Monday, January 28, 2008
Don't surrender that life insurance before you find out what it is worth
In last week's column we introduced the concept of viatical settlements, in which terminally ill policy owners may sell their policy to a third party for cash, and can then, in turn, use the cash to pay for medical expenses... Provided that the person selling the policy is terminally ill, this transaction is not a taxable event to the seller of the policy.
These viatical settlements are regulated by the various state insurance departments to prevent abuse. Actually, most modern policies now issued by virtually every life insurance company contain a provision whereby terminally ill policy owners can obtain cash from the policy without having to sell the policy to someone else...
Aiken Standard: Don't surrender that life insurance before you find out what it is worth
These viatical settlements are regulated by the various state insurance departments to prevent abuse. Actually, most modern policies now issued by virtually every life insurance company contain a provision whereby terminally ill policy owners can obtain cash from the policy without having to sell the policy to someone else...
Aiken Standard: Don't surrender that life insurance before you find out what it is worth
Permalink posted by markw @ 5:10 AM 
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