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."
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."