Who is a good candidate for a viatical/life settlement?
Anyone who is terminally ill qualifies for a viatical settlement. (Terminal is currently defined as having a life expectancy of 5 years or less.) A life settlement, however, is a senior aged 70 and older with up to a 15 year life expectancy. The payment to your client varies dependent on such factors as: life expectancy, policy amount, premium costs, outstanding loans, etc. Life settlements come from people who do not want or need their life insurance anymore. They may have purchased a policy to get their children through college and now those children are all grown up with families of their own. It may be a corporation that owns a policy on a former CEO. It may also simply be for the client who does not want to pay any more premiums. Youy client may be cashing in the policy for the cash value. We may be able to get them much more than the insurance company is paying. If you are a good agent/CFP, you want to get the best deal for your client – every professional agent/CFP does that! If
