Survey Shows Over Half of Retirees Are Concerned Savings Will Not Last

image Golden Gateway Financial released survey data from a poll which showed a majority of those aged 62 or older are in a position to immediately benefit from life insurance policies that they currently own but no longer need.  Nearly half of the respondents also said that they were unaware that they could sell their unneeded life insurance for cash.

Through life settlement, or the practice of selling a life insurance policy for more than its cash surrender value, many of America’s senior citizens could realize an immediate financial benefit from their life insurance policies.

"Life settlement has historically been a financial tool reserved almost exclusively for the wealthy or those with financial planners," said Eric Bachman, founder and CEO of Golden Gateway Financial. "Now, as life settlement becomes more mainstream, more older Americans can better afford the retirement they desire and deserve."

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The survey conducted by Golden Gateway Financial and the Insurance Studies Institute included 500 respondents over the age of 62 also found that nearly 60 percent of the people polled were concerned their savings and overall net worth may no longer be enough to sustain them through retirement.

Additional observations from the survey include:

  • The majority of those surveyed (77 percent) were retired and 80 percent earned less than $75,000 a year in income
  • Twelve percent of those surveyed said they were concerned that they would no longer be able to maintain life insurance payments and risk a lapse in coverage
  • Thirty percent of respondents said they were considering returning to work in some capacity or remaining in the work force longer because of the current financial crisis

"The survey data shows that most people purchase life insurance presumably for good economic reasons and to benefit loved ones," observed Paul Siegert, president and CEO of Insurance Studies Institute. "But the data also clearly shows that this economy has put stress on their ability to continue paying premiums, or has led them to doubt whether the reasons to continue owning the policy remain valid."

New Survey Data Shows Life Insurance Offers Many Seniors a Way to Generate Income in Retirement

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  • Ahem, I’m from the dduck Studies Institute and I’m here because we recently did a really unbiased study for The Platinum Stairway Company. They want to help save you from economic distress (just like the government, you see). The following is a brief look at our conclusions regarding old life insurance policies (you can buy the full study for three easy payments of $29.95, plus a real good deal on the shipping costs):

    Why burden your kids and your accountant, or some other financial adviser, with a simple idea like selling your old, beat up life insurance policy. After all, the nice people said you would get much more than the cash value figure that you see on the latest policy statement. So, don’t go any further, except maybe to see if some other outfit will give you a better deal. Your kids probably would not want to pay the premiums even if they are the beneficiaries. Your accountant is way too busy anyway figuring out how to minimize peoples taxes and that insurance guy is almost as old as you are and probably would put the kibosh on the deal by telling you about all that gobbelgook about dividends and policy loans, and charitable gifts, and such. If you have a lawyer, he will probably try to rope you in to get that will again and a health care proxy too and ugh it will cost you a fortune. Some of your friends will tell you that the insurance business is a big racket and they never fell for it and who needs a nursing home anyway. They will most likely tell you to sell the policy and grab the dough (drinks on you).

    Our extensive studies at the Institute have questioned many people (mostly from our founders family, they are the most cooperative ones)and months of actuarial study (only interrupted by the last round call) back up our conclusion that too much checking and consulting can lead to a migraine. Our sister company, The Institute For A Clearer Head TIACH), advises against overtaxing ones brain at age 62 or older. For those age 75, and older, and still thinking they know the difference between a Reverse Mortgage and lottery ticket, TIACH advises a series of counseling sessions at our sister organization, The Institute For The Study of Misbehaving Seniors.

    Sorry, got to run now I am reading some of the 65 pages of law on Life Settlements from Vermont; it’s better than a sleeping pill.

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