One of the biggest fears that most seniors have is a loss of independence. The very thought of losing independence can put your stomach in knots. Here we will take a look at why this instills so much fear in the elderly.
What does loss of independence mean
Before discussing why seniors fear the loss of independence, let’s take a look at what it means to lose your independence as a senior. There are many ways in which a senior can lose their independence and it doesn’t always happen all at once. Most of the time an older person will lose parts of their independence gradually until they become entirely dependent on others to manage their lives. For example, one of the things that usually goes first is your driver’s license and ability to drive. Once you reach a certain age and develop eye problems you will no longer be able to drive yourself. This creates a big problem as it means that you will then become wholly dependent upon other people to bring you things that you need and take you to places that you need to go.The next largest loss of independence after losing your driver’s license comes when you can no longer take care of yourself at home due to health issues. At this point you will need to arrange for a care service that willsend someone regularly to help you accomplish basic daily tasks and provide assistance for showering, cooking, taking your medication, etc. Although no one likes the idea of depending on someone to come to your home to help you with what used to be basic tasks, it’s still one step closer to the fear of losing independence permanently. The single most frightening loss of independence a senior can experience is the need to give up living at home and move into a facility.
Why many seniors don’t want to live in a nursing home
Most seniors want to delay the point where they have to live in a nursing home for as long as possible and there are many reasons for this, including the fact that some nursing homes fail to provide competent or compassionate care.
Who wants to live in a facility with strangers and be constantly frightened, taunted, or robbed by unscrupulous staff members? No one wants that and yet that is the sad reality that some seniors are living in. Another reason why many seniors don’t like the idea of moving into a nursing home is the overwhelming sense of isolation. Getting to know people in a nursing home takes time and feels remarkably different from the familiar surroundings of your own neighborhood.
Losing financial independence
One of the worst things that can happen to being asenior, aside from losing the option to live in their own home, is a loss of financial independence. Oftentimes seniors are taken advantage of by relatives that employ various tactics to separate seniors from their own money. Sometimes it’s not taking the money itself so much as taking control of the money. When this happens, seniors can no longer pay for the things that they want or need because someone from their family has assumed control of their finances. Imagine needing to pay for medical costs without being able to access the money that you worked so hard to save after so many years. This scenario is all too common and creates isolation, dismay, faith and anger.
How to maintain your financial independence
Maintaining your financial independence should be a first priority. If you have been retired for several years, are running out of money, and don’t want to depend on your family to pay your expenses, you should consider a life settlement. Before going over what a life settlement is and how it can help you prolong your independence, let’s look at some other options.
First of all, you could apply for a reverse mortgage on your home. If the mortgage on your home is paid off, you can use a reverse mortgage to tap into your equity and free up cash. While this can be a helpful solution in the short term, it doesn’t pay very well in the long term. That’s because once you use the equity that you’ve been building for so many years, it’s gone. For example, if you sell your house after taking out a reverse mortgage, you will only get a fraction of what you could normally sell it for. Another option is to sell investment stocks you own. The only problem there is that unless you own tens of thousands of dollars in stock, the money you’ll raise by selling them will be limited and taxes will have to be paid
Why not just sell your house instead? Although selling your house can help you raise money, you’ll probably have to move into a smaller and less comfortable house. The whole point of maintaining your independence is to live more comfortably, not less.
So, what about that life settlement we mentioned earlier? A life settlement is typically a preferable option compared to taking out a reverse mortgage or selling stocks. A life settlement is a simple agreement in which you sell your life insurance policy to a third party in exchange for a cash payment. For those of you that are struggling to pay the bills, a life settlement just might be your ticket out of a tight spot. Once you sell your policy, you’ll be presented with a sum of cash. Aside from paying long-term capital gains taxes on the payment, you are free to use the money as you please.
Give MRE Finance a call
Now that you know more about the advantages of a life settlement and how it can help you retain your independence, you should be ready to sell. If you are unsure about how to go about selling your life insurance policy, you can count on the folks at MRE Finance to help walk you through the process with ease. We specialize in making it easy for seniors to sell their life insurance policies for cash.