There is never a bad time to give to the needy, even during a weak economy. In fact, a growing number of Americans who are not only learning how to spend wisely and consume less, are also learning how to give back to people who are in desperate need of a helping hand. How?

The answer might surprise you. Although they are smart with their money and live a more frugal lifestyle, many seniors are choosing to give back to the community through life insurance settlement transactions.

According to the Life Insurance Settlement Associate (LISA), a senior life settlement is the sale of a life insurance policy for more than its cash surrender but less than its net death benefit. In other words, a senior citizen can choose to sell his or her unwanted life insurance policy in order to receive a large sum of money.

Through a senior life settlement, seniors are authorized to use the money however they wish and some make the choice to give back to their favorite cause. When it comes to charitable organization, seniors can choose to support anything from community programs to international aid foundations.

In addition to giving funds to a charitable organization, some seniors use the money from a life settlements investment to help support loved ones, such as their children and grandchildren. According to new information from the U.S.

Census Bureau, 4.9 million children under the age of 18 live with their grandparents. The data also reveals that 20 percent of these children have neither parent present, which means that the grandparents are responsible for their basic needs.

While the majority of these grandparents take great pride in looking after their grandchildren, they are still faced with major financial burdens. Life settlement transactions can help grandparents and other relative caregivers support their grandchildren.