As if seniors were not already aware, aging can be expensive. The June 9th, 2008 edition of BusinessWeek, page 11 presents some interesting data on just how much more seniors are spending than the "young" (25 - 34 year olds).
On average:
- Seniors spend more than 4x what the young do on Health Insurance
- Seniors spend almost 3x on Housing Upkeep
- Seniors spend more than 4x on Prescriptions
While seniors spend much less than the young on items such as Mortgages, rent and alcohol - the article also cites assisted-living facility costs have risen 25% since 2004, and the annual costs of nursing homes has reached almost $ 80,000 annually!
Consequently, it is absolutely critical that seniors are aware of all of their financial options including reverse mortgages, long-term care insurance and selling unwanted life insurance policies in senior life settlement transactions.
While "borrowing" against a home in a reverse mortgage has provided many seniors additional funds for necessities, donations or fun; a lesser known and often better financial option is the selling of unwanted life insurance. Eligible seniors can sell their un-needed or un-wanted life insurance policies for up to 4 times the cash surrender value or more. Unfortunately, many seniors are unaware of this option and surrender their policies for the cash value or even let them lapse!
As a senior citizen, you can sell your policy to a bank or to any financial institution. These institutions will then provide you a cash settlement that could exceed the surrender value of the policy. Senior settlements are also called life settlements and can prove to be a favorable option to letting the policy lapse.
Contact your attorney, certified financial planner or CPA, or go online and see what your policy might be worth using our free calculator.
Know your financial options - and offset the rising costs of a comfortable life.
Source by Chris Chidgey
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