Seniors who need cash in the midst of the recession may want to consider selling their life insurance policies, some financial advisors say.
“Your life insurance policy could be your financial lifesaver,“ said Susan Bruno of Beacon Wealth in Connecticut. Bruno, a certified financial planner and accountant, wrote about the sales, called life settlements, for the Journal of Accountancy earlier this year.
The idea isn’t new, but the strategy could be particularly useful now, when policy holders may find paying insurance premiums are an expense they can’t afford or that they don’t have any other financial resources that can easily be turned into cash.
All the rules and regulations are intended to keep the transactions honest. But because there is the potential to get scammed, don’t get all your information about a potential payout from a life settlement company, said Helen Simon, a certified financial planner and professor at Florida International University.
Read: “A new lease on life insurance,“ an article from the MiamiHerald.com.