A recent survey by AARP, “Top 5 Boomer Travel Trends for 2017,” found that retirees love to travel . . . and travel often!
Nearly every Baby Boomer surveyed (99 percent) planned to take at least one leisure trip in 2017, with an average of five or more trips staggered throughout the year. In fact, nearly half planned to do at least one international trip this year.
However, the vast majority of these trips (85 percent) had not yet been booked at the time of the AARP survey, so most of these retirees were still in the travel planning phase. Among those who identified a specific issue holding them up, the primary challenge cited was cost considerations (43 percent).
In other words: For many retirees, the travel bug is calling, but the travel fund is a little light.
If you’re one of the seniors caught in this dilemma between what you want to do and what you can afford to do, it might make sense to go in search of cash that may be hidden in assets you assumed were not liquid. Some common sources of those travel funds are home equity lines of credit, reverse mortgages and old-fashioned credit cards. These may be good options for some retirees, but each of them involves incurring debt that must be repaid at some point.
One creative source of cash that many retirees are discovering is an unwanted or unaffordable life insurance policy you may have purchased years ago. Like any other asset you own, a life insurance policy is your private property and can be sold if you choose. The sale of a life insurance policy, which is known as a life settlement transaction, can generate immediate cash for your travel fund and does not involve taking on any debt that must be repaid.
Seniors’ family members, who are frequently the beneficiaries of the life insurance policies, often encourage life settlements. If the death benefit isn’t needed anymore, many of them encourage their parents or grandparents to put the policy to work while they can and enjoy their golden years now.
Candidates for life settlements are typically aged 70 years or older, with a life insurance policy that has a death benefit or at least $100,000. The sale of a policy can bring you roughly seven times more money than the cash surrender value of your policy.
To learn more about life settlements, how they work and if you’re eligible, call the LISA office at (888) 521-8223 and we’ll be happy to answer your questions about options available to you.