MayBe Hiding From You (NAPSA)—American seniors are postponing retirement, primarily for financial reasons. Unfortunately, many experience unexpected health problems and ultimately shorterlife spans, accord- ing to a recent report from Bloomberg— fortunately, you don't have to be among them. More seniors are exploring creative optionsto generate the cash needed to pay off bills, finance vacations or deal with health care expenses. Hidden Assets If you're over the age of 70, you may have an asset lying in a drawer right now that could generate immediate cash for your family—andnot even know aboutit. Explained Darwin M. Bayston, CFA, president and chief executive officer of Older Americans may havea financial resource they don’t evenrealize they own. life insurance policy, “You have options policies may get roughly four to seven times more money than the cash surrendervalue ofthe policy. “LISA is committed to making sure consumersare aware ofthe fact that their For example, one option might be be sold, just like any other asset or piece of property,’ added Bayston.“In all like- the Life Insurance Settlement Associ- ation (LISA), a nonprofit organization that promotes consumer awareness of alternatives to lapsing or surrendering a if you find that you no longer need or can afford that policy” to explore the possibility of selling that unwanted or unaffordable life insurance policy, rather than just letting it lapse or surrenderingit to the life insurance companyfor the policy’s cash surrender value. HowA Life Settlement Transaction Works The sale of a life insurance policy to a third party for more than the pol- icy’s cash surrender value is known as a life settlement transaction. The pol- icy owner gets a cash payment, while the purchaser of the policy assumesall future premium payments and gets the benefit upon the death of the insured. Candidates for life settlements are typically aged 70 or older, with life insurance policy that has a death benefit of at least $100,000. Seniors whosell their life insurancepolicies have value and can lihood, the life insurance company and the agent whosold the policy won't share that information on their own” In fact, one study found that 23 per- cent of professional financial advisers are actually precluded by life insurance companies from disclosing to consumers that they have the right to sell a life insurance policy they are aboutto lapse or surrender. Perhaps asa result, a sur- vey by the Insurance Studies Institute found that fewer than half of American seniors are aware ofthe optionofselling their life insurancepolicy. Learn More For further facts about life settle- ments, how they work and whether you're eligible, call the LISA office at (888) 408-3734 or visit www.lisa.org.
