More than 71.5 million baby boomers live in the U.S. and many face greater retirement challenges than retirees a decade before them.*
The Stanford Center for Longevity reports that baby boomers hold less wealth, carry more debt and will face greater expenses in retirement. This statistic supports why Life Settlements are a must have tool for top financial professionals who work with the retirement age population.
$200 Billion in Death Benefit Lapses Every Year
An estimated $200 billion worth of life insurance expected to lapse or be surrendered each year according to a study by Conning. The projected $200 billion in lapsed or surrendered policies each year is potentially worth $50 billion on the life settlement market, assuming a payout rate of 25%*.
Policy Owners Receive 4X More Money on Average
by Selling than by Surrendering their Policy
85 % of term policies and 88% of all universal life policies that are issued will expire, lapse or be surrendered* — resulting in the $200 billion statistic mentioned above. Policyholders are seeking options to ensure they can fund their retirement and may no longer want or need their policies, or they can no longer afford them and many are not aware that selling their life insurance policy is an option.
55% of Americans are not Familiar with Life Settlements
90% of seniors who have let their life insurance policy lapse would have considered selling their life insurance policy if they knew life settlements were an option. 49% of advisors cited lack of knowledge as the reason for not recommending life settlement options to clients*. (Insurance Studies Institute Survey) The lapse not only affects the client and their beneficiaries but it also puts advisors, as the fiduciary at risk, as lawsuits against advisors who have failed to show an alternative exit plan are becoming more prevalent by the day.
$4.6 Billion of Death Benefit was Purchased in the Life Settlement Market in 2020*.
Statistics show that most policies lapse or are surrendered without benefiting the policyowner. This is unfortunate, if more policy owners and advisors knew about Life Settlements they could maximize their life insurance as a financial asset. Policyowners can use the money from the sale of their policy to cover medical expenses, long-term care or to re-invest in other products to meet retirement goals
LifeRoc Capital is the trusted partner to advisors across the country, as a team we have settled over $10 Billion in face amount and have over 100 years of combined industry experience.
Contact us today at (888)662-0180 to learn more about how life settlements can help you and your clients maximize the value of their life insurance.
*Statistic Sources: (1)The Stanford Center for Longevity (2) Conning Life Settlement Report (3) Journal of Insurance Issues (4) Daniel Gottlieb & Kent Smetters (5) Harbor Life Consumer Survey (6) The Deal; Life Settlement Report (7) AARP Bulletin