August 21, 2020
The Silent Generation (1928-1945) is the name given to the generation preceding the baby boomers (1946-1964). This generation has over 20 million people in the United States. This generation was born during and after the Great Depression of the 1930s and World War II.
This generation fought in the Korean War and took the lead in the far-reaching changes in American society. They tended to marry early, and their children were many of the baby boomers.
Because of the hardships this generation personally saw or heard about, many in this generation are conservative with their money. Because of that, this group of Americans bought a very large amount of life insurance to protect their families and growing assets.
For those in this group, now is a good time to examine the needs for that life insurance. In general, children are grown and on their own. Homes are bought and mostly or completely paid for. For many, there is no significant need for large life insurance policies and premiums are increasing and becoming difficult to afford.
What can a person with valuable life insurance do with their policy? Among other things:
- They can abandon it, walking away from sometimes increasing and unaffordable premiums.
- They can surrender it, taking the cash surrender value of the policy in cash, from the insurance company. This only applies to certain types of life insurance policies and does not apply to term policies.
- They can reduce the death benefit to a more affordable level with a more modest premium.
- They can sell their life insurance (term, whole life, and universal life) in the life settlement market and get a cash payment.
Selling a life insurance policy is a regular thing. You might think that a policy with constant payments is an expense and not an asset but for the right person and the right policy, it is an asset, which can be sold like any other asset.
Q Life Settlement, working with companies regulated by the states in which they operate, buys life insurance policies. If you are older than 65 (and usually older than 75) and have a life insurance policy that can be kept in force to age 95 or 100 or beyond, and the death benefit is $100,000 or more, your policy probably has value. There are life agents, brokers, life settlement providers and others who can advise you if you want to learn more.