Viatical Settlements
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| WHY DO PEOPLE SELL THEIR LIFE INSURANCE
POLICIES? Many people with life-threatening illnesses do not have enough money to pay for their medical expenses. Sometimes they have to choose between buying medicine and paying their rent. However, if you have a life insurance policy, you may be able to sell it. This means that you would get money to help pay for your medical and living expenses. WHO BUYS LIFE INSURANCE POLICIES? Investors buy life insurance policies from people who are not expected to live very long. The investors buy the policy at a discounted rate. When the person who sold the policy dies, the investor receives the full amount of benefits from the insurance company. HOW CAN I SELL MY LIFE INSURANCE POLICY? Selling a life insurance policy is called "viatication". If you want to sell a life insurance policy, you can sell it directly to a viatical company, or you can deal with a broker. Condor International Financial Services is happy to broker this viatical for you so you will not have to shop around to find the best possible price for your policy. A viatical company finds investors who want to buy life insurance policies, and it finds people who want to sell policies. The company pays the person selling their policy, and when the person dies, the company receives the life insurance benefits and pays the investors. We normally take applications from people who want to sell their policies, and present the information to several different viatical companies. We WILL find the highest price available for your life insurance policy. WHAT ARE THE CRITERIA FOR BUYING A POLICY? Each company sets its own guidelines for deciding how much it will pay for a policy, and whether there are any other conditions that must be met. Normally, to sell a policy, you will need to meet several conditions: 1. Have owned the policy for at least two years 2. Have permission from the owners or beneficiaries of the policy 3. Have a terminal illness. Usually, a doctor needs to say that you are not expected to live more than four years. Viatical companies may have other rules about the types of policies they will buy, or the insurance companies they will consider. The companies normally will review your medical records and decide how much they would be willing to pay. The whole process usually takes about 3 weeks to 2 months or more. HOW MUCH WILL I GET? The amount you will receive for your life insurance policy depends mostly on how much longer you are expected to live. The sooner the investors will receive the life insurance benefits, the more they are willing to pay. Most viatical companies say that they can pay between 50% and 85% of a policy's face value. PRO . . . On the plus side, you might want to sell your life insurance policy because: 1. You will receive a lump sum cash payment for your policy. 2. You can do whatever you want with the money. 3. You won't have to pay any more life insurance premiums. 4. You might receive more than the current cash value of the policy. 5. You don't have to pay the money back, like you would if you borrow against your life insurance policy.. 6. In some cases, the money you receive is tax-free. . . AND CON Selling your life insurance policy can have some disadvantages, including: 1. You might lose your eligibility for some public assistance benefits. This would most likely happen for benefits that are based on your income and assets, such as food stamps, Medicaid, welfare, and some Social Security benefits. 2.Your life insurance benefits won't be available when you die. If you wanted money to go to certain people or organizations, you would have to make those gifts from the money you get for selling your policy. 3.People might learn about your health status during the process of selling your policy. HOW DO I CHOOSE A COMPANY TO BUY MY POLICY? Condor International Financial Services will be happy to find the best company to purchase your policy. THE BOTTOM LINE If you have a life insurance policy, you may be able to sell it and use the money however you want to. There are many companies that buy life insurance policies. Each company will have its own procedures and will come up with its own offer for your policy. We will shop around for the best offer. Selling your life insurance might affect your income taxes or financial benefits that you currently receive. Be sure to get good advice before selling your policy. |