Now that the US economy is in sight to enter a recession, it will have a disproportionately negative impact on seniors, according to executives at PolicyAppraisal.com, a consulting firm that evaluates life insurance policies for financial advisors to older clients who are considering selling to the secondary market.
The company recently reviewed the historical impact of the last recession on 2007 in older people and other demographic groups and found that adult-headed households from 55 to 55 years experienced a decline in median wealth of about $72,12 dollars.
PolicyAppraisal.com asserts that now is the time for seniors to look for opportunities to protect themselves against the threats of a recession, and that custom algorithms allow financial advisors and insurance agents to life of end the current market value of the life insurance policies.
“Some of this is simple arithmetic,” said Wm. Scott Page, head of PolicyAppraisal.com. “Older people had more wealth and therefore had more to lose during the last recession. However, the numbers don’t lie because older people also have less time to catch up“.
If there is a dramatic downturn in the economy, older people will be hurt, according to the company, that it sees a direct correlation to why a recession will hit them harder.
The company reviewed multiple studies of the Great Recession and found that older people are more at risk because much of their wealth is held in stock market shares and other savings that they use to generate current and future income. While young adults have most of their wealth in their homes, older adults depend more on the market.
“We are sounding the alarm because we are already seeing how the inflation crisis affects older people and a recession will be significantly worse,” Page said. “Now is the time for seniors to do a complete review of their assets and expenses to have a full understanding of how their current life insurance policy fits into their long-term goals.”
The potential sale of a life insurance policy on the secondary market could be the perfect solution for seniors who are worried about how they will live and recover from an economic downturn, says PolicyAppraisal.com.
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