Life Settlement Fund

"Life settlement funding options can be the difference between financial problems and financial success."

Life settlement funding options have become more and more critical for the many senior citizens that are being hit hard during this current economic downturn.  These seniors have many large life insurance policies that have been paid on for years.  Life settlement funding can help to maximize some of this money that is accruing.  Most of these whole life insurance policies were bought for the purpose of keeping wealth within the generations of a family or for a surviving spouse.  If the primary breadwinner dies, life insurance is an excellent tool for solving this problem.  However, the best laid plans can change.  Our current economy has many seniors in far worse financial positions than they did only a couple years ago.  Even those seniors who have done excellent financial planning and have researched all of their options are often lacking options to cover the many expenses that arise with age.  Weighing the pros and cons of a life insurance policy versus how much it costs, often leads people to feel that surrendering their policy and accepting the cash value given by the insurance company is superior to paying out money that they need for other expenses. 

"There is no difference between the security in selling a policy to an insurance company or to life settlement funding companies."

A lot of today's financial problems require alternative solutions, but the fact is that most seniors think that the surrender value is all they can get.  Adding in the financial pressure and the familiarity of their insurance company has led many people to take that cash surrender value without considering life settlement funding options that are out there.  The key fact is that more than half of all whole life insurance policies of clients over the age of 70 don't receive as much from insurance companies as they do from life settlement funding alternatives.  Life settlement funding is centered around the competition of the open market.  Third party life settlement funding companies compete to buy policies, which has proven to lead to better value for consumers than a quoted rate stated by insurance companies.  The problem is that if the half of the population that should choose a life settlement funding option chooses to take a cash surrender value, they are receiving less than they should.  All in all, that means the insurance companies are profiting at the expense of the average senior citizen.  In this economy, that doesn't benefit anyone but the shareholders of insurance companies.  On the other hand, if a person considers all of their options, including the life settlement funding choice, that profit goes into their pocketbook.  And it's statistically known that these differences can be astronomical.  There have been examples of five and six figure differences between the cash surrender value and what's offered by life settlement funders.  Fortunately, there are many companies that offer these, and the best life settlement funding can be chosen out of this group.  There is no obligation to any one company.  The expanding marketplace means that each life settlement funding option provider has to keep making competitive offers to stay afloat.  As this industry continues to expand, senior citizens will benefit.