Inflation and Life Insurance

In the ebbs and flows of the financial markets, it can be difficult to forecast retirement expenses. Especially in the current economy, market volatility can make consumers feel a desire to minimize recurring expenses. 

For some policyholders, alleviating future premium expenses might make sense as inflation rates continue to rise. As the cost of gas, food and other everyday necessities increase, some policy holders may be faced with the difficult decision of what expenses to pay, and which expenses to cut. Paying for food and utility bills may take priority due to the immediate need of such items – leaving expenses such as insurance premiums to take a backseat. Similarly, affluent clients may seek alternative means of generating liquidity to maintain lifestyle instead of drawing from their nest egg or other assets. Before your client decides on their own to stop paying their premiums and lapse their policy, please consider educating them about the opportunity of selling their life insurance policy. The newfound liquidity that a life settlement brings has the potential to both increase cash-on-hand and decrease expenses by avoiding future premiums. 

To find out more about the benefits that a life settlement may be able to provide your client, please feel free to reach out to our team of experts to learn more, and see if a life settlement might make sense for your client.

Case Study

Meet Nathan

74-year-old male

$650,000 Universal Life Policy

Illustrated premiums to maturity of $35k/yr

ILS offer $260,000

Client received an offer of over 40% of face value and was able to avoid rapidly increasing premium expenses.