This post is part of our series for advisors to pass to their clients. Knowing more about your clients’ needs will help you to better serve them. Aging doesn’t have to be scary, and we here at Ashar want to help you provide the resources that policy sellers need to flourish in this chapter of […]
This post is part of our series for advisors to pass to their clients. Knowing more about your clients' needs will help you to better serve them. Aging doesn’t have to be scary, and we here at Ashar want to help you provide the resources that policy sellers need to flourish in this chapter of their […]
get a secondary opinion® As seniors are living longer, many in their family are experiencing the anxiety of a parent outliving their retirement income. Healthcare costs, taxes and other unplanned expenses do cut into retirement income significantly, and a life settlement can bring in much needed income and is a welcome resource in many situations. […]
get a secondary opinion® With an increasingly aging population, the Secondary Market’s ability to quickly generate liquidity from unneeded insurance policies is becoming more relevant each day. To explore the benefits of the Secondary Market, seniors can get a SMV®, Secondary Market Valuation, on their policies through their advisors. With an SMV® advisors have valuable […]
Financial advisors must consider longevity in comprehensive planning. The first baby boomers turn 79 in 2025 (and the youngest will be 61 this year). According to the U.S. Census Bureau, 10,000 Americans are turning 65 every day (between now and 2030). By 2050, older adults will represent more than 20% of the population.
Likely, you discuss real estate, trusts, businesses, retirement funds, and other equities with your clients at length. But what about their life insurance policy? But what about their life insurance policy? Life insurance policies are assets, but not everyone thinks of it that way. This is why seniors leave such huge amounts of money on the table through lapsed or surrendered life insurance policies.
With retirement evolving significantly in recent decades, longevity has become a critical element of financial planning. With people living longer, continued inflation, and rising healthcare costs, outliving one’s retirement plan is a real concern. This is why addressing health, longevity, and long-term care must be an integral part of every retirement planning session with senior clients. Here are some ways to initiate these important conversations.
Historically, uncertainty in financial markets increases life insurance lapse activity. Think about your parents and the large number of baby boomers who are retiring every day or already retired. What are they worried about? According to the 2023 Transamerica Center for Retirement Studies Report, the most often cited retirement fears are declining health that requires long-term care (36%), Social Security will be reduced or cease to exist in the future (36%), outliving their savings and investments (35%), possible long-term care costs (30%), not being able to meet the financial needs of their family (30%), and cognitive decline, dementia, Alzheimer’s Disease (29%).
More than 9M policies lapse each year, and only about 3,000 life settlement transactions occur. How many more of those lapsed policies could have qualified for a life settlement – a buyout of existing life insurance for an amount greater than the cash surrender value and less than the death benefit? If only 1% of those lapsed could have qualified, that’s 90,000 policies resulting in billions to consumers over the cash surrender value.
As retirement has changed over the past several decades, longevity has become a vital component of financial planning. With people living longer, continued inflation, and rising healthcare costs, outliving one’s retirement plan is a real concern. This is why a frank discussion about health, longevity, and long-term care needs to be part of every retirement strategy session with your senior clients.
