Similar to the misconception that reverse mortgages are last-ditch tactics for cash-strapped retiree homeowners, is the notion that taking a life settlement in exchange for one’s life insurance policy represents an inability to pay premiums and an urgent need to raise cash.
An interesting study reported in the Journal of Financial Planning discusses the behavioral finance implications of seniors who are no longer in need of a permanent life insurance policy accepting a life settlement offer in exchange for their policy. “The financial planning community consider many alternatives to suggest to their clients,” study author David Smith, PhD, CLU, ChFC, CFP® explains, and the study is meant to guide advisors in assisting their clients’ decision-making when comparing economic proposals..While retirees may have purchased life insurance to pay off a mortgage at their death or to provide for grandchildren’s education, these needs may no long be present, and the policy represents an asset which can enhance income rather than continue to represent a cost factor. “If the planner is unfamiliar with life settlements, they should seek experts for assistance,” Smith cautions.
Just as the duty of a financial planner lies in helping help clients evaluate all available options for managing their assets might include accessing the value of life insurance through life settlements, housing wealth can be accessed through reverse mortgage financing. And, just as planners can seek guidance from life settlement experts, planners can seek out and recommend experienced reverse mortgage professional regulated by Housing and Urban Development.
While both life settlements and reverse mortgages might be sought after by retirees having difficulty covering their costs of living, high net worth seniors need financial planning guidance in using their insurance and housing assets to their greatest advantage.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to:www.nmlsconsumeraccess.org Equal Housing Lender