A viatical association is typically structured as a non-profit organization. It often represents members of the viatical life settlement industry, businesses associated with the viatical settlement industry, consumers, or some combination of the three.
One of the primary functions of a viatical association is the promotion of legislation, regulation, and best standards of practice for viatical settlements. Among other things, their efforts result in increased awareness of the viatical industry among consumers. This helps consumers get more competitive offers for their viatical settlement policies.
A viatical settlement policy insures an individual who has less then two years to live. An investor buys the policy for an amount less than the death benefit but more than the cash surrender value. The amount paid for the policy often exceeds half of the death benefit of the policy and is based on the insured’s life expectancy, the premiums payable for the policy, and other factors.
Before considering a viatical settlement, consumers should learn as much as possible about the process and then carefully consider the impact the decision to sell or keep their policy might have on beneficiaries. A viatical association such as the VLSAA is a good starting point for unbiased information.
Using LIVEpdq is the next step to getting a ball park estimate of what the policy might be worth in case you should decide to sell.