Viatical settlements enable someone facing a terminal illness to utilize the present day value of their life insurance policy to ease the financial burdens that can be caused by the high costs of medical care. The impact of the AIDS epidemic in the mid eighties gave rise to the first wave of purchases of life insurance policies from terminally ill individuals. Shortly thereafter, the term "viatical" (from the Latin viaticum, meaning money or provisions for a journey) was coined to differentiate this type of settlement from other types of transactions offered by insurers. A viatical recognized by IRS as being tax exempt requires the Insured to secure a physician's letter, stating that their is a reasonable expectation that the Insured will die within 24 months or less. In the mid 1990s, AIDS treatments altered the demographics of death, such that in America death by AIDS no longer makes the Top Fifteen, and averages around 14,000 to 15,000 annually. Consequently, very few providers purchase policies from HIV Positive or AIDS sufferers. Nonetheless viaticals have become an important financial option to many terminally-ill individuals. By selling a policy, many of these policy owners can ease the financial burdens brought on by increased medical costs and compensate for a loss of income due to illness.
No further monthly premium expenses
Immediate ease to financial burdens
Additional funds to compensate for loss of income
Releases funds to seek alternative treatments not covered by health insurance
Funds to Pay off Debts Now, Instead of Burdening Family Members in the Future
|Not Registered In Texas|
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