 A Viatical & Life Settlement Brokerage
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A: A Viatical Settlement is simply the sale of a life insurance policy to a third party in exchange for an immediate lump sum cash payment. The purchaser of the policy receives all rights to and proceeds from the policy while taking over the premium payments. In return, the seller (insured) receives a percentage of the face value of the policy in cash, which he/she may use in absolutely any way.
A: For those facing life threatening illnesses, disease forces undue financial burdens on the victim and his/her loved ones by depriving a person of the ability to work and rapidly exhausting any savings. When this happens, a viatical settlement allows a viator (seller) to:
For seniors, the following situations are the most common:
A: NO. Life insurance policies from older individuals with a normal life expectancy are commonly purchased.
A: Virtually any type of policy from any carrier, including individual term, whole and universal life, group, as well as corporate-owned policies and policies held in irrevocable life insurance trusts.
A: No. Absolutely any size policy can be purchased, there are no limitations.
A: No. Any portion of a policy can be sold with the remaining death benefit being kept in the name of the original beneficiary.
A: In general, most cases settle for 50 - 85% of the face value of the policy. However, for applicants with life expectancies beyond 5 years, offers between 25 - 50% are common.
A: In some cases the insurance company may offer accelerated benefits or have a living benefit rider. If the insured qualifies, the insurance company will pay a certain percentage of the total benefit if the viator meets certain requirements. Examples of such requirements might be 6-12 months life expectancy (12 months is high with most insurance companies), home health care or nursing home care, and total disability. In most cases the amount offered by the insurer is significantly lower than the offers from viatical settlement companies and is not available until the policyholder is considerably closer to death. Insurers will usually only offer to accelerate a portion of the policy, the remainder of which, less interest and fees, is paid to the original beneficiaries at the time of the insured's death. It is a good idea to compare a viatical settlement offer with what your insurance company has to offer, to determine which route is best for each individual.
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