Seniors Are Foregoing Millions In Life Insurance Payouts

Recent research shows that American seniors are passing up on millions in life insurance coverage. Industry publication Life Health Pro reported on new research which was recently unveiled at the Fifth Annual Institutional Investor Life Settlement Conference Americans. The research showed that in total, Americans ages 65 and older forfeit $112 billion in life insurance benefits each year, primarily by lapsing or surrendering their life insurance policies.

Based on available research from 2008, experts have concluded that more than 250,000 universal and variable universal policies were lapsed my senior policy holders during that time. The total Face value of these lapsed policies totaled approximately $57 billion. According to the report, when term and whole life policies are factored in, the number of lapsed policies exceeds 1.1 million. The face value of all forgone life insurance policies amounts to over $112 billion.

Experts suggest that if data was available for 2014, the amount of lapsed policies and foregone payouts would be even greater. So why do so many seniors relinquish their full life insurance benefits?

Some studies show that most clients simply don’t understand their continuing need for life insurance, while other research suggests that many policy holders forfeit their full benefits because they don’t understand their options. Only six states have passed consumer disclosure laws requiring that providers inform life insurance policy holders of alternative options available to lapsing or surrendering a policy. One option available to many older policy holders is life settlement.

Life settlement is the process of selling a Connecticut life insurance policy to a third-party investor. These options are often particularly useful when the policy holder needs access to their benefits rapidly. During a life insurance settlement, a policyholder transfers the ownership of that policy in exchange for an immediate cash payout from the buyer. This options is most commonly available to policy holders ages 70 or older, with a life insurance policy that has a death benefit of more than $100,000.

When it comes to navigating Connecticut life insurance, it’s best to work with a knowledgeable local Connecticut insurance agency you can trust. At Byrnes Agency, we can help you decide the type of life insurance CT policy that suits your needs. Our life insurance specialists can help you find the right type of policy so you don’t buy more or less coverage than you and your family really need. Please contact us today at one of our various locations throughout Connecticut to learn more about our operation and all our offerings.

If you’ve enjoyed what you’ve read here and would like to know when we’ve published a new blog post, please “like” us on our Facebook page, and share this with your Connecticut neighbors. 

Dayville Office

Phone: (860) 774-85
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

…………………………………………………………………………………………………………

Norwich Office

Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

…………………………………………………………………………………………………………

Woodstock Office

Phone: (860) 928-7928
1226 Connecticut 169
Woodstock, CT 06281
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm