How a Viatical Differs from a Life Insurance Settlement
Both are derived from the same make of car
but are considered different model types…

By now, I think you know what a Life Insurance Settlement is. However, do you know what a Viatical Settlement is?

I’ll try to simplify. A Life Insurance Settlement evolved from the success of the Viatical Settlement. Back in the late 1980’s, the insurance industry decided to offer an opportunity to help HIV and AIDS patients to sell their life insurance policy to receive cash from the policy’s death benefit to help them being able to afford costly treatments needed to help them sustain life as long as possible. It did wonders and was a blessing for so many.
Depending upon the state Insurance regulations, to qualify for a Viatical Settlement the policyholder, would have to provide a letter from his physician that his life expectancy was estimated to be less than two or three years and our actuaries will also be required to examine all medical records. Also, the policy has to be two years since the date it was issued. The amount of the offer could be as high as 75% of the face amount of the policy. Viatical settlements are available for the terminally ill regardless of illness type, age or size of policy. The Viatical Settlement is meant for the most serious health care needs and for worst case life expectancy situations.

A Life Settlement transaction is not specific for the terminally Ill. It is reserved for senior citizens over the age of 65 and preferably 70 plus, who are interested in selling their policy for cash for Long Term Care needs, assisted living or basic retirement needs. Senior Life Settlements typically pays a lower percentage of the policy amount than viatical settlements. Although they offer substantially much more than a policy’s cash surrender value amount from the insurance carrier. Additionally, the face amount of the policy should be a minimum of $100,000…and with no maximum amount requirement.

Another difference between the Viatical and the Senior Life Settlement is that a life settlement may require the seller to pay income tax on the proceeds of the sale and a Viatical is income tax exempt.

That’s it in a nutshell about the difference between Life Settlements and Viaticals.
I’m more than happy to provide you with more information regarding a Viatical or a Life Insurance Settlement upon your request. You can reach me anytime on my direct line 505-702-3699.
I’m always here to assist you.

Warm regards,

Guiding Seniors to Peace of Mind
505-702-3699  ~ Mobile Line

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