Viatical Settlements,Loan,Home Equity Loans,Auto Loans,Debit Consolidation Loans,Secured Loans,Unsecured Loans,Bad Credit Car Loans,Personal Loans,Refinance Loans,Mortgage Loans,Small Business Loans,Large Business Loans,Commercial Loans,Student Loans,Loan Banks USA,Bankruptcy,Life Insurance,Car Insurance,Life Settlements,Structure Settlements,Viatical Settlements,Merchant Account,Credit Cards,Debt Cards,Finance Planning,Credit Financing

Viatical Settlements

A viatical settlement is the sale of a life insurance policy by the policy owner, before the policy matures. Such a sale, at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value, provides the seller an immediate cash settlement. Generally, viatical settlements involve insured individuals with a life expectancy of less than two years. Some people are also familiar with life settlements, which are similar transactions but involve insured with longer life expectancies (two to twelve years). A viatical settlement can be an innovative wealth and estate planning tool under the right circumstances. It also essentially creates an open market for redemption of a policy. For example, if the only place you could sell your Ford Motor Company stock was to Ford you would not get that much for it. The same applies to the value of an insurance policy. As long as life insurance has been around, the only place to redeem your policy was from the issuer. Now, much to the chagrin of the life insurance industry, there is an open market to determine a policy's value. From the perspective of the investor, purchasing a viatical settlement is similar to buying a bond with a negative coupon and an uncertain redemption date. The return depends on the seller's life expectancy and when he or she dies.

Search Site

Viatical Settlements