usually sent out for bids contains the life insurance policy terms, As well as the medical
prognosis of the terminally ill individual. The vertical life settlement company which is awarded the bid normally agrees to pay 50% to 80% of the policy's face amount, varying according to the gravity of the terminally ill customer's medical condition and life expectancy. The viatical life settlement company-in turn-sells the terminally ill individual's life insurance policy to a financial investor who eventually becomes the policyholder as well as the beneficiary and assumes premium payments of the insurance policy.
According to the Viatical and Life Settlement Association of America, the financial investor will receive 100% of the life insurance policy's face amount from the said insurance company, upon the death of the terminally ill individual. Normally, the sooner the terminally ill patient becomes deceased, the higher the return of the investor. The Viatical and Life Settlement Association of America reports that while returns of 15% to 20% are customary for financial investors, the insurance policies can pay off a considerably higher return if death occurs quite early.
Regulations The Need Of The Hour
The Viatical and Life Settlement Association of America has been a leader in fostering regulation of the insurance industry and responsible legislation since its advent in 1995. It is not only the oldest, but the largest non-profit trade association in the viatical and life settlement business. It has contributed detailed and conceptual language to actual laws governing the life settlement industry in most United States territories. The result of these efforts improved public awareness, public information and created a highly competitive market place for the chief purpose of serving the consumer a valuable financial service.
Viatical settlement with life insurance can benefit a wide range of seniors who desire to cash out life insurance as they plan for better retirement as well as other needs. Several seniors prefer a combination of annuity products, while some others desire to become debt-free. With viatical settlement with life insurance, a number of seniors don't realize that there are no restrictions on the use of their life settlement proceeds. Policy holders and financial advisors are capable to unleash valuable cash resources by entering into a life settlement
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