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Selling an Unwanted Policy to reduce debt due to Rising Interest Rates

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A Senior couple selling a life insurance policy to pay off debt

As Seniors Brace for Rising Interest Rates, Selling an Unwanted Policy to Reduce Debt May Be Smart Move

Mar 23/2022

The COVID pandemic may be in the rearview mirror, but soaring inflation and rising interest rates are now in the headlights … and in the headlines.

Similar to how seniors were especially vulnerable during the pandemic, this demographic group in particular will be substantially impacted by the new set of challenges on the road ahead.

As inflation soars and the cost of living skyrockets, many seniors fear they will outlive their retirement savings.  Other retirees worry about the impact of rising interest rates on credit card debt and question how they will pay for medical bills incurred during the pandemic.

Sadly, rampant financial anxiety is replacing the pandemic as one of the top concerns facing retirees – especially those with credit card debt that will only escalate as interest rates climb throughout 2022.

Consequently, many financial advisors are urging their clients to pay off as much debt as quickly as possible. But finding an immediate source of cash to reduce debt may seem impossible for many seniors.

At Trust Life Settlements, we believe it’s important to remind seniors of the “good news.”  Selling an unwanted life insurance policy, known as a “life settlement” may be an option.

The proceeds from selling an unwanted policy (or a policy that has become too expensive to maintain), may provide the cash windfall you need to achieve financial stability or pay down debt.  

Financial anxiety is real among seniors  

According to a recent survey of adults by SeniorLiving.org that inquired about their greatest fears, running out of money during retirement was at the top of the list. Other key findings from the survey included:

  • Nearly 1 in 2 older adults' biggest financial fear was not having enough money saved for retirement.
  • 1 in 4 older adults fears they'll never pay off their existing debt.
  • Forty-five percent of people between 55 and 64 fear having high medical bills, while 39 percent of those over 65, including many on Medicare, have the same fear.

Seniors deserve to know their options

As we noted in a previous article, retirees who are feeling the pinch of rising inflation and market volatility involving the balance in their retirement investments, selling an unwanted life insurance policy can be a smart choice for two reasons:

  • Eliminates the financial stress of expensive premiums for a policy you no longer want or need
  • Provides a cash windfall for living expenses, pay off debt, for long-term care or medical bills

If there was ever a time when the liquidity from selling an unwanted policy would be considered a smart and prudent financial move, that time may be now.

Don’t be tempted to lapse or surrender your policy

As today’s inflationary challenges take its toll on the monthly budgets for millions of retired seniors, cutting back on unnecessary expenses is essential.  For many seniors, this may mean letting go unwanted life insurance policies. 

Don’t be tempted to surrender your policy for a small cash payment, or allow it to lapse, without consulting us first.

Why allow a policy to lapse if you could receive a substantial cash windfall that would help offset the loss of the annual premiums you’ve paid? There are no up-front costs or downside to selling an unwanted policy.

To see if you qualify for a life settlement and to receive a preliminary quote on its value, visit our website and complete the quick and easy qualification form.

 

Summary

Over the past 24 months, seniors have been pummeled with negative headlines that have them pivoting from one crisis to the next. The latest major headline being that the Federal Reserve Board has raised interest rates for the first time in three years to fight inflation and plans to raise rates six more times in 2022.

Financial advisors are urging clients to pay down their debt immediately in order to avoid longer pay-off periods for debt as interest rates spike.  While finding a source of cash to pay off debt may seem daunting, there may be hope for seniors over the age of 65 who qualify for a life settlement.

Contact Trust Life Settlements at 800-216-2513 or visit our website to complete our qualification worksheet.





BY ELIMINATE COSTLY LIFE INSURANCE PREMIUMS YOU CAN GET A LARGER LUMP SUM CASH PAYMENT TODAY.

Trust Life Settlements