Life settlements have emerged as one of the most viable and efficient financial solutions for individuals in their late 60s and 70s. It promises them financial freedom, giving them the chance to let go of an insurance policy that’s no longer useful.
What has driven the popularity of life settlements over the last couple of years? Let’s take a look.
Increased Divorce Rate
The divorce rate in the US has gone up over the years. According to the Centers for Disease Control and Prevention, the current divorce rate is 2.9 per 1,000 people, with about half the marriages in the US ending in divorce.
So, how does this affect life settlements? Well, it’s because most people tend to list their immediate family members, especially their spouses, as their beneficiaries when they get a life insurance policy. The increased divorce rate indicates that many individuals who named their spouse their beneficiary may no longer be still married to them. As a result, they’re not obligated to sustain the life insurance policy.
However, changing beneficiaries can often be an unnecessarily complicated task. In this case, the best option is to opt for a life settlement, through which you can sell your insurance policy to a third party. This will make the buyer the new beneficiary and will also save you from having to pay for a policy you no longer need.
Increased Premium Amounts
Let’s be honest, life insurance policies are expensive, as is continuing with them. The monthly premium payments can leave a gaping hole in your finances, making it more difficult for you to maintain a steady income or savings. Add to this the fact that these payments have just gone up in recent years and you’re looking at hundreds of dollars of premium payments each year.
In times like these, you have two options. You can either let your insurance policy lapse, i.e. have it terminated because of your inability to pay the monthly fee, or better yet, sell it for cash through a life settlement. This second option is far more useful and beneficial as it allows you to get a certain amount of cash upfront, while ridding you of the responsibility of monthly premium payments.
More Knowledge & Awareness about Life Settlements
Life settlements may have seemed vague and dodgy two decades ago, but as people become more aware of the benefits they offer, the skepticism has died down for the most part. Consumers have a much better knowledge of how life settlements work and what they entail. This has helped them make more informed decisions and opt for an option that frees them from life insurance premium payments.
Policies regarding life settlements are also incorporated into the state legislature, adding to their authenticity and reliability. Thus, with more knowledge about the process, life settlements have emerged as a good option for older individuals.
About Prosperity Life Settlements
Prosperity Life Settlements is a life settlement broker company that enables individuals to sell their life insurance for cash. They also offer a free life insurance settlement calculator.
Get in touch with our agents today to determine if you qualify for a life settlement.