Photo of two seniors walking with shopping bags, iStock.

In an unexpected turn of events, seniors aged 75 and above have unearthed a unique financial avenue to navigate their golden years through life settlements. Wm. Scott Page, CEO of WeBuy75, notes, “This innovative approach is gaining traction as the Federal Reserve grapples with challenges related to consumer spending, and it offers a promising alternative for seniors burdened by life insurance premiums. Policyholders are now exploring selling their existing life insurance policies, providing them with much-needed financial relief. WeBuy75.com is at the forefront of this growing trend.” We Buy 75 is helping seniors determine the value of their life insurance policies and educating them on options to bolster their financial freedom.

Seniors increasingly recognize the previously overlooked financial opportunities embedded in their life insurance policies. As the Federal Reserve takes assertive measures to combat inflation concerns by increasing aggressive interest rates, individuals aged 75 and older pay attention to life settlements as a calculated financial strategy. Using this method, seniors sell their life insurance policy in return for a one-time lump sum payment, providing them with the much-needed financial relief they seek.

In an interview with KRCW-TV Portland, Page pointed out the changing landscape in how people handle their finances. “Senior spending has increased almost 5% in 2023, and it’s absolutely baffling the Fed. But why are seniors starting to spend more actively? Life insurance companies don't want anyone to know they can sell their policy. It wouldn’t help their sales to make it well known that almost 85% of all life insurance policies never pay a claim. The goal of these companies is that a person pay their premiums until they can’t afford to any longer so that those policies lapse. We are educating seniors that life insurance is personal property. Seniors are realizing that they can sell these policies to make the most out of their golden years. Once they sell their policy, they no longer have to pay the premium and receive an influx of much-needed cash. We are seeing an uptick in seniors traveling, dining out, and making new purchases. They are reliving their best years their way.”

Photo of a woman greeting family in an airport, iStock.

Page has outlined several strategies to ”go about getting” the most out of life insurance investments. He emphasizes the importance of professional expertise in determining the actual value of a senior’s life insurance policy. One avenue seniors may pursue involves releasing policies held within family trusts. Policies that once posed financial burdens on these trusts can now be transformed into valuable assets. This is well-suited to the evolving financial needs of seniors. Sometimes, term life insurance policies can be converted into whole-life policies and sold in the secondary market, giving seniors the means to optimize their financial portfolios.

Richmond Fed President Thomas Barkin has acknowledged the remarkable resilience of consumer demand. This resilience is reflected in seniors’ increasing interest in life settlements.

Economists are currently studying the effects of the pandemic on saving and spending behaviors, noting a shift from impulsive to more considered financial decisions. Factors under examination include unemployment rates, wage trends, and equity prices. Though adjustments have been made in social security returns for retirees, that may not translate to an impactful amount. So, selling a life insurance policy has become attractive to seniors seeking a more comfortable lifestyle.

Recent discussions at the annual Fed conference in Jackson Hole, Wyoming, have likely delved into unconventional solutions. These discussions reflect the Federal Reserve’s ongoing quest to balance the critical objectives of curbing inflation with the necessity of fostering economic growth. The economy’s unexpected strength has engendered debates about fundamental parameters such as interest rates and unemployment, underscoring the potential for policy adjustments in the future.

Page notes, “For now, seniors aged 75 and above are charting their financial courses, with a growing number opting for life settlements,” This unique approach relieves them of the burden of life insurance premiums and aligns with the ever-evolving economic landscape. Much like the resilience demonstrated by seniors in their financial decisions, they continue to find innovative solutions that secure their financial futures.”