After a lifetime of paying life insurance premiums, you may have reached a point where you feel the payoff on the other side of those premiums is no longer necessary. One option available to you is the option of a life settlement.
A life settlement allows you to effectively cash in/out life insurance policies for a value that’s greater than the current cash surrender value but less than the benefit that will payout upon your death. But, what do you do with the cash once you’ve received it? These five things are all viable options to consider.
1) Hobbies and Pets
The National Center for Policy Analysis reports that among seniors aged 75 and over, hobbies and pets accounts for a growing percentage of average expenditures – to the tune of nearly six percent annually since 1990. And why not? You’ve worked hard all your life. Now is the time to make investments in things that bring you joy.
2) Dining Out and Entertainment
According to SilverCross.com, seniors are spending, on average, nearly one-fifth of their income on dining out and entertainment. Seniors can maximize these expenditures by taking advantage of matinee shows and entertainments while others are at work, and by making use of senior discounts many restaurants and entertainment venues are happy to offer.
Now is the perfect time to start taking those dream trips or checking off items on your “bucket list.” Whether your dream trip is across the state or around the world, viatical settlements can help fund these fun-filled, dream-of-a-lifetime excursions.
4) Pay off Debt
While retirement is supposed to mark the golden years of your existence, the sad truth is that many seniors are living less robustly than they would like. An article in Senior Living states that “Nearly 40 percent of retirees have a problem with their level of debt.” What’s more, only 52 percent believe they could come up with $2,000 within one month to cover an unexpected emergency. A life settlement offers the opportunity to pay off this debt.
5) Save for Future Healthcare Expenses and Retirement Living
The Employee Benefit Research Institute offers a detailed look into the expenditures of seniors today. It has determined that health care and living expenses account for the top two expenditures by older Americans. Living expenses ranked first and healthcare coming in second accounting for 10 percent of yearly budgets for people between the ages of 50 and 64 and 20 percent for those over the age of 84.
Life settlements offer a valuable option for people who might need a little extra budgetary wiggle room, it is not meant to replace retirement savings or income. These are great things you can do with your settlement monies, and are a particularly attractive alternative than letting a life insurance policy lapse.