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.
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.
Viatical Transaction Process
Candidates and Policyholders should contact a company that specializes in Viatical Settlements. What these companies will do is examine your policy and determine if you are an appropriate candidate to sell your policy and if there is a market for it. The way these transactions are done is the policy is marketed to investors willing to take on the premiums and keep the policy active. The new policy owner pays out the insured a negotiated cash settlement up front. The Viatical Insurance company and broker will retain a fee as well. When the insured dies, the new holder of the policy will receive the death benefit payout. The policy is not changed as far as the death benefit cash payout. It is simply paid to the new person. The person who was the insured (his family) does not receive anything at the time of death. They received the cash at the time of the insurance cash settlement. This concept is the same for senior settlements as well as viatical transactions.
More on Viaticals
Nick Hunter is an insurance agent and writer on Selling Insurance Policies for seniors and terminally ill policyholders. He also writes for Americas Truth where people can get a quote on Viatical Insurance Situations
Article Source: http://EzineArticles.com/?expert=Nick_Hunter
Insurance Companies are still competing for your business. It's really important to do your due diligence and shop around for the best rates possible.
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