Technology changes the way people live in all sorts of ways; for example, the shared economy that people use today could not have been possible without smartphones with built-in GPS systems.
Popular services like Uber, AirBnB, and the Lending Club couldn’t not have been the major hits they are now without technology moving forward. Most people have adopted to this new way of working with one another, even seniors who many say have trouble adapting to new things.
Obviously, seniors have definitely adopted and are loving the lifestyle so much that there are now markets targeting this generation alone. The growth of the life settlement market could be linked to the sharing economy because it allows seniors to make money off of assets they hold.
The following are three ways this market is similar to the sharing economy for those who wondering.
1. Seniors are Comfortable With the Gig Economy
There is no doubt about it, the shared economy has been linked to millennials from its inception.
Most people assume that it is a young person’s game, but that couldn’t be further from the truth. There are a number of seniors who not only use services like Uber but actually work for the company to supplement their income. This is one reason why seniors are more than ready to enter the settlement market where their life insurance policy can provide a large sum of money.
The circumstances of a policy owner could change at any time. Some may be having trouble paying their premiums. No one wants to stop paying and lose everything, and this is not necessary since there is a way out within the settlement market. Policy holders can simply find a settlement broker and sell their life insurance.
2. Policy Owners Can Make Money on Things They Don’t Really Need
One thing that companies like Uber have done for seniors is give them the opportunity to see that there is value in things that are not used much. For example, Uber allows seniors to make money off of their vehicles that are sometimes just sitting in their parkway most of the week.
Life insurance policies may be valuable when first purchased, but sometimes things change. For one, the insurance policy could not be as valuable as it once was.
Perhaps they do not have beneficiaries to worry about, or seniors may be faced with changing tax laws that make it harder to keep the policy. These scenarios could easily make the idea of selling the policy sound pretty good.
3. An Exciting Economy Creating Income
More seniors are being forced to stay in the workforce a lot longer than before. There are many reasons why this is happening, from the cost of living rising to Social Security Benefits simply not being enough. The sharing economy has given seniors an opportunity to make some extra cash on the side to supplement their income, making their lives just a little more comfortable.
This aspect also makes the settlement market attractive to seniors who might have thought they did not have a financial cushion to fall on in hard times. The reality is that seniors who have been funding a life insurance policy have a pretty good financial net should they consider selling this policy at the right price.
There are some seniors who use this money to fund their Golden Years activities while others use the cash to invest in order to create opportunities for residual income. Some seniors even use the money to deal with long-term care costs they might not have been able to afford before.
It is easy to see why seniors have embraced the sharing economy concept and the life settlement market, which both help them make money when needed.
Image Credits: Seniors for Life Settlements fromRawpixel.com /Shutterstock