It’s the kind of desperation advisors never want to see, but should they do a better job of advising Canadians about an option a growing number of American seniors are turning to as a last resort?
It’s the kind of desperation advisors never want to see, but should they do a better job of advising Canadians about an option a growing number of American seniors are turning to as a last resort?
The life insurance settlement market – where seniors can cash in unwanted life policies for more than their insurer is willing to offer but less than the full death benefit – has experienced an upturn lately, thanks in part to the economic downturn of the past few years.
Baby boomers are financially ill-prepared for their own longevity, casting life settlements in a more positive light.
"All of a sudden, it's regroup time," Darwin Bayston, president and CEO of the Life Insurance Settlement Association said to Banknote. "We're making a tremendous effort to hit the reset button by creating greater consumer awareness."
When it comes to getting straight cash out of a whole, universal or convertible term-life policy, nothing short of dying beats a life settlement.
"Typically, you're able to get six to eight times more than the policy's cash value with a life settlement," Jeffrey McGregor, a retired top insurance executive who sits on the board of GWG Life, said to Banknote. "Do you want to take $6,000 from the insurance company or $36,000 from a life settlement? People need to know there is another option to just surrendering your policy."
The life insurance settlement market – where seniors can cash in unwanted life policies for more than their insurer is willing to offer but less than the full death benefit – has experienced an upturn lately, thanks in part to the economic downturn of the past few years.
Baby boomers are financially ill-prepared for their own longevity, casting life settlements in a more positive light.
"All of a sudden, it's regroup time," Darwin Bayston, president and CEO of the Life Insurance Settlement Association said to Banknote. "We're making a tremendous effort to hit the reset button by creating greater consumer awareness."
When it comes to getting straight cash out of a whole, universal or convertible term-life policy, nothing short of dying beats a life settlement.
"Typically, you're able to get six to eight times more than the policy's cash value with a life settlement," Jeffrey McGregor, a retired top insurance executive who sits on the board of GWG Life, said to Banknote. "Do you want to take $6,000 from the insurance company or $36,000 from a life settlement? People need to know there is another option to just surrendering your policy."
