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Real Life Cases |
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What is the difference between Life Settlements and Viatical Settlements? |
Rationale for Individuals
Why would an individual choose a Life Settlement?
- Financial distress / Unable to meet future premium payments
- Need cash for major expenses (e.g.: medical treatments)
- The owner / insured has outlived the need for coverage (i.e.: all major expenses are paid for)
- Needs different coverage / different features (70% of all Settlement proceed purchase more appropriate coverage)
- The owner / insured has outlived their beneficiaries.
Rationale for Family / Estate
When is a Life Settlement right for a Family or an Estate?
- Change in beneficiaries (e.g.: divorce, death of dependents)
- Second to die policy holder (i.e: spouse has passed)
- Material change in value of estate
- Fund long-term care programs
- Immediate gifts to family members
Rationale for Business
When is a Life Settlement right for a Business?
- Change in key executives / partners
- Change in succession plan (e.g.: family business)
- Need cash / Seek to monetize assets
- Fund deferred compensation programs
- Fund severance packages
- Pay off company debt