Life settlements can provide financial security after an Alzheimer’s diagnosis

Clock June 14, 2021


June is Alzheimer’s and Brain Awareness Month. The Alzheimer’s Association estimates that 6.2 million Americans 65 and older are living with this disease. Of that figure, 72% are age 75 and older.

As more and more baby boomers reach this age milestone, the number of Americans with the disease will continue to rise, up to a projected 12.7 million people by 2050 – an increase of over 100% from 2020.

Alzheimer’s is a terrible disease with far-reaching impacts. One of the important but too-often overlooked effects of living with Alzheimer’s is a person’s susceptibility to elder financial abuse and fraud.

One study estimates that seniors lose $36.48 billion annually to financial exploitation, criminal fraud, and caregiver abuse. Those living with Alzheimer’s are at an increased risk of falling victim to this behavior.

Even when there is no malicious intention, seniors with Alzheimer’s and other forms of dementia may make more impulsive decisions regarding finances, including sometimes making excessive purchases that they subsequently don’t recall.

Without close monitoring by a trusted family member or friend, the situation can escalate and leave the individual and their family in dire financial straits.

If one has the means, they can hire a financial manager to assist them with managing their assets. Another option is to purchase an immediate annuity which will ensure a regular monthly income which they can’t outlive.

The income annuity is especially attractive as someone can live up to 20 years after an Alzheimer’s diagnosis.

One way to fund a solution like those mentioned above is through a life settlement – the sale of a life insurance policy for more than its cash value. In fact, life settlements pay out an average of more than 4x a policy’s cash surrender value.

Life settlements are an excellent way to help seniors, and particularly those who have received an Alzheimer’s diagnosis, avoid elder financial abuse and fraud. Instead of worrying about their retirement funds, seniors and their loved ones can have peace of mind knowing their financial security is indeed secure.

Financial advisors should be sure to discuss life settlements with their clients to make sure they have the information they need to make an informed decision about securing their financial futures.

To learn more, contact Lighthouse Life or speak with your existing Lighthouse Life representative today.