Life Insurance costs

Cost of Insurance (COI) Skyrockets – Seniors Seek Life Settlements

In News by ngriffin360

Changing Economic Trends Push The Life Insurance Settlement Industry Forward

It appears that economic trends are percolating down to the insurance market.  With prolonged low interest rates, many insurance carriers have begun to add some shock to the market.  Over the past year universal life premiums have been on the rise. This increase of cost of insurance, or COI, has been a blow to many seniors on limited or fixed budgets. These shifts in the market, along with the fact that upwards of 60% of policyholders do not fully understand why they purchased their policy, has pushed many to explore life settlements.

Since the inception of universal life policies, and for over 30 years, insurance carriers have worked to keep the cost of insurance (COI) from increasing.  This is significant. Since the year 2000, the sale of universal life products rose from a quarter to a third of all policies sold. This perfect storm of chaotic swings in the stock market, increasing living costs, and a growing segment of the population transitioning to long term care, has resulted in double digit growth in the life settlement market.  Yet, the main drawback to this shift in market trends is lack of education.

The life settlement market, although over 100 years old, is still only understood in dispersed alcoves of the financial planning market.  With over $3 billion in annual transactions, the life settlement market is robust and growing. However, seniors and most financial planners are still in need of education to understand the intricacies of the market.  Identifying the key factors as to why an individual may wish to explore the options of life settlements, and facilitating these transactions, is just the start.  The process of working with providers and obtaining the best valuation in the secondary market is a necessary skill which delivers the best service for the policyholder.

Liberty Universal Life Settlements seasoned network is here to assist you with this education process.  If you are a senior looking for liquidity to fund long term care or change of life situations, contact us today for a free consultation on your options. For those of you in the financial planning profession who are looking to better understand how life settlements can be integrated into your quiver of planning options, please reach out to our team.



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