Viatical Settlement Company

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Viatical Settlement Company

A company to which a life insurance policy holder sells his/her policy in exchange for a lump sum. The situation occurs when the policy's fair market value exceeds the cash surrender value that the insurer offers. The viatical settlement company must abide by applicable regulations, which, in the U.S., are set by individual states. The viatical settlement company becomes the policy's new beneficiary, is responsible for maintaining premiums, and, upon the death of the insured person, receives the benefit. The secondary market for life insurance began growing in the last part of the 20th century. The viatical settlement company is speculating on how long the insured person will live; indeed, it is in the company's financial interest for the insured person to die as soon as possible. A viatical settlement company is also called a life settlement provider.
References in periodicals archive ?
Terrell is senior vice president of sales, marketing, and public relations of The Lifeline Program, a life settlement provider based in Atlanta.
When selling the policy to a life settlement provider, the policyholder receives a payment that exceeds the surrender value but is less than the death benefit.
Bryan Freeman is president and managing member of Habersham Funding, LLC, a life settlement provider in Atlanta.
As the regulatory platform has really gotten its legs under it, I think the capital markets have become more confident that this is a well-regulated industry," said Alan Buerger, chief executive of Coventry First LLC, a Philadelphia-area-based life settlement provider.
The company contacts a life settlement provider, which buys the life insurance policy from the company for an amount exceeding the surrender value offered by the insurer, calculating that the value of the death benefits exceeds the purchase price, transaction costs and continued premiums.
life settlement provider, is hosting the first webinar in the month-long educational series Insurance-Linked Investors Awareness Month (ILIAM)ao entitled "Opportunities to Invest in Distressed Insurance-Linked Assets.
These surrender values are often so low that a qualified life settlement provider company can pay a higher value.
In a recent survey of accountants, attorneys, estate planners and insurance professionals by Maple Life Financial, a Maryland-based life settlement provider, 45% of respondents had clients over age 65 that had surrendered a life insurance policy for its cash value.
The article recommends that policy holders "consider working with an agent to sell the policy on the life-insurance secondary market," an option illustrated by the following case study of an actual client of life settlement provider GWG Life, LLC.
The full version of ILMA's Life Settlement Provider Best Practices is available at www.
a life settlement provider in San Diego that acts as a direct purchaser, using institutionally based funds.