What Is A Viatical Settlement Agreement
To determine life expectancy, billing providers collect HIPPA release forms and receive your medical records to predict the policyholder`s life expectancy. The cash payment of a Viatical is exempt from tax if it is used to cover certain health costs. Magna is one of the leading viatic settlement companies and can support you today. A 1911 U.S. Supreme Court decision provided the legal basis for viatic settlements.  In Grigsby v. Russell, 222 U.S. 149 (1911), Dr. A. H. Grigsby treated a patient named John C.
Burchard.  Mr. Burchard, who needs a specific surgery, offered Dr. Grigsby to sell his life insurance policy for $100 and agree to pay the remaining premiums.  Dr. Grigsby agreed and, as a result, the first viatic settlement transaction was created.  When Mr. Burchard passed away, Dr.
Grigsby tried to get the benefits.  An executor of Burchard`s estate challenged Dr. Grigsby in the Court of Appeal and won.  The case eventually reached the U.S. Supreme Court, where Justice Oliver Wendell Holmes Jr. rendered the court`s opinion.  He explained in a relevant section that once the provider has an estimate of what it will cost to keep the policy active while the insured remains alive, he can compare those costs with the benefits of the policy. It is important to weigh the relative risks of different investments before making the most appropriate investment decision for you.
Some investors bought back relatively safe but low-paying annuities, only to find that the high-rewarding viatic investment they bought was actually too good to be true. They were then faced with the possibility of losing their entire investment. In some cases, investors have exacerbated this problem by having to pay a penalty for early redemption of a pension and pay income taxes on part of the payment. While investing in viatic settlements can be a profitable business, make sure you`ve done everything you can to make sure you understand the viatic investment product and the risks involved. The main difference between viatic regulations and other financial resources for cancer is the amount of financial support available. Overall, viatic settlement transactions are a good option for cancer patients, as they provide the necessary financial support without fees or expensive interest rates. Viatic regulations are not scams. They are a completely viable way to access the value of your life insurance policy to get money when you need it most. That said, viatic regulations aren`t for everyone, and you need to understand your alternatives before making a financial decision. It should be noted that Michigan and New Mexico regulate viatical establishments, but not standard life insurance establishments. Hopefully, this guide will answer your questions about what a viatic colony is.
Learn more about viatic colony affairs and the viatic settlement process if you want to learn more and determine your qualification for a settlement. For example, a person with a $100,000 policy could receive a viatic statement of up to $70,000 from that policy (settlement amounts vary based on criteria such as age, stage, and policy amount). .