A viatical settlement is the process by which a terminally ill person, whose life expectancy is not more than two years, can sell his life insurance policy to another person. The investor buys the policy at a cost that is only a percentage of the principal amount, and then, after the death of the policyholder, he can collect the benefits. This process is actually a gamble, which might seem distressing to many. This is not so if the transaction is carried out in a fair manner. To ensure that the transactions are fair and that the patients do not fall prey to the pressure tactics of unscrupulous elements, a number of viatical life settlement associations have come into being. These associations are mostly non- profit organizations formed to maintain the integrity and reputation of the settlement industry. They also help promote the development of the viatical industry. Many of them are known to maintain high ethical standards and comply with all rules and regulations, such as the federal, state and local laws and all trade regulations and legal requirements. One of the main aims of these associations is to provide complete, relevant information to the consumers, thereby creating awareness amongst them. Knowledgeable consumers can then command better rates for their policies. These associations also provide referral services. A consumer can go through their websites to hunt for relevant information. Most of them include their contact numbers, and a person can call their office to answer any queries they might have. The viatical associations also take it upon themselves to identify whether the deal is a regulated transaction, as per the laws of the state. This is extremely important, as a consumer has the right to check the license of a viatical broker or company before entering into any transaction. This helps to ensure that no innocent person gets a raw deal. |
