Senior settlements are different than viatical settlements. Viatical settlements involve the selling of the life insurance policy by a person who is terminally ill and whose life expectancy has been predicted to about two years or so. The policyholder may need cash either to ease his financial strains, or to leave something for his children or grandchildren, or to pay for his funeral dues, as the case may be. For this, he can sell his life insurance policy for a lump sum amount to an investor, who would then get the death benefits of the policyholder on his demise. There is a high level of risk involved in this transaction because life expectancy can never be predicted accurately. If the person outlives the predicted period, the investor stands to lose, as he will get lower returns. He may also lose his principal amount if the seller lives long enough and so the investor would have to pay the additional premiums also.
Life settlements or senior settlements are different than viatical settlements. Senior settlements are meant for senior citizens (sixty five years of age or more) and they are not actually suffering from any terminal diseases such as cancer or AIDS. Senior settlements provide the senior citizens a way to obtain a lump sum cash amount for life insurance policies that have outlived their usefulness. They are meant for people who have health problems and have policies worth over $100,000.00.
As a senior citizen, you can sell your policy to a bank or to any financial institution. These institutions will then provide you a cash settlement that will exceed the surrender value of the policy. The senior settlements are also called life settlements and can prove to be a favorable option of cashing your settlement rather than letting the policy lapse.
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Senior Life Settlements Industry: An Overview
10 August 2010 8:30 PM |
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Senior Life Settlements have provided senior citizens a method to realize the financial value of their insurance policy assets before their maturities. Earlier, a large number of policies would either lapse or be surrendered by senior citizens who were unable to keep paying the premiums....
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Senior Life Settlements: An Introduction
10 August 2010 8:30 PM |
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A Senior Life Settlement means the sale of an insurance policy to a third party at a value less than the face value of the policy. The buyer of the policy is liable to pay all future premiums on the policy, while the original holder...
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Viatical Settlements
10 August 2010 8:30 PM |
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The concept of viatical settlements works on the premise that a person with a terminal disease can sell his life insurance policy for less than the face value. The person can get lump sum cash and the buyer can collect the benefits of the policy...
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Senior Settlements
10 August 2010 8:30 PM |
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Sometimes senior citizens no longer need their policies which they had taken in their youth. They may not be able to pay the premiums anymore, or they may need the cash for some other purpose. Some years ago, the only options to get rid of...
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Senior Life Insurance Settlements
10 August 2010 8:30 PM |
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A senior life insurance settlement is the financial option available in the hands of a senior citizen to sell his/her life insurance policy to others and availing the death benefits before the maturity period or the demise. In contrast, viatical life insurance settlements offer premature...
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Types Of Life Insurance Settlements
10 August 2010 8:30 PM |
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A life insurance settlement is defined as the selling of an active life insurance policy for a lump sum amount to any other interested part. However, sellers need to ensure that, the value of the policy received after sale is more than, its cash surrender...
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Viatical Life Insurance Settlements
10 August 2010 8:30 PM |
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The physical and emotional demands of a terminal illness are traumatic enough – both for the person and for the near and dear ones. Financial strains only serve to compound the trauma. Viatical life insurance settlements, if handled carefully, can provide financial relief. The process...
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Viatical Settlement Companies
10 August 2010 8:30 PM |
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Death may be the only sure thing in life, and gambling on it may sound disconcerting to many. Viatical settlements involve selling the life insurance policy of a terminally ill person to a company who pays a lump sum cash amount in return for the...
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Viatical Life Settlement Contracts
10 August 2010 8:30 PM |
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Suffering from any terminal illness is traumatic enough and facing financial strains can only compound the matters. Viatical Settlements are a way to provide relief to the terminally ill person, in that he can sell his life insurance policy for a lump sum amount of...
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Viatical Settlement Brokers
10 August 2010 8:30 PM |
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Viatical settlement involves the selling of a life insurance policy by a terminally ill person to unrelated investors who can be banks, private companies, or brokers. The seller gets a lump sum amount as cash payment while the investor gets the death benefits on the...