Baby boomers are increasingly considering their insurance policies as a source for paying for retirement. They can sell unneeded life insurance policies for a portion of the face amount. This is known as a life settlement and according to reports it has become more practiced in recent years as a viable financial option for aging baby boomers.

Even Betty White is getting in on the action. The 90-year-old actress and recent SAG Award winner for the “Best Female Actor in a TV Comedy Series” appeared in a YouTube video about this concept. The video has received more than one million hits. “It’s the hottest program for spicing your golden years,” says White.

International Communications Research conducted a survey on the subject and found that 79 percent of people felt that life settlements was something insurance professionals and financial planners should be telling their clients about. More than half say they’re worried they’ll have to keep working after the age of 65. “Many people didn’t know selling their life insurance policy was even an option; however, boomers are demanding more education from their financial advisers, said Wm. Scott Page, president and CEO of The Lifeline Program. A recent Associated Press report found that 44 percent of baby boomers lacked confidence in being able to retire.

Most people don’t like to think about death and dying. And that’s when life insurance comes into play. But it’s important to safeguard your loved ones in the event of your passing. Knowing which policy to buy is a big decision and one some experts say people don’t spend enough time researching.

Once you do decide on a policy, it’s important to put the paperwork in a place where your loved ones can access it easily. “Consumers need to be familiar with their life insurance policies so they don’t overlook important features that could be critical to their livelihoods,” says Jeff Koll, assistant vice president of product development for Colonial Life & Accident Insurance Company.  ”Make sure you have a copy of your policy, that you know where you keep it and that someone else in the family also knows where you keep it.  You can always request a copy of your policy from your insurance company if you need it.  In addition, evaluate your insurance coverage from time to time to make sure it’s appropriate for your stage in life.” To help you in your decision Colonial Life created this list of commonly overlooked aspects of life insurance.

1. Waiver of premium.  This feature pays the premium of a policy if you become seriously ill or disabled and can’t afford the payments.
2. Accelerated death benefit. This feature allows you to receive cash advances against the death benefit of your policy if you’re diagnosed with a terminal illness. This can be a great feature to help pay for medical treatment and other expenses when they have only a short time to live.
3. Guaranteed purchase option. With this feature, you can purchase coverage at designated future dates or life events without proving you’re in good health.
4. Long-term care riders.  Some life products include this option, which allows you to use the benefits of your policy to pay for long-term care. But using that option means you will not receive your full life benefit when you pass.
5. Spouse or child term riders.  Life policies with this feature allow you to purchase term life insurance for your spouse or dependent child, up to age 26.  If you can’t afford separate policies this can be more affordable.
6. Cash value plans. This type of policy pays out upon your death and also accumulates value during your lifetime. It adds an investment element to your life insurance.
7. Mortgage protection.  This feature, typically found on term life policies, will pay your mortgage if you die.
8. Cash withdrawals and loans.  Many universal and whole life policies allow you to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low.  You can also use the cash value of your life policy to pay your premiums if you need or want to stop paying premiums for a period of time.  You must pay back the loan or your beneficiaries will receive a reduced death benefit.
9. Survivor support services. Some life policies offer services that provide objective financial and legal assistance to beneficiaries.
10. Employee assistance programs. This feature makes resources available to you for problems that can affect your personal and professional life.  Resources are usually free and help address issues such as substance abuse, stress, marital problems, legal concerns and major life events.

According to new research, workers are increasingly opting to forgo insurance benefits from their employers so they can instead have bigger paychecks. Nearly 40 percent of companies say it’s a growing trend for employees to opt out of benefits like pension plans, life insurance or income protection in order to take home more money.

Another 18 percent of companies polled say they’ve also seen a drop in the amount of money staff are willing to contribute to their pension. “We’re witnessing several concerning trends that would point to many employees currently taking a very short-term view of their financial situation,” Marketing Officer Marco Forato told The Press Association. “Although there’s no denying that a lot of people are struggling financially as a result of the recession, workers should only opt out of long-term financial benefits as a last resort. It is vital that employees instead seek to protect themselves and their dependants by having robust financial cover in place.”

Officials say that while the workers may be getting a slight cash boost, they could be laying the groundwork for future financial problems. Not only are they jeopardizing their retirement plans but if they become ill and can’t earn a salary, their dependents will also be in trouble. Research shows that roughly one in three British workers would only be able to survive less than a month on the statutory sick pay which equates to about $100 a week.

Five additional parents of US soldiers killed during duty have joined with another parent in a lawsuit against Prudential Financial. The suit claims Prudential profited from the dead soldiers’ policies by paying only a small amount of interest on life insurance benefits while holding on to a large portion of interest themselves. According to a report by the Associated Press, the families say bookkeeping misrepresented how the insurance beneficiaries could collect lump-sum payouts.

The case could eventually impact tens of thousands of soldiers’ beneficiaries who received payments. The Associated Press reported that company officials couldn’t address the current legislation, they say they are handling money properly. The suit deals with Alliance Accounts which are similar to checking accounts. Beneficiaries can write “checks” to receive some of the insurance money or they can get 36 equal payments each month. If they opted for the Alliance Account, beneficiaries received interest rates ranging from .5 to 1.5 percent. But the soldiers’ families say Prudential actually holds the money in a general account worth $2 billion and that the company earns five to six percent interest. Then they say the company keeps the difference.

In June of 2009 Michael Jackson was preparing for a comeback tour under a massive pile of debt. His home was about to be foreclosed on, and even utility bills weren’t being paid. But then on June 25, 2009 Michael Jackson passed away, a drug-related homicide according to authorities.

While the world will never know what kind of money Jackson could have made through his latest tour, in death he has brought in millions. According to CNBC Jackson’s estate has brought in nearly $275 million in the past year. That money has come from sales of everything from ring tones to merchandise. Debts have dropped to $400 million, down from $500 million before Jackson’s death. And the home that once faced foreclosure has been paid for in full.

Jackson’s life insurance policy wasn’t enough to pay the estate taxes, much of which still has to be paid according to reports. Two men– John Branca and John McClain– have been responsible for making sure Jackson’s wishes are met, his charities receive funds  and his children are cared for. Both Branca and McClain knew Jackson for years and say Jackson was focused on getting his financial life in order just before his sudden death. “We had seen Michael the week before,” Branca told CNBC. When Jackson died, Branca added, “It caught us by surprise,” but as CNBC reported, they were able to move forward with managing the estate because, “We had a game plan.” That plan, according to CNBC included four main goals:

1. Generate a lot of short term cash to pay bills.

2. Establish long-term projects that would generate regular cash flow.

3. Restructure debts.

4. Help Jackson improve his image.

So where is Jackson’s money coming from in the 12 months since his death? Only a small portion came from life insurance. The biggest segment was $125 from Sony in a 10-album deal that will take place over the next seven years. Another big chunk, $60 million according to CNBC, also came from Sony for the rights to “This Is It,” the film that grossed $300 million in the box office. Other funds have come from Mijac Music Publishing which owns the rights to Jackson’s songs, merchandise sales and book revenues. There are more projects in the works, but experts say this year may have been the estate’s most lucrative.

According to a new report by Inc, life insurance policies aren’t just for protecting families. They’re helping businesses too. If your business burns down you’re likely protected by insurance. But what if your key employee dies? Life insurance policies are a tool for small businesses who risk losing someone that is key to the success of their company.  “Depending on the type of insurance you purchase, the ownership structure, and beneficiary of the insurance, life insurance can provide financial protection, risk management, and asset protection,” says Josh Patrick, in an Inc report. Patrick is the founding principal in Stage 2 Planning Partners, a financial-planning firm that helps businesses.

These types of insurance policies can help during this time of transition. They can be used to hire new help or just keep the lights on and the doors open, according to experts. “The goal should be if in the event of the death of a major shareholder or other key person that the business can be able to continue with minimal financial interruption,” says Matt Tassey, according to Inc. He’s the past chairman of a nonprofit that helps people make smart insurance decisions. “You can’t do anything about the human interruptions,” Tassey told Inc. “But you can make sure the doors stay open, the light bill gets paid, and the mortgage gets paid.”

Deciding whether to purchase life insurance for your business can be a tough decision. Every business owner knows there are dozens of ways to spend extra money, but it’s important to weigh out the decision carefully. Think about what would happen if the company lost key employees and whether it’s a change the business could survive.  “Insurance is to insure a risk that you can’t afford, so if in your business one of your key people were to die, what would it cost you to replace that person? If you were to die, what is the chance for your business surviving? And what kind of impact would that have on your family?” Patrick told Inc. “If it’s more risk than you can afford, then protect yourself and your business with insurance.”

Insurance is meant to protect us in the event of difficult moments, but in Washington it’s what drove a man to kill, according to officials. A report by the Seattle Times says that a jury convicted 40-year-old Joel Zellmer in the death of Ashley McLellan. Ashley was just three years old at the time of her death in 2003. Officials say Zellmer told police he was taking a nap when Ashley, his step-daughter wandered into the backyard and fell into the pool. The girl’s mother was at work when this happened.

An investigation showed that Zellmer’s story wasn’t true. Investigators discovered that Zellmer drowned Ashley so he could get the insurance money from a $200,000 policy taken out on her life just three months earlier. Even more heartbreaking is the discovery that this is not the first time Zellmer preyed on young children with hopes of cashing in on insurance money. Prosecutors say Zellmer focused on luring in single mothers he dated so he could target their children.

According to KOMO, firefighters on the scene of Ashley’s drowning noticed something odd right away. They say Zellmer was calm, mostly dry and did not question Ashley’s condition. “One of the things that I remember thinking when I looked at her was that she wasn’t going to make it. You know, she just had that look of…we weren’t going to be able to revive her,” said Capt. Felicia Beluche to KOMO, one of several firefighters and paramedics who rushed to save Ashley McLellan. “(Zellmer) had, in my opinion, a visible detachment from what was happening.” The trial brought other cases to light where children suffered broken bones, burns and a near-drowning.

It may seem hard to believe, but life insurance salesmen are a hot commodity. Lots of companies are adding thousands of them to their payroll including an additional 3,618 agents at New York Life Insurance Co. and 2,340 agents at Northwestern Mutual Life Insurance Co. according to a report in the Wall Street Journal. Why the sudden run on jobs that so often are the punchline of jokes? With the economic crises, many people are now wary of the stock market and they’re looking for another investment with more and more turning to whole life insurance policies.

With many people out of work, selling insurance is a job they can begin fairly easily even though a few years ago they may not have considered it as an option. But it’s definitely not a get-rich-quick job. Statistics from research firm Limra show that 70% of agents earn less than $35,000 in their second year on the job. And sticking with it isn’t very common. Fewer than one out of five new agents are still selling insurance four years later. “You have to step a little out of your comfort zone,” says 48-year-old Catherine Calise, who started selling insurance for New York Life after ending her 18-year real estate career. “I’ll be in line at the grocery store, picking up dry cleaning, grabbing an iced tea at Starbucks, and I’ll be prospecting the person next to me” by striking up a chat.”

While selling life insurance is largely a commission-based job, companies do spend lots of money investing in new agents. Insurance companies spend thousands of dollars on income subsidies, medical benefits, and training.  “We know investing in agents takes a while to pay off,” says Mark Pfaff, a New York Life executive.

Wondering if you might make a good life insurance salesperson? Here are some important qualifications to have according to the Bureau of Labor Statistics:

• A State License: requirements vary by state, but typically you must pass several exams in order to qualify for selling insurance.
• Education: while a college degree isn’t required, some companies may prefer applicants with education in business, finance or economics.
• Continuing Education: Employers are finding continuing education more important as products offered change. Agents must stay up-to-date on tax laws and changes to government benefits programs in order to provide the best service to customers. Most states also require continuing education every two years in order for agents to keep their license.
• High Energy: To sell life insurance, agents need to have a lot of energy and enthusiasm in order to find new clients and meet their needs.

There are plenty of sources offering information on various life insurance policies, but do you know what actually happens when you buy it? This week my husband finalized a new life insurance policy and had to undergo some simple testing– which turned out to be a little more traumatic than he expected. He was told not to eat for six to seven hours before the testing and a nurse would come to his office to take a blood and urine sample. While attempting to draw blood, the nurse had a little trouble. After several attempts she wasn’t able to draw blood, but the entire process caused my husband to pass out– not once, but twice! Don’t worry, the nurse said this doesn’t happen very often, but in case you’re wondering what to expect when buying life insurance, here are some guidelines.

You will be asked to provide personal information such as:

• height
• weight
• date of birth
• habits such as smoking or drinking
• financial information

Telling the truth is important because if you lie and the company discovers it, you may be forced to pay a higher premium, or worse yet, they could cancel your policy. Most companies also require an in-person medical exam. During the exam you can expect the following tests or procedures:

• Blood Pressure
• Heartbeat check
• Record of height and weight
• Blood sample
• Urine sample

The medical professional will also probably ask you questions about your family medical history and your lifestyle habits. They’ll want to know about any activities you engage in that may affect your health like exercise, smoking, drinking, or even dangerous hobbies. All of this information helps the company to determine what type of a risk you are to the company and what they should charge you for life insurance coverage.

Anyone who runs a business needs to prepare for every eventuality. Unforeseen events in the business world can prove to be cataclysmic. One possible occurrence that must be considered is that of the death of individuals who are indispensable to your business. People die and business executives are no exception.