Final Thoughts On Viatical Life Settlements

Category: Finance.

Viatical life settlements are the latest craze with investors. But not everyone can be the winner- someone has to lose- but the question is who.

It seems making money off of one s death has become even easier with viatical life settlements- and for investors it often pays out fairly well under good circumstances. How to Profit From Viatical Life Settlements. When a terminally ill patient receives the news that they are going to die within an allotted amount of time, it s quite likely that their family will be receiving a health insurance check on their death. Viatical life settlements work based on terminally ill patients. But companies have found a way to get in on the money, by offering terminally ill patients cash in exchange for making the company the beneficiary of the health insurance that is collected on death. But all isn t golden in the equation. This way, the company may get a return on investment while the terminally ill patient gets extra money to enjoy their last days with.

If everyone won in the situation, that d be just dandy. Outstanding health costs and court fees can also arise in the case of a death- all of which the family will have to pay without the help of the patient s health insurance plan. Sadly, the family members of the ill patient will lose out on money they may need for funeral expenses and taxes. The viatical life settlement plan, works great for, thus patients who are responsible with their money. Many life insurance policies can reach as high as$ 100, 000 for the average consumer, so there would be plenty of leftover money for death- associated expenses. It enables terminally ill patients to stop paying premiums, while at the same time enabling them to pay bills and enjoy life while they can.

Other forms of life settlement plans exist, yet viatical life settlements are the most popular among investors. Viatical life settlement fraud is popular among crime rings in today s world. They offer the quickest return on investment, and give good payouts and lesser risk than other forms of life settlements. (In which case other life settlements include the elderly who are of poor health, but aren t necessarily going to become deceased anytime soon. ) A Note on Viatical Life Settlement Fraud and Risk. Criminals may act as terminally ill patients, forging documents that state they have very few days ahead to live. The investors then lose the entire investment, making fraud the biggest risk on the industry. When investment companies buy their plan, they make off with the money.

Otherwise, viatical life settlement is a relatively risk- free business if performed correctly. To help their chances, companies will often pay clients much less than what the payment on death is worth. Companies either tend to make a profit, or make a majority of the initial investment when the patient dies. Final Thoughts on Viatical Life Settlements. It comes down to the basic reason on why health insurance exists in the first place: to help aid loved ones through the financial and emotional stress of a death in the family. Viatical life settlements are great for investors and patients, but care should be taken so as to not put family members in a tight bind upon one s death.

Viatical life settlements, should be carefully, thus considered before impulsively accepting the check from hopeful investors.