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Viatical Settlement Definition Viatical.Org

Viatical settlement definition: A viatical settlement is an arrangement in which a policy insuring a person with a terminal illness is sold to a third party for less than its death benefit in order to benefit from the proceeds while the insured is still living. To learn more visit viatical.org<br>

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Viatical Settlement Definition Viatical.Org

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  1. Viatical Settlement: Definition Who Qualifies For A Viatical Settlement VIATICAL.ORG

  2. A viatical settlement is an arrangement in which a policy insuring a person with a terminal illness is sold to a third party for less than its death benefit in order to benefit from the proceeds while the insured is still living.

  3. In return for their cash purchase offer, the viatical settlement purchaser will take over ownership and beneficiary rights to the policy as well as responsibility for premium payments. The lump sum and relief of the premium cost burden can greatly alleviate the financial hardships of the policy owner and family.

  4. A viatical investment can earn a higher rate of return than many other types of investments, however, not everyone can invest in viaticals. The viatical settlement purchaser must be an accredited investor. The rate of return cannot be guaranteed as it is dependent on the life expectancy of the insured. Therefore, it can vary widely should the insured either recover from their illness or live a shorter time than expected.

  5. Viatical settlement taxation is different from taxation of a traditional life settlement. In most cases, if an insured has a terminal diagnosis, a life expectancy of two years or less, settlement proceeds are not taxable.

  6. A viatical settlement broker or provider company can help facilitate this financial transaction for those who may benefit. A broker company represents the policy owner/seller and a provider company works for a life settlement fund/buyer in an effort to select policies that will fill their investment needs.

  7. A viatical settlement provides funds while the insured is still living, rather than only aiding the beneficiary after they pass away.

  8. Contact Us www.viatical.org 1-800-973-8258 admin@viatical.org

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