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Survey shows many seniors are unaware of their option to sell life insurance in favor of life settlements 2010-04-30 A new survey reveals that many seniors are considering making changes to their life insurance policies in favor of life settlements. A report released by the Insurance Studies Institute shows that 73 percent of the 218 survey participants initially purchased life insurance to protect their beneficiaries, but their needs for life insurance coverage have changed. Fifty-one percent of participants were unaware of their option to sell life insurance policies, a process known as life settlements. "Consumers want to make educated and informed decisions, but the unknown aspects of selling a life insurance policy coupled with a lack of objective resources for information prevents many seniors from considering this option," said ISI president and CEO Paul Siegert. Many seniors who no longer have the need for life insurance allow a life settlements brokerage to sell the policy to investors for a higher price than the surrender value. This option allows seniors to relinquish income they have put into a policy they no longer need in order to devote more to their retirement income.  |
