Viatical Settlements Offer Comfort for Individuals Facing Terminally Illness
What is a viatical settlement? A viatical settlement is the transfer of an individual's life insurance policy to another person or entity in exchange for cash.
Typically, individuals will sell their life insurance contract when they realize they are terminally ill and have little hope of recovering, by way of a viatical settlement. The policies can be purchased by people with terminal illnesses who do not want to wait until death before making use of them, or can be purchased by hedge funds that manage the money from death claims.
The only drawback is that nothing generates interest over time like cash does, so there will be some sort of discount when the policy holder sells it. This discount is called a "viatical settlement discount" and is used to compensate the company involved for their risk.
What are the benefits? Viatical Settlements offer several benefits for all parties involved in the transaction. For those who are terminally ill, the policy allows them to live comfortably during their final days with money they otherwise would not have had. Individuals also cut legal costs by accepting a discounted lump sum payment, rather than paying out insurance premiums over time. The person or entity that buys the policy receives no-risk income that can be used to invest, while helping people in need at the same time.
Who can participate? Viatical settlements are open to all individuals - regardless of gender. The only limitation is that the policy holder must be terminally ill with a doctors' certification of death. The legal requirements for those buying the life insurance policies are also different from other types of insurance. Policy holders in one state may not be able to purchase policies in another.
What is available today? There are several companies working on viatical settlements today, though they do not serve all states and cannot offer policy benefits except for cash.
What's next in the future? Viatical settlements have been growing steadily for many years. As viatical settlements become more prevalent, viatical settlement companies are spending a lot of effort working to make them more legal, more affordable and available to a larger number of people.
Recent changes in state law are being made so that individuals can receive cash benefits for life insurance policies that were written years ago, before it was legal to cash out a policy before death occurred. The changes also make it possible for individuals who have not yet reached their 60th birthday to sell their policies when they are terminally ill.
Currently, viatical settlements can only be offered in the following states: Alaska, Arizona, Colorado, Hawaii, Kentucky, Missouri, Oklahoma, Pennsylvania and Texas.
Individuals living in these states would be wise to consult with an attorney or other qualified financial services professional before entering into a contract with a viatical settlement company. All contracts should be reviewed by an attorney.
The best time to review one's situation is before one is ill and thus has an entirely different mindset - knowing that the end of life is near often allows people to make decisions that are good for themselves and their families.
https://web.archive.org/web/20120526043028/http://www.insurancejournal.com/news/national/2008/03/24/73868.htm
http://www.viaticalsettlements.com
http://www.viaticalsettlements.com
https://web.archive.org/web/20120526043028/http://www.insurancejournal.com/news/national/2008/03/24/73868.htm
https://web.archive.org/web/20120526043028/http://www.insurancejournal. com/news/national/2008/03/24/73868.htm
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https://cjlawmedia11252013.wordpress .com/2013/11/25/viatical-settlements-offer-comfort-for-individuals-facingterminally-illness/#comment-1153
https://web.archive.org:80%2F%2Fwww.viaticalsettlementadviserblogspotcom%2Farchives%2F30830-11110-2849-60248-38972-square-mosaic?rev=143573&viewfull=1#content
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Conclusion:
http://www.viaticalsettlements.com/en_US/newsroom/press-releases/2014/august.aspx
https://web.archive.org:80%2F%2Fwww.viaticalsettlementadviserblogspotcom%2Farchives%2F30830-11110-2849-60248-38972-square-mosaic?rev=143573&viewfull=1#content
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