Many Baby Boomers are cashing in life insurance policies to help pay for retirement. These transactions are called life settlements, and they have become popular in recent years as an alternative retirement vehicle.
In a recent survey, conducted by International Communications Research, 79 percent of respondents said they felt their insurance professional and financial planners should be informing their clients about life settlements as a means to fund their retirement, rather than just letting their policies lapse. More than half of those surveyed expressed concern they would have to continue working past the age of 65.
"Many people didn't know selling their life insurance policy was even an option, however, boomers are demanding more education from their financial advisors," said Wm. Scott Page, president and CEO of The Lifeline Program, a life settlement provider that commissioned Internal Communications Research to survey sentiments regarding retirement, life insurance and Baby Boomers’ familiarity with life settlements.
The Lifeline Program survey results also suggest that Boomer confidence in being able to retire at age 65 is waning. An Associated Press study last year reported 44 percent lacked confidence in being able to retire, while the ICR study pegs that number at about 55 percent.
Founded in 1989, The Lifeline Program offers life settlements and financial planning options to retirees.