they think, let me explain.

Seniors are being handed bills for health care and living expenses that they may not be able to pay or be able to cope with alone. And with the government (federal, state and local) carrying the largest debt in history and the American consumer in equal pain, it appears seniors are having to cope with their financial problems on their own.

Many seniors have started considering new sources of income because of the changing living situations they have to consider. They are moving into Complete Communities Retirement Centers (CCRC’s), Retirement Centers, Assisted Living Homes, Residential Care Homes, Nursing / Rehab Centers and even Alzheimer Centers while having to pay prescription drug costs, and simply having to handle daily living expenses alone.

They do however; have a resource if they own a Life Insurance policy. A new secondary market exists for those individuals who may want to use their life insurance policy OR who do not need their policies anymore. The type of policies that can be used for this secondary market are; Whole, Universal, Variable, Term and Annuities.

Let me explain; Life Insurance is an asset just like a home, stocks, real estate, etc. There is build up value in these policies that people have been paying their premium on for the past 20 years. In the past any time an owner lapsed or surrendered a life insurance policy, they are giving up the built up value in that policy. And in actuality they were selling it back to the insurance carrier, who now does not need to pay out any monies.

There exists a better choice for life insurance policy owners today. It is called Senior Life Settlements.

Life Settlements is the purchasing of life insurance policies from seniors (> 65 years old) above and beyond what their cash value is estimated at from their insurance company. Typically an individual can collect one to five times more than their policy’s cash value. This higher price is what’s called the policy’s true market value.

Life Settlements can be an option for trusts, corporations and individuals. Typically individuals who benefit from this option are policy holders that have poorly performing policies, thinly funded policies, changing estate tax issues, or need cash for long term care.

The first step is to get an appraisal done by a funding source. Luckily this costs the policy owner nothing and there is no obligation. If you are curious about what your policy is worth or you are looking for additional cash please contact Ron Peck at 415-336-2355, email roncpeck@fearlesswealth.com. Ron Peck works with his son at Fearless Wealth, an investment education c...

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