Viatical Settlement Companies

Death may be the only sure thing in life, and gambling on it may sound disconcerting to many. Viatical settlements involve selling the life insurance policy of a terminally ill person to a company who pays a lump sum cash amount in return for the policy. The companies buy the policy at a reduced rate of the face value, sometimes as much as 50% of the face value, and then collect the death benefits after the person’s demise. Morbid as they may sound, but viatical settlements can provide relief to terminally ill people whose life expectancy has been predicted to about two years or so.

Viatical Settlements

The concept of viatical settlements works on the premise that a person with a terminal disease can sell his life insurance policy for less than the face value. The person can get lump sum cash and the buyer can collect the benefits of the policy after the original policyholder’s death. It sounds a bit grim but then there are always the harsh aspects of life. The longer the life expectancy, the less expensive the policy. But then life rarely follows a logical road and so the element of risk is there if the original policy holder’s life expectancy increases with the passage of time. It is after all a gamble on death. If the seller dies sooner than expected, you collect a higher return and on the other hand, if the person lives longer than expected, you will collect a lower benefit. Added to this is the fact that you can also end up losing your principal investment if the person lives long enough and you have to pay the additional premiums.

Structured Settlements

A structured settlement is an arrangement with the insurance company that involves periodic payments obtained as a substitute for release of liability. As indicated, structured settlements are often obtained as a result of lawsuits and are an excellent alternative for lump sum settlements. Structured settlements are usually to be paid from the gross income to the injured party or as workers compensation settlement by the company against which the case has been filed.

Neck Injury Settlements

Neck injuries are caused by automobile accidents, or by physical trauma like slips and falls. Most neck injuries are not serious, but some that are seemingly innocuous can cause major problems later on. It is always best to consult a physician and a personal injury settlement attorney if you have been involved in an accident and suffer a neck injury.

Licensed Senior Settlement Company

A Senior Settlement Company is an establishment that buys unwanted policies from senior citizens and sells them off to other interested parties. The company becomes liable for all further premiums on the policy and its benefits, once the policy is bought by it from the original policyholder. The responsibilities of Senior Settlement Companies include buying the policy from the senior policyholder, customizing it according to present-day requirements, introducing it to interested parties and inviting bids, selling it to the highest bidder and compensating the original policyholder a lump sum amount in cash. These companies also maintain the current funds of the policyholder in an escrow account till such time as the policy is sold to someone else.

Loan Against Senior Life Settlements

Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount on the maturity of the policy. But if the owner wishes to keep the policy and yet have an urgent financial need, the simple solution is to borrow a loan against the policy.

Senior Life Settlement Policies

Senior citizens above the age of 65 years can sell their unwanted policies to other parties and get a lump sum settlement in cash. Such a Life Settlement is done when the person requires money for some urgent purpose, to invest in business or to simply fulfill some lifelong desire.

Five things NOT to do when Selling your Structured Settlement

One: Don't sell to the highest bidder. Two: Believing the funding source when they say you will have your money in a couple of weeks. Three: Thinking you have to sell the whole settlement or annuity. Not determining how much you really need. Four: Letting emotions or being desperate control our decisions. Five: Check out the reputation of the structured settlement/annuity purchaser.

Is Selling A Structured Settlement A Good Investment?

Before one decides to sell his structured settlement for another investment opportunity; it is worthwhile to consider the pros and cons of such an action. The most important advantages of structured settlements include regular payments that are free from income tax and are secured by state and federal laws.

How Does A Structured Settlement Annuity Work?

The process of arriving at a structured settlement is through negotiations concerning the value of the annuity and payment schedule. The process involves primarily a claimant and the life insurance company; if the structured settlement annuity is related to litigation, it will involve the defendant as well.

Structured Insurance Settlements

If you are entitled to receive an insurance settlement, you can claim it either in a lump sum or as a structured insurance settlement. Both methods have their pros and cons.

Lawsuit Cash Advance Loans

Lawsuit cash advance loans share the same genre as settlement loans. The difference is the loan’s entire amount is paid in full in advance. In some cases, the finance institution may agree to make monthly payments to help the borrower manage finances more efficiently. Such financing cannot be termed money lending per se, because the lending institution only collects if the recipient’s case is successful. These kinds of ‘non-recourse’ loans do not, fall under the purview of money lending laws.

Pre-Settlement Loans

Pre-settlement loans are exactly what the name implies – cash payments to plaintiffs given in anticipation of a favorable settlement. Pre-settlement loans fall under the ‘non recourse’ category of legal loans, meaning that the extender of the loan has no recourse to collection of the money in case the plaintiff’s case is not settled favorably.

Get a Cash Payout On a Structured Settlement

It is not uncommon for people who are beneficiaries of a structured settlement to sell some or all of the settlements for a cash payout. The reasons for selling a structured settlement vary but the process for obtaining cash for a structured settlement is the more or less the same across all states in America.