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As we edge closer to retirement age, it is perfectly natural for us to be apprehensive about our financial future once we no longer have a paycheck coming in. After all, a number of factors have caused the future to appear bleaker than in years past. Social Security and its ability to finance the retirement of the baby boomers is in serious doubt with just about all the experts concluding that the fund will go bankrupt in the coming decadesit is not a question of if, but when. Healthcare costs continue to soar well beyond the rate of inflation with no apparent end in sight. Add to these two factors the fact that energy costs continue to rise at unprecedented levels and it is not hard to see why living on a fixed income seems like a very scary proposition for many people considering retirement.

If you are considering retirement but fear that your savings account may not be able to weather the challenges posed by the problems listed above, you may consider a life settlement as a means of supplementing your income and building a financial cushion. Now you are probably wondering exactly what life settlements are and how they can make you money and this is not surprising because many people do not even know how they exist. But, if you have a life insurance policy then it is definitely worth your time to read on and learn the advantages that a life settlement can offer you as you contemplate retirement.

Life settlements are also known as senior settlements and they are simply an agreement between someone with a life insurance policy and a company looking to buy that policy. The reason for this is because the death benefits paid in a life insurance settlement can be substantial. After all, anyone who has paid into a life insurance policy for a number of years has a policy with real value. The company offering you a life or senior settlement for your policy will give you a percentage of the total death benefits paid in a life insurance settlement in return for buying your policy and thus receiving those benefits upon your death.

Now maybe this percentage is 50% of the total benefits or perhaps even less. They cannot offer you the total amount or a figure that is too high because they don’t know how much longer you will livebasically, they are taking a gamble based upon your life expectancy. In between the time you sell your policy in a senior life settlement and the time in which you die, they must continue paying the premiums on that policy. Now although they may only give you 50 cents on the dollar for your policy, this figure is still generally higher than what you would receive if you would cancel the policy yourself and receive the surrender value. But, the fact is, the amount you would receive from a life settlement is almost always higher than the surrender value because these companies must offer you some incentive to sell your policy to them instead of just canceling the policy.

The money you receive from a senior settlement could be that financial cushion you need to feel secure about retiring in these very uncertain times. Retirement should be a time to relax and enjoy the remaining years you have in life, not a time when you are stressed out about paying bills and surviving on less than you need to be comfortable. If you have a life insurance policy, then give some serious thought to senior settlements because they just may be the solution you have been looking for in order to give you that added cushion that will make your remaining days far more enjoyable.

Jim Prescott, CPA business consultant for over 30 years specializing in small and medium size businesses that range from closely held to publicly traded companies. Jim is a Partner in CPA firm Prescott Chatellier Fontaine & Wilkinson, LLP that offers audit, accounting, investment advice, tax planning services, estate plans, pension plans consulting and insurance advice.
In addition to the CPA firm’s web site Prescott Chatellier Fontaine & Wilkinson, LLP you can find more information and Articles on Life Settlements at Insurance Settlement Review

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Ever wonder why your life insurance company doesn’t advertise life or senior settlements? It is actually in their best interest not to say a word because they make less money as a result of people that decide to go with the senior settlement route. But, still, just what is a senior settlement and how can it possibly be of any benefit to you?

Also known as a life settlement, a senior settlement is what happens when you sell your life insurance policy to a third party, such as a bank or similar financial institution. Basically, these life settlements are little more than lump sum insurance settlements that someone pays you for the death benefits your beneficiaries would receive upon your death from the life insurance companyonly you get this money while you are still alive! Confused yet? Don’t worry, senior settlements are only mysterious until you see how simple they truly are.

Basically, a company or individual investor pays you a percentage of the death benefits that your beneficiaries would receive when you die. They clearly cannot pay you what your heirs would receive in a normal life insurance settlement because they would not make any money doing so. Plus, these companies and businesses continue to pay the premiums on your life insurance policy until, well, the time of your death. They are taking a gamble on how long you might live so the younger you are when you enter into a senior settlement, the smaller the percentage is that they are willing to pay upon the total of your death benefits. So, what is in it for you and why even consider getting less money for your death benefits after paying those life insurance premiums for all those years?

The truth is that many of us buy life insurance when we are younger and less prepared for things like retirement. But as we age, we honestly tend to need life insurance less and less because we are generally better able to tend to our financial affairs than when we are younger. Upon our death, our loved ones have less to worry about at this time and therefore you may consider “cashing in” your life insurance policy. But, a senior settlement will generally payout much more than the life insurance company will give you in the surrender value. This is because, unlike senior or life settlements, the insurance company will surrender the money you paid in on premiums but will most likely not give you any of the money that they have made in interest off of your premiums over the years. A senior settlement, however, does give you some of that money and it will almost always exceed the surrender value paid by a life insurance company.

Senior settlements are not for everyone. But if you no longer need a life insurance policy that may have become obsolete and if you are looking to boost your nest egg or just have some more cash to invest for your retirement, you should consider a senior settlement. Senior, or life settlements, are not as mysterious as you may think and you will make out better than if you simply cashed in your life insurance policy. Just find out what your life insurance surrender value is and then shop around for some senior settlements and you will could be very surprised at how much more profitable they are in comparison. And just like any of your other investments make sure you know the real value of your life insurance before you sell.

Jim Prescott, CPA business consultant for over 30 years specializing in small and medium size businesses that range from closely held to publicly traded companies. Jim is a Partner in CPA firm Prescott Chatellier Fontaine & Wilkinson, LLP that offers audit, accounting, investment advice, tax planning services, estate plans, pension plans consulting and insurance advice. In addition to the CPA firm’s web site Prescott Chatellier Fontaine & Wilkinson, LLP you can find more information and Articles on Life Settlements at http://www.yourlifesettlements.com.

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