During and post the World War Two Era there was an increased volume of infants born in the United States and other countries worldwide. This boom was probably caused by numerous factors. The fact remains that there was a population explosion during this time that the world has never before witnessed or probably may never witness in our lifetime again. The Insurance Industry at this point in time is starting to face one of the largest stress tests that it will ever face, since it came into being. This stress test can be called the Baby Boomer Factor.
The Baby Boomer Factor is caused by a cause/effect relationship. When the members of this group were in their younger years their primary function as it related to the Insurance Industry was to secure a policy for themselves and their family and make regular payments to keep their accounts up to date. This policy worked fine for everyone involved. This especially was good for the insurance companies because there were so many new policies opening up as a result of the increased population explosion.
Tons more money was being taken in as opposed to what was being paid out. Now as the years went by the so called Baby Boomer Generation got older and started to move into the older population of the world. As far as the insurance companies are concerned the role factors are starting to reverse. After the baby boom explosion there was a slowdown in the birth rate which lead to a decrease of new policies. In relation to what was coming in before in the way of account payments, payouts are starting to increase on a massive scale. This scale is in direct relation to the claims being filed by recipients of deceased baby boomer relatives.
Below are some of the factors that go into the equation of life insurance settlement:
* The Purpose of Life Insurance Companies – These companies’ sole purpose is to make a profit. They provide a service but their ultimate goal is profitability. Consider a reputable company such as HarvestACS.com to educate you on all you need to know about the subject, and also provide the speed to deliver your cash.
* Converting Life Insurance Policies to Long term Care – If a person needs to enter an assisted living facility, the financing of the facility can be covered by the exchange of services and payments for third party intervention.
* The Acceleration and Increase of Death Benefits – This allows people who are presently dying to receive payments against their death benefits.
* Assigning policies Gift Status – A person can sign the policy away to another as a gift, however the recipients will have to continue the payments.
* The Life settlement – If you have a policy and you are older than seventy, you have the option of selling the policy for an amount that is more than your surrender value. However, this amount will be less than the death benefit.
* Change From Term to Permanent – If you have permanent coverage this means that the insured has protection up to and until death comes. Term insurance expires at a point in time with a life settlement company.