A viatical settlement is the sale of a life insurance policy to a third party, when the insured person is terminally or chronically ill; they have a low life expectancy. There are a variety of reasons why this person may want to sell their policy, including:
Need to raise money to pay existing bills (i.e., medical, house mortgage)
Need money for upcoming costs (i.e., home care, assisted living, nursing home)
Can no longer afford the premiums
In a viatical settlement transaction, life settlement funds are typically the buyers. They evaluate the policy’s death benefit, the life expectancy of the insured, and the future premiums required before making an offer to purchase the policy. Their total cost of the policy is not just how much they pay the seller, but also the future premiums and other transaction costs (i.e. actuarial services, broker fees).
Golden Bridge is a leading New Jersey provider for viatical settlements. If you, or someone you are representing, are ill with a low life expectancy and want to potentially sell a life insurance policy, call or fill out our Request a Quote form to get started.