New Florida Life Settlement Legislation – Good News for Seniors!
Life Settlement gets a boost in Florida! The State of Florida passed important life insurance legislation leading the way for other states to provide additional consumer protection measures as well. Florida enacted a new law designed to combat insurance fraud and protect seniors and their financial advisers. The new bill HB 1077 requires “a life insurer shall provide an individual life insurance policyholder with a statement informing him or her that if he or she is considering making changes in the status of his or her policy, he or she should consult with a licensed insurance or financial adviser.”
How this bill helps Florida Seniors with Life Insurance?
Florida maintains the largest population of seniors and Baby Boomers in the United States. Overall, Seniors across the nation have failed to provide adequately for their retirement financial needs. With social security provide a small fraction of living expenses, The State of Florida needs significant alternatives to helping seniors face retirement.
This bill is a huge step towards enabling seniors to access much needed funds to provide for their financial security.
LISA.org plans work to develop additional life insurance resources for those policy owners looking to make a change to their life insurance policy. LISA.org is voice of the Life Settlement industry working with over 90 firms including life settlement brokers, providers, investment firms, law firms all centered in the Life Settlement market with focus on
Maintain the policy through loans, using the policy or its cash surrender value as collateral.
Seek an accelerated death benefit.
Convert the policy to a long-term care health insurance policy.
Assign the policy to someone as a gift or to a non-profit organization as a charitable contribution.
Sell the policy through a Life Settlement transaction.
Life insurance is a personal asset owned by the policy owner and can have considerable value beyond the cash surrender value provided by the insurance company. Each year more than $100 billion worth of life insurance is lapsed or surrendered back to the insurance company without compensation to the policy owner. Insurance company’s fortunes are made by the expectation that over 90% of insurance policies lapse without payment of the death benefit.
What is the Florida Life Settlement Trend?
As the baby boomer population enters retirement age, over 76 million Americans are looking to supplement an under funded retirement portfolio or perhaps supplement long term care cost. Roughly half of all baby boomers have no retirement savings at all.
10,000 baby boomers are joining the retirement community each day and make retirees are completely unprepared for longer life expediencies or long term care cost. Social Security and Medicare/Medicaid payments provide little additional benefit barely keeping pace with the Federal Poverty Guidelines.
Seniors are in need of additional options. Life Settlement provides options many seniors have overlooked and thanks to this new legislation, many seniors will be better equipped to explore if Life Settlement is available to them.
The Florida ruling scores a victory for Florida and consumers will benefit by having focus on a much needed asset which might provide value as they look to supplement their income needs.
Florida Retirement Benefits exceed $76.959 Billion Yearly!
Millions of Florida Seniors live exclusively on Social Security to cover their monthly expenses and health care. The average Florida retiree receives about $1,400 of social security benefits monthly. This means the average Florida senior is living on only $17,000 for the entire year to cover rent, food and most importantly health care cost.
While the social security model was originally designed as a supplement to retirement income, many seniors today maintain little or no additional retirement assets.
This is where the new Florida Life Settlement Legislation will help all Seniors. Many seniors are continually paying rising Life Insurance premiums which reduces their disposable income or funds available for health care cost. This new bill HB 1077 will enable many millions of seniors to cash in their Life Insurance policy for Cash through a Life Settlement transaction.
LARI Life Settlement works directly with many Life Settlement Brokers who can help navigate the complexities of a Life Settlement transaction and Life Insurance rules and regulations. This new legislation is one step towards helping retirees fund a healthy lifestyle and enjoy all that Florida has to offer.