by Guest » Thu Oct 30, 2008 07:19 am
Hi..
Whats the duration of a life settlement transaction?
How do I come to know whether the insured is still living? How do I go about canceling the contract as a seller? Mermaid-attitude
Whats the duration of a life settlement transaction?
How do I come to know whether the insured is still living? How do I go about canceling the contract as a seller? Mermaid-attitude
Posted: Thu Oct 30, 2008 07:45 am Post Subject:
Hi, it might take you around 3 months for the entire transaction process to be completed. If it takes more time you should not get confused. The entire process involves a careful analysis of your medical records and it is not always that much easier fetching these records for such purposes. If you'd need more time to get access to such records it would automatically slacken the transaction process.
ArindamSenIndies
Posted: Thu Oct 30, 2008 10:57 am Post Subject:
How do I come to know whether the insured is still living?
Most access the Social Security Administrator Database, which frees-up the SSN after the death of the individual. Also the life settlement providers periodically call up the person assigned by the insured to look after the issue of settlement. However, many states bar the providers to call up the insured for more than the permitted number of times.
Hope it helps.
~Jeremy
Posted: Thu Oct 30, 2008 11:01 am Post Subject:
How do I go about canceling the contract as a seller?
Once you get the payment from the provider..you may have a maximum of 15 days to cancel your decision about selling the policy. In case you'd decide to cancel the settlement agreement, first of all you'd need to reimburse the provider with the payment that you received from them. On the other hand you'd need to pay for the premiums that the provider may have paid on your behalf.
BarbieL
Posted: Thu Oct 30, 2008 11:01 am Post Subject:
Hey, what if the insured die shortly after selling the policy? Will I get the benefits or the contract will get void?
Posted: Thu Oct 30, 2008 11:07 am Post Subject:
Hey, what if the insured die shortly after selling the policy? Will I get the benefits or the contract will get void?
Well, that may depend upon how short the period is….if the insured dies before the 15th day after signing the contract then the selling contract will automatically get void and the benefits will then go to the beneficiary of the plan. However, the provider will deduct any amount that it has paid to the insured as a part of the selling contract and also the premium paid by the provider to maintain the plan.
~Jeremy
Posted: Thu Oct 30, 2008 11:15 am Post Subject:
I've also heard a term called viaticals settlements. How does it differ from the typical life settlement?
Posted: Thu Oct 30, 2008 11:22 am Post Subject:
Viatical settlement and life settlement is same in the process. However, they differ in their nature. The viatical settlement is when a terminally ill person sells his/her life policy to a third party. And from the provider's point of view is a better deal since the chances of the death of the policy holder is high in such cases. Hence, in case of viatical settlement the seller is likely to receive higher value for the deal.
In case of viatical settlement the policy holder may receives upto 50% to 80% of the policy face value as the settlement price whereas the life settlement may fetch 20% of the policy value.
Hope I was able to help. Pls ask if you have more queries.
Thanks,
Rupert
Posted: Thu Oct 30, 2008 11:30 am Post Subject:
Well, its not that you can sell your life plan only when you are terminally ill. The life settlement is gradually becoming popular amongst the seniors as an option to encash their redundant life policy in return of cash. Mostly seniors of 65 years and above consider the option of life settlement to meet the needs of fund for other necessary expenses. However, if you still have a dependent spouse or child you may need to weigh all the aspects before deciding for the life settlement.
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