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 of viatical settlement involves the selling of a life insurance policy by a terminally ill person whose life expectancy has been predicted for about two years or so, to unrelated investors – which can be banks, private companies, or brokers.
This gamble on death may seem unpalatable to many but can provide help to people by easing their financial strains and providing the cash to get better health and medical care.
The seller of the policy gets cash surrender value while surrendering the policy. The surrender value is less than the face value of the policy. But the seller needs to keep in mind that the value he gets for selling the policy should be more than what he would other wise get by surrendering his policy.
While selling one’s life insurance policy, he or she should keep in mind that there may be accelerated benefits associated with the policy. These benefits are also sometimes called living benefits. These are benefits that a policyholder gets from the insurer before he dies.
Any decisions involving the sale of life insurance policy will have a deep emotional impact on the seller and his family members. So before coming to any decision it makes sense to talk to a lawyer or a financial planner.
The other alternative is to contact the state Insurance Commissioner or the insurance company’s claims department so as to explore the maximum alternatives. The insurance companies can sometimes offer accelerated benefits or even loans. Accelerated benefits are usually added to the policies for additional premiums, while there are companies who do not charge any additional premiums.
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Viatical Life Settlement Contracts
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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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Senior Viatical Settlements
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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...
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Viatical Settlement Providers
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A viatical settlement involves the selling of a life insurance policy by a terminally ill person to unrelated investors who can be private funding companies or brokers. These companies or brokers buy the policy at a reduced rate based on the face value of the...
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Types Of Life Insurance Settlements
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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 Settlements
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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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Selling Your Life Insurance Policy
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Life insurance policy owners can sell their existing life insurance policies for certain cash value in an open market. The amount that the policy owners receive is usually less than the face value of the policy. Life settlor is the person insured under the policy,...
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Cash Life Insurance Settlements
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Cash life insurance settlement refers to a cash settlement for relinquishing the life insurance policy of a person for several reasons, like medical treatment, incapacity to afford premiums, poor performance of the policy, and so on. Generally Cash Life Insurance Settlement companies purchase life insurance...
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Viatical Settlement Companies
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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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Life Settlement Funding
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Life settlement funding, also known as senior settlement or life time settlement, is a scheme that allows qualified life insurance policy owners to liquidate a life insurance policy for an amount much higher than the cash surrender value. If a senior person, over 65 years...
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Life Insurance Settlements
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Before discussing the benefits of life insurance payments, it is important to get a clear idea as to what life insurance settlements really are. Simply put, a life insurance settlement is the cash which is given to a policy holder in exchange of the ownership...