Baby boomers appear to be taking a second look at their life insurance policies as an alternative financial solution to paying for retirement, where they sell an unneeded life insurance policy for a portion of the face amount. These transactions, known as life settlements, have become a mainstream practice in the past several years, particularly as baby boomers begin exploring all financial options to paying for retirement, including previously unconventional alternatives.
In a survey conducted by International Communications Research, 79% of respondents felt that their insurance professional and financial planners should be informing their clients about life settlements as a means to fund their retirement, rather than letting policies lapse. And, more than half expressed concern they will have to continue working past the age of 65.
"Many people didn't know selling their life insurance policy was even an option," says Scott Page, president and CEO of The Lifeline Program, a life insurance settlement provider.
The new survey suggests that boomer confidence in being able to retire at age 65 is waning. An Associated Press study last year reported 44% lacked confidence in being able to retire while the ICR study pegs that number rising to 55%.
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