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Tags: finance, structured settlements, viatical settlements
 Treating someone that’s terminally ill can be one of the most costly things you’ll ever have to shell cash out for. People with a dying loved with, struck by an illness that’ll need more than the average medicines for treatment, know exactly what I’m talking about. The use of the facilities alone can cause the bills to skyrocket, and the need for the presence of doctors with strange sounding last names makes it even worse.
Being canned in a situation like that can call for desperate measures, measures like the need for more cash, to ensure the remaining time left for the sick loved one is as easy as possible. One mean to help with the transition from life to death of that special person is through viatical settlements.
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You may or may not be familiar with what exactly viatical settlements are, so for the benefit of those who don’t, take a look here: a viatical settlement involves two parties, namely the viator and the investor. The viator sells his life insurance policy at a reduced rate of the would-be death benefits to the investor.
In return, the investor gives the viator settlement in the form of cash – why do this in the first place? Well if you really did forget what we’ve been talking about earlier, it’s for the purposes of funding the maintenance the dying guy requires, as well as for other purposes intended (like getting medical bills off their backs).
From there, the investor can opt to sell the life insurance policy to another party, or he may keep it as a company investment. The reason why investors buy these policies off individuals nearing death in the first place is the potential returns for them to reap from. In the ideal scenario, both the viator and investor should be able to benefit from the deal, but things don’t always go as they’re planned, why? Risk – this factor comes into play for both parties involved with the viatical settlement.
First off, let’s check out the dangers the seller may be facing: we all know these guys sell their policies at a reduced price, but there’s always the risk of them selling it for a ridiculously low price. There are plenty of viatical buyers looking out for chumps who’d fall for their sweet sales pitches, having them agree to unfair terms.
So before engaging into this transaction, it’s best that you do a little research on licensed viatical providers. You should also see if your policy offer accelerated death benefits, because if it does, that means more money given faster for you. Applying at several viatical settlement companies is also advised, as to ensure you funnel out the best deal.
As for the investors, you guys are left with the possibility of the insurance company providing the policy you bought goes bankrupt, therefore stripping you of your right to claim the death benefits in full. Another would be the guy you bought it off committed fraud, so you might wanna conduct a little investigation on him first.
Lastly, there’s a rare possibility that the viator will get better and extend his life by years – if he ain’t dead, you ain’t getting anything. That’s very rare though, but there’s a really small chance that it’ll happen (as seen on TV).
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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