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 ?
1) Fraud investigators, who may be life settlement providers or employees or independent contractors of those life settlement providers; and
Buerger added that, where once life settlement providers were the focus of lawsuits by insurers, now the tables are turning.
LISA President David Hartman, chief operating officer of Baltimore-based Life Settlement Providers, said the issue of withdrawn contracts was one for more than just the specific company involved, noting that "what's bad for one of us is bad for all of us.
other information about the life insurance policy, the selling policyowner and the insured requested by life settlement providers necessary for the life settlement broker to obtain on behalf of the selling policyowner offers to purchase a life insurance policy from multiple life settlement providers.
A sample case described below illustrates the range of calculated settlement prices produced by the three methods employed by life settlement providers.
Some life settlement providers have created such arrangements to make it easier for agents to offer life settlements with less burdensome paperwork.
While there are many successful life settlement providers and funding entities, there have been instances of company failure.
1543 would permit the California insurance department to collect information from life settlement providers that would help it monitor the market, insurance groups say.
The insured may contact the life settlement provider directly, or through a financial adviser, or may use a life settlement broker, which solicits bids from multiple life settlement providers on behalf of the insured.
Scott Page, president and CEO of the Lifeline Program, one of the nation's leading life settlement providers, will lead the webinar.
Another option is to use a Life Settlement Broker ("Broker") who would contact several Life Settlement Providers for you to help you determine the Life Settlement market value of your life insurance policy.