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1) Why should I consider a Viatical Settlement on my life insurance policy?
People sell their life insurance policy for many reasons. The most common is to create a cash buffer to offset increases in expenses and the reduction in income that often accompanies catastrophic illnesses.
Selling your life insurance policy and protecting your family need not be mutually exclusive. The issue is to balance your needs today with future needs of your family. There are many strategies that you can employ to meet both objectives. We will be happy to discuss options with you.
2) Can I change my mind?
Absolutely! Completing an application does not create a contract that commits you to selling your policy. The application merely allows Wilbanks & Associates to collect and verify information necessary to determine if you can sell your policy and the amount to sell it. You have the right to reject any offers. With most vendors, you can resend the transaction within 15 days of receipt of funds.
3) Once the transaction is complete, who pays the premiums?
All future premiums are paid by the Senior Settlement Provider purchasing your policy.
4) Are there any provisions in my policy that could prevent me from engaging a Viatical Settlement?
Most life insurance policies contain a contestability and suicide exclusion period that extends, typically, for two years. The contestable period is a window within which the insurance carrier can challenge or rescind the individual's life insurance coverage (usually for either misstatement or medical fraud relating to the application).
The suicide exclusion is a defined period within which the insurance carrier can deny a claim concerning death by suicide. Many Viatical Settlement Providers prefer that a policy be in force for at least two years before considering the purchase of a policy.
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5) What are the tax implications of a Viatical Settlement?
We recommend you speak with a tax advisor. Viatical Settlements are tax-exempt if you meet the criteria: the regulatory definition of a person with a catastrophic or chronic illness and the settlement comes from a licensed broker.
6) Do I qualify for a settlement with all Viatical Settlement companies?
Probably not. Each Viatical Settlement Provider has its own underwriting criterion that one would have to meet before they would consider the purchase of your policy. Since the criterion can vary dramatically from company to company, not only are you likely not to qualify for a settlement with each provider, but also settlement offers can vary dramatically from company to company.
7) Why should I consider using Wilbanks & Associates to assist me with a Viatical Settlement?
Since Wilbanks & Associates is not a Senior Settlement company, but rather acts as a client representative, we have contracts with almost all of the Senior Settlement providers in the industry. We use our vast knowledge and experience to search for the source that can provide you with the highest settlement amount.
8) Will Wilbanks & Associates charge me for its services?
At no time will you be billed or will Wilbanks & Associates charge you a fee. The easiest way to understand how we are compensated is to understand the relationship between travel agents and airline carriers. Airline carriers build in compensation to travel agencies to take over certain functions, such as booking airfares. The agent, then, has the ability to shop among airlines for the best rates for its clients.
We will be happy to discuss those options with you. Contact us.
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