Tuesday, August 21, 2012

Viatical Insurance Transaction

The Viatical settlement and life insurance selling market continues to grow. More transactions are being done to provide terminally ill people and others the opportunity to sell an insurance policy and engage in a Viatical Insurance Transaction.

Though controversial to some, this insurance settlement option makes sense for people who are normally within 2 years of expecting to pass away. The Insurance cash settlement from Viatical policies can provide great relief for themselves and their family. A policy is an asset, and rather than continue to pay the insurance premium during times of stress and illness, it is sometimes best sold for cash to meet the needs of the insured and their loved ones.

Common Viatical Reasons
The life insurance policy is no longer needed or wanted

The premium payments have become unaffordable and they are considering surrender of the policy for cash value

Insured qualifies for a new life issue which is more affordable than old policy

The issue was taken out by a business to insure a key employee, and the business no longer needs the coverage it provides

The insurance policy is about to lapse

Change in estate planning and financial circumstances have changed and there is a need for cash now to cover a major purchase or improve quality of life and change in life circumstances

Economic issues and family finances

As some families continue to struggle at home with their financial burdens, it may be necessary to look at selling a life insurance policy, transferring annuity or other life settlement option.

Engaging in a viatical life settlement takes away the pressure of meeting costly insurance premiums and allows the insured to use the cash to meet hospital and doctor bills, pay their mortgage or just to keep the lights on. When people are terminally ill, there is rarely much income coming into the household as the person is most likely not working anymore. If there is some income (retirement or investments), most of the time that income is worn away or spent on pressing bills.