How Life Settlements Can Help Pay for Increased Living Costs Due to Inflation

Clock September 22, 2022


30-second summary of How Life Settlements Can Help Pay for Increased Living Costs Due to Inflation

Did you know you can benefit from your life insurance while you are living? Selling a universal or whole life insurance policy (and sometimes, even a term life insurance policy) can be an excellent way to fight inflation and live the life you want in retirement.

In this article, we’ll provide an overview of how life settlements can help pay for increased living costs in three ways:

  1. Increases income
  2. Reduces expenses
  3. Replenishes your nest egg

If you have any questions, you can contact us, and one of our experienced life settlement specialists will be happy to help you.

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Inflation is affecting everyone. Whether it be a young family struggling to keep up with the rising costs of groceries and clothing for their children or a senior living on a fixed income who is having trouble paying their electric bill, people are looking for solutions.

One of the solutions some older adults are turning to is filing for Social Security benefits early while continuing to work. A recent survey by Nationwide Retirement Institute found that .

While this may seem like a good short-term solution, taking Social Security benefits early can significantly reduce the lifetime payout –  

Instead of taking their Social Security benefits early, an increasing number of people are using life settlements to pay for their rising living costs. According to the Life Settlement Report by the Deal, just under 3,000 life insurance policies were sold by policyholders to life settlement providers in 2021 for over $4 billion.


3 Ways Life Settlements Help Seniors Live Comfortably Despite High Inflation

With consumer prices up 9.1% over the year ended June 2022, the largest increase in 40 years, many seniors are turning to life settlements to help them maintain their standard of living and provide peace of mind. Life settlements help accomplish this in three ways:


  1. Increases income

The sale of a life insurance policy through a life settlement results in the seller receiving a cash payment, which will supplement a senior’s Social Security benefit and any other retirement income they may be receiving.

This lump sum payment can be used not only to pay down existing debt, but also to cover anticipated future expenses.


  1. Lowers expenses

By selling their life insurance policy, a policyowner reduces their monthly expenses by eliminating the premium payment.

This money that was being used to pay for an unneeded or unwanted policy can now be used to help pay for monthly living expenses or for special purposes, such as helping a grandchild pay for college, taking the trip of a lifetime, or offsetting assisted living costs.


  1. Replenishes your nest egg

Because of inflation, many people have had to tap into savings or retirement plans they were attempting to conserve for the future. They’ve had to liquidate assets like dividend-paying stocks that haven’t provided enough of a buffer against inflation.

A life settlement can replenish savings and money market accounts, purchase income-producing assets like bonds, and re-establish the secure feeling everyone desires of having enough money in reserve in case of emergencies.

*Lighthouse Life does not provide investment or financial advice. If you have questions about your finances, please speak to a financial professional.


 Explore a Life Settlement Today

If inflation is taking a bite out of your lifestyle or you’re concerned it soon will be, it may be time to explore a life settlement. Complete our short today and see if you qualify for a life settlement through Lighthouse Life.

We’re here to answer all of your questions about life settlements. Contact us to learn how selling your universal or whole life insurance policy can help you live comfortably despite rising inflation and economic uncertainty.


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