Financial need drives Life Settlement market
As the baby boomers population reaches 71 nearing retirement age, many boomers lack the necessary funds to fully enjoy retirement without worries about finances. Roughly half (55%) of Baby Boomers have any retirement savings and 74% of those who do save are behind their goal of $260,000. Nearly 1 in 4 (23%) of these savers have less than $100,000 earmarked for retirement and medical cost continue to consume a large portion of boomers income.
Longer Life Expectancy creates a financial deficit
As retirees live well beyond age 75, their net worth decreases by ~$20,000 yearly. Given limited retirement savings, retirees will certainly need access to other sources of capital to fund retirement and health care needs. Limited Social Security payments and underfunded individual retirement accounts fail to bridge the financial gap facing the majority of baby boomers. Life Settlement can help!
Possible Tax Free capital needed for long term care needs.
Social Security & Pension fund supplemental income.
Flexibility of Retained Death Benefits options provide family peace of mind.
Exceeds cash surrender value offered by insurance companies.
Florida state regulators endorse Life Settlement as key to unlocking hidden capital. Florida Gov. Rick Scott signed into law a bill requiring life insurance companies to advise policyholders to consult life insurance advisers before making changes to their life insurance policy.
This Trend is Set to Continue
Florida has one of the highest senior/baby boomer populations in the United States and typically leads the way for other states by enacting laws designed to protect life insurance owners and policyholders. As more states adopt legislation requiring life insurance companies to inform consumers, the Life Settlement market will continue to expand.
This is great news for seniors and baby boomers looking to supplement retirement income by unlocking value in an asset few realized was available.
As more individuals seek to monetize their unwanted life insurance policies and investor demands continue for alternative assets non correlated to existing financial markets, the Life Settlement market is posed to maintain steady growth.