Senior settlement - 8 Tips to help seniors avoid investment fraud and abuse

A senior settlement allows a person 65 years or older to sell their life insurance policy for cash before it expires or lapses. Moreover, it allows Seniors the opportunity to liquidate an asset which has already served its purpose and provides an opportunity for asset real location

Words of caution to seniors considering the senior settlement "sales pitch":

•  Don't be a "courtesy victim - Avoid unscrupulous, savvy senior settlement salesmen with big promises about money and high rates of return by selling life insurance policies

•  Check out strangers touting "strange" deals.

•  Always stay in charge of your money.

•  Never judge a person's integrity by how they sound.

•  Watch out for salespeople who prey on your fears.

•  Exercise particular caution if you are an older woman with no experience handling money.

•  Look for trouble retrieving your principal or cashing out profits.

•  Don't let embarrassment or fear keep your from reporting investment fraud or abuse.

Regarding taxes, seller beware - general opinion is that the purchase and sale of a life insurance policy is no different than the purchase and sale of any other asset. Check with a financial advisor and/or tax consultant before making any commitments or signing any documentation. Remember, when in doubt, make no promises or commitments, no matter how tentative. It is far better to wait and lose an opportunity than to take the plunge and lose everything.

Sergio S.Salani, Esq., Vice President at Peachtree Settlement Funding suggests that "Life Insurance agents and financial planners have a fiduciary duty to represent the policy holders best interest. They should perform due diligence in assessing and examining the marketplace for reputable senior settlement providers."

It is estimated that there are about $500 billion of life insurance in force (Wharton - "The benefits of a Secondary Market For Life Insurance Policies") today held by people over age 65. Even if one assumes that only 5% of this coverage involves insureds who might qualify for a life settlement in any given year, the market is still quite significant and it will grow fast. Starting in the next decade, the first significant wave of baby boomers will be over age 65. This coupled with lower estate tax rates should converge
to greatly expand the universe of potential policy sellers.

Furthermore, as the capital markets become educated about life settlements and the market’s enormous growth, the life settlement industry will attract more capital and thereby be able to provide expanded opportunities for policy owners. The life settlement industry is building credibility with investors, regulators and the general public every day as life settlements become a mainstream financial/estate planning technique."

What is good for the consumer is good for all of us in the Senior Settlement Industry!

Please call 1-866-730-4411 or click for your Free Quote.