Life Insurance-Life Settlement

They fought over seas for their country during World War 2; they helped build this nation economy with their own hands. they worked very hard in cooperate America for decades and now they live off their social security , savings , investment and pension funds. God bless the senior citizen of America.When they were young they knew that one day they will have to retire. They tried to prepare themselves to that day and worked very hard for it. Now they know that their current income will not be enough to support them since they are going to live longer.With advance in technology and medicine the life expectancy of all American has been raised to a point where people now live 5-10 years longer than they expected.At the bottom line it means they need more money for retirement. How do they get more money? They have been out of the work force for years now. Whatever solution they may come up with, it must be legal and fast.

Today’s financial market offers many tools and programs to support those senior citizens and satisfied them with their needs. Program such as home equity loan and reverse mortgage have been around for a while now. The only problem with those programs is the price that the senior is paying. In most cases they lose their anchor asset, their home. Other tools would be annuities which will generate fixed income but require a deposit of cash. Life settlement, which is the sale of an unneeded life insurance policy and lately there is a new option that has to do with one home equity.

Equity key option provides an entirely new estate planning tool for high-net-worth individuals.
The Equity Key Estate option is designed for clients whose home is valued at $2 million or more, and who have a net-worth of at least $5 million.The senior home owner gets cash payment, based, in part, on how many homeowners are participating, and in exchange, they share any future appreciation with the Equity Key program.If one homeowner participates, Equity Key option usually pays 10% to 15% of the current value of the property today, and basically share the future appreciation with the client.If there are two qualified homeowners, and both choose to participate, they would collect anywhere between 20% to 30% of the property’s current value now, and Equity Key option program would receive 100% of any future appreciation.
Equity Key option program offers senior’s citizen a new way to address basic estate planning, including a shortage of cash.

Clients have used the funds they received to diversify their assets. Some can choose to invest in other real estate while some choose to invest in various financial markets.

Other Equity Key Estate clients may pursue an Equity Key option in order to experience the benefits of charitable giving now, while they’re in a position to witness the fruits of their generosity.

In conclusion I must say that as due to my interest in both real estate and life insurance I have found this program to be very beneficial to the senior. Since the whole option is being backed up with a universal life insurance where the bank is the owner and beneficiary of the policy and the senior act as the insured and a key man. Due to the fact, that the senior has been approved by a life insurance company and found to be insurable, will open few more option to the seniors. One option will be to apply for a life insurance policy and use the proceeds from the equity transaction to pay for it or to apply for a carrier approved premium finance program and finance the high premium. By doing so the senior will protect the estate from the estate tax and will have more money to live on while alive and more money will be left to the heirs.