Today’s Life Insurance is a whole new world……
It was once both very difficult and cost prohibitive to buy Life Insurance in your later years. However in the past few years, the market for LI in the 70 + age group has soared……..
Why ? Here are a few interesting facts.
People are living longer and have the benefit of excellent medical care. this has generally made LI Companies welcome applications from this age group.
That being said, LI has been demonstrated to be one of the best ways to lessen the impact of Estate Tax costs,and to transfer wealth among generations.
Life Insurance has been shown to be not only Death protection, but a potentially very lucrative cash asset.(More on that in a minute)
LI premiums have actually gone down in the last few years, making the purchase of additional coverage affordable. Also LI purchased when a person was younger, may actually be less expensive today !
Policies that were sold in the past with high interest projections, may be in jeopardy of lapse. LI today can be purchased with a guaranteed Death Benefit to age 120 regardless of the future interest rates or mortality costs.
This opens the opportunity to exchange an old LI policy, for a new one with greater benefits and provisions.
The other opportunity in the LI marketplace today, is in the area of Life settlements.
People who have purchased LI in the past,for business or personal reasons may no longer need the coverage or may not want to pay the premiums.
Enter, the Life Settlement. In this case a third party, usually a Hedge Fund, Financial institution or private equity group will purchase the old policy for a percentage of the Death Benefit.
Although each case is different, a policy owner can potentially receive upwards of 50% of the policies Face amount( Death Benefit).
Not bad for a policy that in the past would be surrendered for it’s minimal cash value, or worse let to lapse with out any value !
The road of LI today is paved with potential gold, if you know how to mine it ….