Have you ever wondered what other seniors spend their money on? More importantly, have you ever wondered how they can afford certain things? You’ll find the answers to these questions and more right here! What is on your bucket list?
Why Is it Important?
What’s so important about knowing what seniors decide to spend their money on anyway? For starters, it’s important to other seniors because they want to have something to compare themselves to.
By looking at what other seniors spend their money on and how they afford the things they buy, you can get a clear picture of how effective your own financial decisions have been. So what do seniors spend their money on? Let’s find out!
Are You Prepared For Medical Expenses?
Although no one wants to spend thousands of dollars on medical expenses, that’s what many seniors have to do. Getting older can be challenging, and it’s common to incur frequent bills for medical care.
Another thing that many seniors spend their money on is college tuition for children and or grandchildren. Putting your children or grandchildren through college is a common aspiration of many grandparents. Of course, some do it out of necessity when their children or grandchildren don’t have the money to pay for tuition independently.
Sometimes it’s only a matter of $30,000 or so. Other times, especially when the student is attending a top school, tuition can cost over $60,000 per year. That’s a lot of money! Most grandparents are more generous than they’re given credit for.
Would You Like to Buy a Vacation Home?
Another thing that seniors commonly spend money on are vacation homes. Who hasn’t dreamed of having a second home? When you have a great pension and plenty of credit, it’s easier to qualify for a loan to buy a second home someplace warm. Then again, some folks prefer snowy slopes.
Those that are fortunate enough to afford a vacation home during their golden years have a lot of freedom. They can enjoy warm winters on the shores of the Caribbean Sea or live it up in the Rocky Mountains.
A vacation home can cost upwards of $100,000 and many vacation homes cost nearly half a million dollars. Then, of course, you have property taxes, landscaping expenses, and a possible caretaker fee.
Despite the costs, many seniors feel that having a vacation home is worth the expense. Imagine being able to escape the hustle and bustle of city life once and a while and enjoy long sunsets gazing upon open waters. That’s the kind of life that many seniors have in mind after retirement, and they’re willing to pay for it.
Do You Support Charitable Causes?
Charitable causes are prevalent among seniors. For many, donating to a charity of their choice is a way to make a difference in the world. When we get older, we start thinking about how people will remember us and what impact we made on the world.
Donating to charity is a great way to take up a noble cause and make a positive impact. Some seniors choose to donate to multiple charities. Oftentimes these charities share certain similarities.
For example, one could donate to several charities that serve to protect wildlife and the environment or helping the homeless and foodbanks. Whichever charity is important to you, know that you can make a real difference in the world.
What Do You Collect?
Millions of seniors are also avid collectors. Some collect classic cars; others collect rare old records or baseball cards. While it’s possible to collect for profit, many seniors collect for pleasure, meaning they spend money on collectibles that they do not intend to sell in their lifetime.
Who can blame them? Would you want to sell a classic ‘67 Corvette if you had one? People collect all kinds of different things. The important part about being a collector is that it means something to you. Without meaning, there is no value.
What Happens When You Have No Disposable Income?
So what happens when you’re retired and don’t have the money to spend on collectibles or vacation homes? There are options for you to consider. You could always sell valuables and family heirlooms, but people don’t typically prefer to take that approach for obvious reasons.
Have You Considered a Life Settlement?
An often overlooked approach could be to pursue a life settlement transaction. What is a life settlement? It’s a simple transaction where you could potentially make a significant amount by selling your life insurance policy to a third party. Most people are surprised to learn how their life insurance policy could be one of the most valuable assets they own.
The expert team at MRE Finance will walk you through the entire process and find a suitable buyer for your policy. MRE Finance has a FREE online life settlement calculator for you to find out your policy’s potential value in minutes by answering a few quick questions.
Selling a life insurance policy may be a good option for seniors 70 years or older or for individuals who are chronically or terminally ill. It may also be an option if your life circumstances have changed, your premiums are no longer affordable or you no longer have dependents who will need financial support after your passing. With increased uncertainty about the economy, many seniors are looking into how to sell their life insurance policies. Selling your policy for a lump sum cash payment can help you pay for medical bills, vacations, paying off a mortgage, or supplementing retirement while providing you greater financial security and peace of mind.
The policy owner transfers ownership of the policy to a licensed buyer known as a Settlement Provider in return for a cash payment greater than the surrender value but less than the total death benefit. The process is easy. You’ll submit an application with basic information about the policy and the insured person to be evaluated by the Provider.
Information you will need to provide is:
State you live in
Type of life insurance policy you have (whole life, convertible term, or universal life)
The cash surrender value (accumulated cash value) of the policy
Amount of premium you pay per year
Once qualified, the Provider will request additional information such as the life insurance policy documents and the medical records of the insured. The private information you provide is needed for the Provider to make a decision to purchase the policy.
MRE Finance respects your privacy and only works with licensed and reputable Providers. Selling your policy typically allows you to receive more money than if you surrender or terminate the policy with the insurance company for the cash value. If you stop paying the premiums and lapse the policy you typically will receive nothing. People often pursue a life settlement because they no longer need or can afford their life insurance policy and would rather have cash in their pocket. You can use the money received from a life settlement transaction however you’d like, including paying for long-term care needs, medical bills, or funding your retirement
The buyer/provider will walk you through the process and with the information you provide they are able to determine if you qualify and then make an offer to purchase your life insurance policy
Health questionnaire. You’ll need to complete a health questionnaire.
Authorization. The insured and the policy owner (if different from the insured) will need to provide authorization for the life settlement Provider to contact the insurance company on your behalf and access medical records.
Insurance Policy Documents. You will need to provide a copy of the life insurance policy. If you don’t have copies available, the life settlement Provider can request these documents from the insurance company with your authorization.
Evaluation. The life settlement Provider will evaluate all the details of the policy and medical records to help determine value.
Offer. With all the necessary information, the life settlement provider may proceed with making you a cash offer for the policy.
Closing. The closing process is the actual transfer of ownership of the policy to the Provider with all the accompanying documentation. During closing, your settlement payment will be placed in escrow until your insurance company has verified the change of ownership. Once verified, the escrow agent releases the funds and you receive your cash payout.
Overall the process takes approximately 6-8 weeks for settlement to be finalized with an experienced Provider, but timelines can vary based on who your insurance company is and the Provider receiving the needed documents.
A viatical settlement is a life settlement for those with a terminal or chronic disease. These typically are the highest valued policies – often 2 to 3 times more than a life settlement as the policyholder has a limited life expectancy. Viatical settlements are typically used by individuals who need to pay for medical expenses now, so they choose to forgo the full value of the benefit in the event of their passing and receive a payment now.
A Life settlement refers to the legal transaction between the life insurance policyholder and a third-party buyer known as a Settlement Provider for an upfront payment. Life settlement cash payouts are typically higher than your policy’s cash surrender value but less than the total death benefit of the policy. Some of the reasons why people choose a life settlement include; unaffordable premiums, medical bills, supplementing retirement, emergencies, or if they no longer need the policy for their dependents or other personal reasons. A life settlement is usually a better alternative to lapsing or the surrender of a life insurance policy.
Address: 1719 Route 10, Suite 233,
Parsippany, NJ 07054