Page 6 - The Lifeline Program White Paper

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LIFE SETTLEMENTS
TO THE RESCUE
First, baby boomers are the best insured
generation of Americans of all time. Many
boomers have life insurance which was
purchased primarily to protect their spouses
and children. Others purchased it for estate tax
reasons. There are billions of dollars worth of
insurance policies held by baby boomers. A
recent estimate by Conning suggested that the
potential market for life settlements is more
than $177 billion.
Second, boomers need all the help they can
get to help fund retirement. The baby boom
generation, the 76 million Americans born
between 1946 and 1964, have begun to reach
retirement age. In fact, 10,000 boomers a day
reach age 65, but many of them have no
retirement savings. A recent Harris Poll
confirmed that 25 percent of boomers have
saved nothing. However, the dire retirement
picture for boomers is counter balanced by this
generation’s unprecedented investment in
insurance. We believe that life insurance, and
specifically life insurance settlements, can
come to the rescue.
Individuals over the age of 50 often reach a
crossroads regarding their life insurance. If they
Many seniors have never heard of life insurance se lements though these increasingly
common nancial tools may help them fund retirement. Created within the past 20
years, a life insurance se lement enables a senior to sell an unwanted or unneeded life
insurance policy for immediate cash. Life insurance se lements have become an even
more viable nancial option in recent years for several reasons.
S E C T I O N T WO