What are the purchasing requirements of viatical settlement funding companies and how much can the viator expect to receive in viatical settlement proceeds for his/her policy?
In general, viatical settlement funding companies pay between 50% and 87% of the policy’s face amount. Each funding company has its own set of underwriting criteria upon which it bases its bids; however the purchase price paid by a funding company will be based upon the anticipated life expectancy of the viator (the shorter the life expectancy, the higher the bid); the annual premium; the type of policy and the rating of the life insurance company; the market rate available on similar investments; and whether the policy is beyond the contestability period which is generally accepted in the industry as two years from the date of issue or reinstatement (if it has ever lapsed).
Related Questions
- What are the purchasing requirements of viatical settlement funding companies and how much can the viator expect to receive in viatical settlement proceeds for his/her policy?
- What are the purchasing requirements of viatical settlement funding companies and how much can the seller expect to receive in viatical settlement proceeds for his/her policy?
- Do all viatical or senior life settlement funding companies offer the same net proceeds?
