Life settlement funders

"The economy is particularly hard on seniors, but life settlement funders can help assist with that problem."

Life settlement funders have become more widespread across the country and the whole process has become easier and more cost-effective to the average person.  That is key given how far our economy has fallen.  Those who are looking to sell life insurance policies are usually senior citizens and many of them have been hit the hardest by the economic downturn.  To their credit, many senior citizens have been paying into whole life policies for years and years.  These seniors often bought these policies when they were much younger with the good intentions of passing a nest egg on to their children.  Other seniors have life insurance policies because they were the only breadwinner and wanted to protect their spouse.  Regardless, the family's finance may have changed to the point that there is greater value in cashing in the policy rather than holding onto it for someone else.  The nature of the economy has left a good number of seniors, even those who have planned well, in a much different fiscal situation than they ever expected. 

Life settlement funders are solely in business to assist these types of people who did everything correctly but were in the wrong place at the wrong time financially.  Examining their current balance sheet has left a lot of people resigned to the fate of surrendering their policy.  By doing this in years part, they would have to accept whatever small buyout the insurance company wants to present.  For a long time, before the advent of life settlement funders, buying life settlements on the open market wasn't an option. The prevailing rates existed because of a lack of competition and were dictated by what the insurance companies decided to offer. 

"Life settlement funders are increasing competition, which always leads to more money for the average person."

Times are different, as are life expectancies, and now statistics show that more than half of life insurance policyholders over the age of 70 would receive more from 3^rd party life settlement funders than they would from their own insurance company.  The hardest issue is that many people are extremely familiar and comfortable with their insurance company they've been dealing with for years and life settlement funders are new and foreign.  Regardless, in this economy, the key is who offers the largest buyout of the policy.  If the insurance company offers a better deal, then by all means someone should accept it.  If the life settlement funder does then that is the better option.  The important thing is that competition guarantees the consumer will end up better off in the long run.  The changes have occurred because there was no competition in the past.  There were no third party life settlement funders to force insurance companies to give a better deal than they would have when there were no other options.  But now because of better financial knowledge and internet marketing, life settlement funders are part of a multi-billion dollar industry that all respectable financial planners consider.  As time goes on and more people become aware of life settlement funders, the business will go to the more competitive companies.  Eventually the economy will recover, but the changes in the life insurance funding industry are permanent and they are positive fro the average person.