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.
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For example, in New York, a policy cannot be sold except through a licensed life settlement provider.
The Lifeline Program is a life settlement provider in Atlanta, Ga.
Released in 2010, ILMA's "Life Settlement Provider Best Practices" is a guide of minimum compliance and diligence procedures for life settlement providers.
Bryan Freeman is president and managing member of Habersham Funding, LLC, a life settlement provider in Atlanta.
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.
Inclusion of life settlement provider and life settlement intermediary into the list of entities subject to the Superintendent's far reaching power to inquire, request information, investigate and subpoena contained in Section 308 of the Insurance Law.
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.
In turn, the life settlement providers that are interested in bidding on the policy will require similar written authorizations from the insured so that the life settlement providers can obtain the insured's medical information directly from his or her health care professionals and then disclose that information to the life settlement providers' financing sources (or the investors to whom the life settlement provider that purchases the policy will ultimately assign the life settled policy).
These surrender values are often so low that a qualified life settlement provider company can pay a higher value.