Those who are near retirement age may find themselves struggling to determine whether they’re set for the years to come. Due to the market crash in 2008, most older individuals are short on funds, meaning that they need to find other options to raise the money they need to live comfortably and in a worry-free manner. Those who have exhausted all other options may want to consider a life settlement – and in some cases, known as a vitatical settlement. This is a transaction that takes place in the secondary insurance market, whereby a life insurance policy holder sells his or her policy to a life insurance company for more than the surrender value, but less than the death benefit.
There are many life settlement companies on the market, which means that individuals should take care when assessing their options to determine what is right for them. With that, this review would like to introduce Vitaical.Org Settlements.
What Is Viatical Settlements
Viatical.Org Settlements is a life settlement companies that “strives to be the quality resource for information about vitatical settlements and life settlements if you are contemplating selling your insurance policy for a lump sum of cash.” The company conducts transactions for both vitatical settlements and life settlements and understanding the difference between the two can be integral in ensuring that one gets the most out of their policy. Viatical.Org has been in business for over 20 years, meaning that it may have the expertise available to ensure that the process is simple, effective, and that it leaves individuals in a positive position.
Further, dissimilar form many life settlement companies, this one recommends that individuals also consult an independent third-party to ensure that a life settlement is a step in the right direction.
The Difference Between Viatical Settlements And Life Settlements
As previously mentioned, understanding the difference between a vitatical settlement and a life settlement can be integral to ensuring that one is making a sound decision. While some companies use the two terms interchangeably, there is a significant difference. A life settlement is a transaction that is normally conducted with a policy holder who does not have a terminal illness or condition that can cause them to pass away within a short period of time. On the other hand, a vitatical settlement is conducted with an individual who is terminally ill.
Between the two, a life settlement is the more reasonable approach when there are no other options available for accumulating funds. A vitatical settlement seems only necessary if immediate funds are a must because most of the terminally ill individual’s family members will receive the funds from the insurance policy upon their passing, which is likely to be a short period of time anyways. Therefore, those who are interested in a vitatical settlement should only choose the option if they need funds immediately and cannot wait for the death benefit.
Another issue with vitatical settlements is that an individual’s ability to consent to the transaction may be impaired due to their terminal illness. If an individual does not knowingly and intelligibly consent, then the contract may be void – the same applies to a life settlement.
Eligibility With Viatical.Org
In order to receive a life settlement, one needs to be eligible. Most life settlement companies have their own criteria that they use to assess eligibility, therefore it is important to review each of one’s options to determine if they qualify. Here are the main criteria that Viatical.Org uses for its life settlement process:
Over The Age Of 65
First, the policy holder must be over the age of 65. The reason that the company only deals with older individuals is the life expectancy. Companies make the most profit when the life expectancy of the policy holder is shorter, rather than longer.
An Existing Policy
Second, those who are interested in selling their life insurance policy must have an existing policy on hand and the policy needs to be of value. While Viatical.Org does not specific the specific value that it prefers in its policies, the general amount is over $100,000. However, there are companies that will buy policies that are below that amount.
The Type Of Policy
Third, Viatical.Org will also assess the type of policy that one is trying to sell. Some companies only purchase certain life insurance policies – therefore, it is best to discern what type of policy one has and to determine whether Viatical.Org will be able to purchase it.
Speak With A Representative
Finally, the best way to learn about the rest of the eligibility requirements that Viatical.Org has is to speak with a representative. A representative will be able to provide the full picture in terms of eligibility so that individuals who are interested in selling their life insurance policy are taking the right steps for their needs.
Clearly, the eligibility requirements conform to what most other life settlement companies will look at. Keep in mind that while Viatical.Org may be the right company to work with, it is also important to work with other companies so that one can receive a number of offers. The more offers that one gets – the greater opportunity one has to receive a good offer.
When To Explore A Life Settlement With Viatical.Org
A life settlement is a serious decision that isn’t suitable for everyone. Viatical.Org identifies a number of reasons to explore individuals may want to choose a life settlement with it. Here are just a few reasons Life Settlements may be the right option:
Older In Age And In Need Of Funds
One of the first signs as to whether a life settlement is an appropriate option is that one is older in age and in need of funds. There are many different ways to generate funds in older age, aside from a life settlement. Therefore, a life settlement option should be undertaken if all other options are exhausted – particularly because a life settlement deprives one’s intended beneficiaries from receiving funds at the time they choose the settlement. Further, due to the conditions of a life settlement, an individual often receives less than the death benefit of the policy.
Premium Payments Are Crippling
Second, those who have to deal with crippling insurance policy payments may want to simply cash out their policy for a life settlement. This opportunity means that the purchasing company will be responsible for the premium payments. Keep in mind that premium payments are an issue if there is no other way to handle them.
Tax Implications
Finally, while Viatical.Org does not identify the tax implications of selling a life insurance policy – there may very well be tax implications. Therefore, those who are interested in a life settlement may want to consult a financial planner or a tax specialist to ensure that they are making the right decision. By understanding the tax implications and all other outcomes of selling the policy, individuals can safeguard that they are taking the right steps for their policy.
A life settlement is a serious decision, which requires individuals to look at every facet of the transaction and all of the outcomes that may be involved.
Licensing And Regulation Compliance
There are many life settlement companies on the market and not all of them meet state licensing and regulatory requirements. Those who are interested in going through the life settlement process with Viatical.Org should ensure that the company is licensed in their state.
Unfortunately, Viatical.Org does not delve into the states that it is licensed in and the regulations that it follows to ensure that it is facilitating the life settlement process in the right way. Thus, those who are interested in undergoing through a life settlement with Viatical.Org should first discuss whether the company is licensed. Further, while there are licensing requirements for life settlements in various states, there are also licensing requirements for vitatical settlements as well. Additionally, there are some states that require the company to recommend to interested individuals that they should consult with an independent third-party attorney or financial planner before going through with the transaction.
Case Studies
To provide individuals with insight into the potential outcome of the transaction that they conduct with Viatical.Org, the company also has a page dedicated to case studies. The case studies apply both to life settlements and vitatical settlements so that individuals can see just how much they may be able to potentially receive. It is important to note that the case studies reflected on the company’s page are claimed to be real and that the case studies on file.
Thus, those who are looking to learn more about a particular case study and its validity can contact the brand and ask for the case study on file. This way, individuals can make sure that the information provided is true and legitimate and that it truly does show what the individual may be able to receive.
Unique Feature: Life Insurance Loan Or Advance
A very interesting feature of this company is that it offers individuals to get a life insurance loan or advance. According to the company, the life insurance loan “offers policy holders a unique opportunity to get cash from their life insurance policy right away to cover medical expenses, unexpected expenses, or even traveling with family and friends.” Take note that while it does not state it on the website, it is very likely that the loan operates like a traditional loan, meaning that interest may be involved – perhaps even a high interest rate. Therefore, those who are interested in the loan option should verify with the company what the conditions are the loan are.
As the brand explains, there are a number of advantages to securing a life insurance loan for purposes of a life settlement:
- All types of policies qualify
- Those who have a recent issue with their health qualify
- No out-of-pocket costs
- No insurance premium payments
- Entire coast of the loan is paid from the death benefit
- Credit score is not a consideration
- The insurance premiums are paid by the loan company
Those who are interested in a life insurance loan should deeply consider whether it is a sound decision. Further, there may be other conditions to be aware of, which are important to discuss with the company.
Viatical.Org Blog
There are many different ways to determine the quality of the company and its position concerning life settlements and vitatical settlements. One of the best methods is to look at the company’s blog and the frequency in which it posts updates. In Viatical.Org’s case, the company regularly updates its blog and it does so with pertinent issues to the life settlement industries and fort hose who are interested in choosing a life settlement.
For example, the company recently posted an article indicating that Florida recently added regulations for life settlement companies. Life settlement companies must provide life insurance policy owners with certain information when they are seeking a life settlement. That being said, before transacting with any life settlement company, it is imperative to heck the regulations in one’s state. This way, individuals can ensure that they are privy to the right information and that the transaction is conducted in a legitimate manner.
Immediate Appraisal
There are a number of steps that one must undergone through the life settlement process, but one of the initial ones is to get an appraisal. To conduct the appraisal process, the company recommends contacting them through the phone number on the page or to fill out the online form. Those who do so can get a quick appraisal so that they can determine whether the life settlement is a good option for them. Further, it is important to note that the appraisal is not an offer, but a quote. For a full offer, individuals should speak to one of the company’s specialists and go through the step-by-step process.
Vitatical Summary
Ultimately, a life settlement is a serious decision because it deprives the beneficiary from receiving the death benefit of the settlement. The death benefit can be crucial in helping to pay medical bills and funeral costs. Therefore, one should truly consider whether a life settlement is the right option. To learn more about a life settlement with Viatical.Org, it is best to visit the company’s website.
