Embracing the Benefits of Longevity: The “New Map of Life Report”

Over the last two centuries, the world has experienced significant progress in personal healthcare enhancements and medical interventions, leading to tremendous increases in life expectancy.  However, an unfair narrative has materialized whereby such gains in longevity have merely increased the number of seniors who do not contribute to economic growth.

A body of academic research is thankfully refuting this erroneous conclusion.

The “New Map of Life Report”

There is an “outdated assumption that older adults drag down economic productivity and drain societal resources,” says Abhinav Chugh, in a January 2022 article published by the World Economic Forum.  “We can challenge this notion by adopting a forward-looking longevity perspective on the economic potential of an age-diverse population.”

A landmark and comprehensive study was completed by the Stanford Center on Longevity that has created a buzz in the academic community.  It asserts that we are in the middle of “one of the most profound transformations of the human experience” and that this moment “calls for equally momentous and creative changes” in how we lead our lives.

The Stanford research demonstrates that age diversity is a net positive in America because the “speed, strength and zest for discovery common in younger people, combined with the emotional intelligence and wisdom prevalent among older people” creates extraordinary possibilities that our nation has never experienced before.

The report concludes with the following important warning: “It is not enough to reimagine or rethink society to become longevity-ready; we must build it, and fast.  Our collective challenge is to develop social innovations that will help people remain healthy and productive over the course of longer lives.  The policies and investments we undertake today will determine how the current young become the future old — and whether we make the most of the 30 extra years of life that have been handed to us.”

Seniors and Self-Care

There is a prominent role for government agencies to play in modifying the marketing message of longevity, but there are also areas of personal responsibility that must be embraced by seniors.  For example, one of the key principles established in "The New Map of Life" research is that longevity requires investments in health at every life stage so that we are better aligning health spans with life spans.  In other words, retirees need to make sure that they take care of their minds, bodies and souls to experience the rich benefits that come with greater longevity.

In addition, seniors need to be mindful of their personal financial behavior.  A longer lifespan requires adequate funding sources to cover the expenses of a fulfilling retirement.

For example, Clever’s “State of Retirement Finances: 2021 Edition” survey found that while retirees spent less money than they did before retirement, spending still exceeded what they earned.  Clever stated that retirees’ typical spending was $47,259, while the Bureau of Labor Statistics reports that retirees’ average post-tax income from all sources is $39,591 annually.

“The $7,700 difference between income and expenditures means many are falling behind despite living relatively modestly, as the majority of retirees live below the standard of living they experienced prior to retirement,” according to the survey report. “Nearly 60% of retirees said they struggle to pay for necessities and bills.”

It is essential for seniors to identify new, creative sources of liquidity to help fund the new map of life in front of them.

Creating More Cash Flow

Of course, the idea of building a cash bridge to pay for day-to-day expenses in retirement is not a new challenge for seniors.  One way to offset costs is to sell an existing life insurance policy that is no longer needed, affordable or serving its original purpose in a highly regulated market through a transaction called a life settlement.  

A life settlement enables qualified policyholders to sell their coverage to a “life settlement provider” — a licensed financial entity that purchases policies on the regulated secondary market for life insurance — in exchange for a lump sum cash payment.   It’s a great alternative to explore prior to canceling, surrendering, or lapsing a policy.

Life insurance is legally considered personal property and can therefore be bought and sold just like any other asset.  The life settlement industry has paid billions of dollars to consumers and according to the 2023 Annual Market Data Collection Survey of the Life Insurance Settlement Association (LISA), life settlement consumers received an average payment of 5.2 times more than the Cash Surrender Value (CSV) offered from life insurance carriers.

The funds obtained from a life settlement can be used to help pay for retirement expenses and accumulating health care bills, provide gifts to family members or charities or be allocated toward any other purpose whatsoever.

For more information about life settlements or to receive a free appraisal of a life insurance policy with an insured over 65 years old, then visit www.welcomefunds.com or call 877.227.4484.