Aging and end of life issues
excerpt from: http://en.wikipedia.org/wiki/Baby_boomer
As of 1998, it was reported that as a generation boomers had tended to avoid discussions and planning for their demise and avoided much long term planning. However, beginning at least as early as that year, there has been a growing dialogue on how to manage aging and end of life issues as the generation ages. In particular, a number of commentators have argued that Baby Boomers are in a state of denial regarding their own aging and death and are leaving an undue economic burden on their children for their retirement and care.
Tranen comments:
Much has changed with the Baby Boomer population since 1998. As the “Boomers” have approached retirement age, they have begun to realize that pensions or social security are just not going to provide them with a comfortable lifestyle. Many have already sold their largest asset (their homes) and “downsized” to a townhome or condo. Now, with plummeting values, whatever assets they have remaining have lost a great deal of value with no appreciation anticipated soon. Since they ignored estate planning issues until very late in life they are left with few options to change their futures.
This is where Life Settlements can assist them.
One of the few assets of value that they have remaining, is their life insurance or life insurability.
The life insurance policies that they currently own have a minimal cash surrender value compared to the death benefit that the policy will provide upon their passing. A life settlement “fund” will pay them much more than the cash surrender value of the policy for naming the “fund” as the death benefit beneficiary. This can provide the “Boomer” with a lump sum now to help provide for their future needs.
It is also possible for them to purchase new life insurance policies that can be converted to a “fund” for future lump sum payments.
Baby Boomers in old age: Golden years or tarnished years?
excerpt from: http://www.aginghipsters.com/blog/archives/000346.php
Baby boomers are likely to extend midlife well into what used to be considered "old age." They will continue working longer, and responsibilities such as paying for college or having children at home will extend to older ages. They also are likely to enjoy good health and remain "actively engaged" longer than previous generations.
Economic inequalities are likely to become more important as the boomers age. The least well-off may face higher risks of unemployment and worse health at a time when policy changes are encouraging them to remain at work longer. Low wages and job instability also may mean they have less saved than previous generations.
Nontraditional families may pose new problems. Those who never married, had no children or were "absent fathers" may not be able to rely on family as part of their social safety net.
Tranen comments:
“Boomers” will have more financial needs than any previous generation. There are few options for this huge segment of the population that, for the most part, have not saved for their future and ignored estate planning issues. A Life Settlement may be the only option available to them, their last and only hope for a comfortable future. Perhaps that is why the life settlement market is growing at such an incredible rate.
Because the life settlement market is not dependent on real estate, commodities, stocks, bonds, etc. for its value, but is based on the ‘Law of Large Numbers,’ life expectancies, mortality and actuarial tables, this market tends to have greater value stability.
