By Cathrine Thomas
Financial crisis in the course of an illness can set a back forth and it ca make the matter only more compound hence it is essential that you use the process of viatical settlements. Through this process of viatical settlement a very sick person would be relieved from all his worries. What he can do is sell the insurance policy at very lump sum money. In the case mentioned above the seller has been benefited by the lump sum amount and on the other hand the buyer would be benefited by the policy benefits on the death of the person. There are a number of provisions that have been laid down by the law so as to ensure that there are no unscrupulous elements that exploit the vulnerable class of elements. The first and the foremost thing which has to be kept in mind is that the life settlement companies must compulsorily be registered and licensed to operate.
The next important thing which has to be remembered is that the contract must be signed by the two parties that is the policy provider and the purchaser of the policy. This simply states that there should be an existence of a written document between the two parties that should state the terms and conditions through which the life settlement providers are providing the compensation package to the seller of the policy. It is also essential that there should be a specification of sale and there should be a transfer of the net deceased benefit or in particular the ownership of the policy to the purchaser of the policy. There will also be a specific mention of the broker or the funding company's address and its name. In addition to this it is essential that in addition to this the seller must even specify the other benefits that the seller will have from the life settlements. This treatment can be treated in a similar way of transfer or sale of the net death benefit or the ownership to the purchaser of the policy.
Another thing which is to be kept in mind is that the proceeds from the viatical settlements may or may not have tax benefits. Hence it is essential that before signing the agreement the holder of the policy must contact a lawyer who in turn can check out about the probable estate and the rebate conditions.
It is essential that before handing over the policy to the owner a lot of research must go into it. The research can be done by searching a broker or other people from the internet or from your own know how. From the internet there is a lot of scope to get the information in a very comfortable way.
Another important fact which is to be kept in mind is that the people who are suffering from life threatening diseases may note in a position to take he benefit of the life insurance policy hence it is essential that the person goes in for viatical settlements that acts as a sound help to them.
Cathrine is a SEO Copywriter of life settlement. She has written many articles on Premium finance service, Senior life insurance settlement, Life insurance settlements, ...etc. For more information visit: Life Settlements or email us at lumlaatseg@live.com
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