Viatical settlements are a relatively new term most of the people are not aware of. The only similarity between a life settlement and a viatical settlement is that the insured policyholder sells the policy to the third party. It’s confusing, right? But to be clearer, a viatical settlement can only be made if the policyholder is terminally ill and has a little life expectancy (2-4 years). In a viatical settlement, the insured policyholder, who is terminally ill, receives a certain amount of cash from the investor. When the insured seller dies, the investor receives a return from that life insurance policy. In viatical settlements, the investor is usually a viatical settlement company. So, are you still thinking that it’s similar to a life settlement? If yes, you should stop thinking so now.
Viatical Settlements reached the peak of popularity when the AIDS epidemic struck in the 1980s. Since then, it’s helping people liquidate their assets out of their unwanted insurance policies in times of need. Since a viatical settlement presents a win-win offer, it’s more reliable. You may find the procedure followed in setting up viatical settlements a bit complicated, but once you’re familiar, it’s as easy as taking a butter bite.
Viatical settlement companies, also known as viatical settlement providers, are profit organizations that buy insurance policies from the people who are terminally ill. These viatical settlement companies help the seller get benefit by providing immediate cash before the seller passes away. Once the insured policyholder sells his policy, the viatical company becomes the new beneficiary and owner of that policy and continues to pay the insurance premiums to keep the policy going. Also, the viatical company receives the death benefit upon the death of the policy seller. So again, it’s more like a fair deal because something is better than nothing.
To viatical settlement companies, it’s a smart business strategy, but to the policyholder, it’s a much-required financial help as he/she receives cash from the settlement company. So, if you think more about it, viatical settlement companies help the insured in situations where there is a desperate need for money. Can there be any companion better than the settlement company especially when it’s about money?
Even if viatical settlement companies play an important role in helping out terminally ill people, not all viatical companies are all the same. Since the concept of viatical settlement companies is new, this industry isn’t very large. But still, there are many viatical settlement companies which buy insurance policies. It’s very important to find out companies that are licensed. You wouldn’t want to lose the game after making so many efforts. Would you? So, playing on the safer side will be a much better decision.
Terminally ill people usually face problems related to higher expenses. This is the time when they need money than at any other time in their lives. And this is when the viatical settlement company appears as the relatively better option and a ray of hope for the policyholder. So, settle down and give it a thought. You’re just a decision away.