Why the Rich and Famous Are Buying Senior Life Settlements
Life is short and money is tight for everyone these days. Even celebrities have to make ends meet. These famous folk understand that their fortunes won’t last forever. They’re also smart enough to know that they’ll need to plan for their financial futures. If they wait until they’re retired and need elder care, they may not have enough time to save up a decent nest egg. Fortunately, there are senior life settlements. This is a great way for the rich and famous to leave a legacy for their future selves and their families. If you’re wondering what these are, keep reading.
What Is a Senior Life Settlement?
A senior life settlement is a contract you sign with your future selves. It’s a contract that lets you sell your life insurance policies and collect a guaranteed amount now. This guaranteed amount is what makes senior life settlements so lucrative.
With a standard life insurance policy, you’re only guaranteed to get back a portion of what you paid in. This is because a large portion of the premium you paid is the insurance company’s profit. A senior life settlement, on the other hand, is guaranteed to make you money.
What Does a Senior Life Settlement Include?
According to legal experts, every senior life settlement is different, but they usually include the following:
- The death of the seller (the person who signs the contract) will trigger the payment.
- The death benefit usually equals the face value of the mortgage on the seller’s property.
- The insurance company will pay the death benefit only if the seller dies during the term of the contract.
- The insurance company will pay the death benefit only if the seller dies during the term of the contract. A substantial upfront premium.
Why Are the Rich and Famous Investing in Senior Life Settlements?
There are a few reasons the rich and famous are investing in senior life settlements. Let’s take a look at a few examples.
- Wealth Protection - One of the main reasons the rich and famous are investing in senior life settlements is for wealth protection. You’re essentially locking in a guaranteed return on your money. This protects your assets and keeps you from having to transact as frequently as possible.
- Guaranteed Payouts - Another reason the rich and famous are investing in senior life settlements is because they guarantee a payout. If you sell your home for, say, $1 million, the insurance company will pay you the $1 million even if you die during the term of your contract. This is known as a death benefit.
How to Invest in a Senior Life Settlement
There are a few ways to go about investing in a senior life settlement. You can either buy a contract on your own or find a broker that specializes in this type of contract.
If you want to buy a contract on your own, you can visit any insurance company or look online. Be sure to shop around to find the best price. You can also use an online broker like TD Ameritrade that specializes in buying insurance contracts.
If you want to find a broker that specializes in senior life settlements, visit a brokerage like E-Trade. They have an extensive list of brokers that can assist you in all types of financial products.
Which Celebrities Are Investing in Senior Life Settlements?
Several celebrities have invested in senior life settlements, including:
- Melissa Etheridge
- Joan Rivers
- Eva Longoria
- Nicole Scherzinger
- Whitney Houston
Final Words
Senior life settlements are a great way for the rich and famous to provide for their future selves and their families. These contracts guarantee a certain amount to the insurance company in exchange for a fixed premium. If you’re wondering what these are, consider buying one today. You may be surprised by how lucrative these contracts can be.