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A viatical settlement is when you sell a life insurance policy to a third party for a cash benefit. This type of life settlement used to be used only when there was a life-threatening circumstance such as terminal cancer or other terminal diagnosis. Understanding Viatical Settlement Companies is vital when looking into the Viatical Settlement option.
Choosing the right viatical settlement company
How do you know when you’ve chosen the right company? It’s important to do a bit of research. Check their history and whether they are a member of LISA. You also want to make sure this company will agree to put the proceeds of the sale into an independent escrow account so your funds will be protected during the transfer period.
Are viatical settlement companies regulated?
There are model regulations in place for the viatical industry, but it depends on what state you reside in, as not all states are regulated. The toughest regulations on viatical settlement are currently in New York, California and Washington.
Should I shop around?
It is always wise to shop around to weigh your options. Working with a company or getting information from your life settlement broker can provide the education you need to make a sound decision. Deciding whether or not a viatical settlement is for you can only be based on your personal circumstance and your needs at the time. Get several quotes from different companies and understand the ramifications attached to the sale and transfer. You should also find out whether or not you can change your mind within a certain time frame.
Working with a company that can give you the information you need to fully understand what a viatical settlement is and whether or not it will work for you is key.