The case for life insurance as a high-inflation hedge

Each day we hear conflicting reports about the future of the U.S. economy. One day, it’s good news. The next day, bad. Politicians suggest everything will be fine and pundits opine that the negative talk could lead to a self-fulfilling prophecy. Analyses, analogies and predictions are all over the map. What we do know is what clients tell us: Their overall confidence is shaky, particularly among seniors and those with a shorter investment horizon.

Scott Page
Scott Page is an author, television personality and life insurance appraisal expert for

If you have been in the advisory business for more than a decade, this isn’t your first time at the pre-recession hoedown. You have seen these kinds of markets before and know what to do from a portfolio management perspective. But in this inflationary landscape, generating income for a client via their life insurance policy is worth a look. As clients get older, premiums go up and the need for life insurance often changes. Inflationary pressures are being felt at all levels, not just with fixed-income retirees. Even high net worth investors are looking at the financial impact of their life insurance and wondering if keeping the policy in force still makes sense.

Here are reasons why a life insurance appraisal and eventual sale on the secondary market could make sense for your clients.

Eliminate premium expenditures and put more money under management
It’s common for high net worth seniors to pay as much as $7,000 per month to keep policies in force, and this is hard cash being pumped into a universal or whole-life policy. If the need for insurance has changed due to the death of a spouse, divorce or the children are grown, and the client is feeling financial stress, then selling the policy often makes sense. Regardless of

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