Consider a Viatical Settlement in Wisconsin
If you are facing a serious diagnosis or illness, you may find yourself strapped for cash to pay bills or having to choose between expensive medical treatment and financial stability. If you have an existing life insurance policy, a viatical settlement might help provide needed cash. A viatical settlement is a sale of an insurance policy on the life of someone who has been diagnosed with a terminal or chronic illness. The original owner of the policy receives cash, and the buyer takes over paying the premiums and collects the death benefit when the insured person passes away. Viaticals are intended to give policyowners access to a discounted amount of their death benefit before they pass away – instead of paying the full benefit to the beneficiaries after death. The cash can be used for medical treatment, better care, a trip, paying off debt – really anything. The idea is that an “early” payout of the money can provide peace of mind and hope, especially if it can buy treatment or care that might extend one’s life. And because it is considered an early payout of a life insurance claim, it is typically not taxable as income. You can shop online for viatical providers – companies that buy policies directly from owners. But remember that companies usually represent institutional investors who buy viatical settlements as an investment strategy. The process is legitimate, but the direct-buy providers have their investors’ best interests in mind, not yours. Finding an independent broker who assists you in the transaction is one way to be confident that you are getting exposure to multiple buyers. A broker soliciting bids for your policy at auction can help drive the selling price up as far as possible and create a true fair market value for your policy. Also, be sure to choose a broker who is fully transparent upfront about any fees or commissions. A well-qualified broker will also complete a thorough review of your policy since some contain a viatical provision that would allow you to settle at very little cost if any.
Monarch Insurance Can HelpViatical settlements can be a blessing to those facing terminal or chronic illnesses. Contact Monarch Insurance Partners’ licensed settlement broker, Brad Mueller (608-620-0596 or schedule a meeting here) to learn more about them and other life insurance options.
Valmark Securities supervises all life settlements like a security transaction and its’ registered representatives act as brokers on the transaction and may receive a fee from the purchaser. Once a policy is transferred, the policy owner has no control over subsequent transfers and may be required to disclosure additional information later. If a continued need for coverage exists, the policy owner should consider the availability, adequacy and cost of the comparable coverage. A life settlement transaction may require an extended period to complete and result in higher costs and fees due to their complexity. Policy owners considering the need for cash should consider other less costly alternatives. A life settlement may affect the insured’s ability to obtain insurance in the future and the seller’s eligibility for certain public assistance programs. When an individual decides to sell their policy, they must provide complete access to their medical history, and other personal information. Each client’s experience varies, and there is no guarantee that a life settlement will generate an offer greater than the current cash surrender value.