Article Sphere Logo
 
Main Article Categories

 Alternative Medicine
 Arts And Entertainment
 Automotives
 Beauty
 Business
 Communications
 Computer And Technology
 Disease And Illness
 Finance
 Food And Beverage
 Health And Fitness
 Home And Family
 Home Based Business
 Insurance
 Internet And E-Business
 Legal
 News And Society
 Pets And Animals
 Product Reviews
 Real Estate
 Recreation And Sports
 Reference And Education
 Self Improvement
 Shopping
 Travel And Leisure
 Women Health And Fitness
 Women Interests And Issues
 Work At Home
 Writing And Speaking
 All 511 Categories
 
"Structured Settlements" Article
 Article Directory Home Finance Structured Settlements

Viatical Settlement - A Win-Win Situation for Most!

By Expert Author: Robert Lawrence
View Summary | Submitted: 2006-09-25 | Word Count: 446 words | Views: 297 view(s)
Robert Lawrence
Viaticum is the Eucharist given to a person on the verge of death, or to one who is facing a possibility of death. It is no wonder, then, that this Latin word would be the root of the term - Viatical Settlement.

Viatical Settlement involves the sale of a life insurance policy to an investor. A Viatical settlement is usually carried out by the terminally ill - those who face penury by the cost of maintenance alone, those who expect to live not longer than two years. That being said, a Viatical settlement is purely a financial transaction. The viator, the one selling the life insurance, sells the policy at a discounted price of the death benefit of the policy and is provided with immediate cash settlement. This usually helps in paying the medical bills of the aged person.

The investor is the buyer of the policy. The investor has two options. One is to sell the policy to a third-party, or to stash the policy as a company investment. Viatical settlements are especially attractive to investors and the rates of return, though not guaranteed, are potentially high. As with any kind of deal, risks are always present for both parties. For the Viator, the primary risk is settling for a low price. Of course, compared to the future premiums, the price would be lower, but there is still the danger of the policy being bought at a song.

For the investor, the risks are greater. There is the probability that the investor will not receive the full death benefit should unfortunate circumstances cause the insurance company to go bankrupt. There could also be the ghost of a chance that the Viator may have committed fraud upon signing insurance forms. Or the Viator may have a miraculous recovery and go on to live for another twenty years.

Viatical settlement should be thought more than twice before being engaged into. This is not a regulated investment and crooks abound, waiting to pounce on the gullible and the dying. Here are sound advices, both for potential Viators and investors:

For Potential Viators:

· Check with your insurer to find out if your policy includes Accelerated Death Benefits. This will get you much more money and you will be paid much faster.

· If you are a member of a Credit Union, seek information about licensed Viatical providers.

· Apply to more than one Viatical settlement company.

For Potential Investors:

· Do not use your IRA for Viatical investments. It is prohibited by the Internal Revenue Code.

· To be safe, do not buy a policy that is within the contestability period. That way, if the viator committed fraud on his application and was discovered, you won't be left with just a return of premiums.
About the Author/Author Bio

Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990.

Article Source: http://www.articlesphere.com/Article/Viatical-Settlement---A-Win-Win-Situation-for-Most-/51748

This Article has been viewed 297 times.

Comments on this Article


More "Structured Settlements" Related Articles

 

Listed below are more articles related to the above article from the "Structured Settlements" article category.

People interested in the above article "Viatical Settlement - A Win-Win Situation for Most!" are also interested in the related articles listed below:

It is common knowledge that a lawsuit settlement can absorb considerable amounts of time and financial resources, that is why some financers buy a part of the plaintiff's anticipated settlement to keep them from going bankrupt.
A structured settlement provides financial security for those who have been injured in an accident, or have been awarded a large sum of money. Structured settlements provide regular payments for a certain period of time. The agreement may be tailored to meet the needs of the claimant; however, circumstances change, and many people sell their future payments for a lump sum of cash. Find out if selling your payments is to your advantage.
Many people choose to sell their structured settlement payments to obtain a lump sum of cash. While selling your future annuity payments offers you immediate control of your money, it may be detrimental to your long term finances. Learn the risks before you decide.
Selling your structured settlement payments for a lump sum of cash is a major financial decision. There are many reasons that people choose to trade their guaranteed periodic payments for money up front. While this kind of transaction offers you control over your money, there are some risks involved. Learn how to sell your payments and what you can expect during the sale process.
If you are considering selling your structured settlement payments for a lump sum of cash, you want to get the most money possible, and also choose a reputable structured settlement buyer. Here are some tips for choosing the right buyer for your structured settlement annuity payments.
Structured settlements are financial packages or financial agreements permitting a settlement to be paid through an annuity via regularly scheduled installments either for a fixed period or for the lifetime of the claimant. In lay man terms, Structured settlements are also known as Structured Annuity settlement, Insurance Structured settlements, Annuity settlement, Structured annuity and Structured settlement payments.
If you are injured in an accident and sue for damages and medical expenses, you may benefit more from long-term payments through a structured settlement rather than accepting a single payment.
Article Directory Home Finance Structured Settlements

Can't find what you're looking for? Try Google Search!
(Search in 26 languages: English, Spanish, French, Japanese, Arabic, Italian, German,
Chinese Simplified, Chinese Traditional, Dutch, Korean, Portuguese, Russian, Greek, Serbian
Slovak, Hebrew, Swedish, Romanian, Polish, Norwegian, Finnish, Danish, Czech, Croatian, Bulgarian)
 
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
Template Design by Internet Marketing Singapore | Internet Marketing | Singapore Classified
Español Français Bulgarian 汉语 漢語 Croatian Czech Danish Dutch Finnish Deutsch Ελληνικά Italiano 日本語 한국어 Norwegian Polish PortRomanian Русско Serbian Slovak Swedish [أربيك] Hebrew