Demand letter or other debts? Insurance settlements could help

For seniors struggling to make ends meet in the current economy, perhaps worrying about the next demand letter or collection phone call, one option may be life insurance settlements.

Frank Darras, a disability and long-term insurance attorney, recently offered consumers some pointers on the subject. People who hold life insurance policies sell them for a discount to investors, who pay them based on factors like health and their age.

"If you are a senior, considering [this type of] settlement, think long and hard about how the generated funds can be best used as you plan for your future. Always research carefully the company you are working with and know their financial history and get sound legal advice before taking such a big step," said Darras.

One other note for seniors to consider is that the recession and overall economic conditions may be contributing to a general reduction in the amount of money many of them will receive for selling their policies.

Such sales may be able to hold off the next demand letter or collections agent, but they don't necessarily guarantee one's longer-term financial needs.

To find your own affordable life insurance plan today, visit InsureMe.com.