Is Anyone Here Knowledgable About Viaticals?

[InsuranceShark]

Im interested in learning more about viaticals. Problem is there isnt alot of information on the internet about it. Id like to get into the business because what iv heard about it makes it sound like the greatest business ever, but with loss of sleep at night for some people I would imagine.

 

[somarco]

Of course it sounds good.

Some vendors market a single policy while others pool the policies, almost like a mutual fund.

Some vendors sell non-conforming policies while other market conforming policies only.

Google Empire Financial and American Benefits Services for chuckles and grins.

Personally, I don't know why anyone would want to jump in this market.

 

[trustlife]

Viaticals are usually only available to individuals who are expected to live fewer than two years. They have a pretty negative reputation, but originally they were popular among men suffering from AIDS in the late 1980's (back when there was little care for HIV+ individuals and they generally didn't live long after diagnosis)

They're essentially no different than a bond in financial instrument terms (zero coupon); the only difference is that you don't know the maturity period up front.

has some good general info at trustlifesettlement (dot) com if you're trying to break into the business though

 

[InsuranceShark]

yea i know that much. Its usually for someone with a terminal illness that has a life insurance policy already. Then you settle with them. Are their firms that do this?

 

[somarco]

Insurance carriers were at one time, and probably still are, the largest purchasers of viaticized contracts. VALIC used to have a significant portfolio of viaticals but can't say if they still do or not.

 

[lifesettlementadvisor]

There are still a handful of funds that purchase viaticals. Very simply, the difference between a life settlement and a viatical is the duration of the life expectancy report. A policy is classified as a viatical if the life expectancy report is 24 months or less.

The largest purchaser of viaticals is a group called ViaSource. If you do get into the market, either life settlements or viaticals, it is still a good idea to work with a life settlement broker who is a member of LISA to help you navigate through the market.

 

[InsuranceShark]

Cool how much do you make doing viaticles or life settlement? Id imagine a pretty good living.

 

[lifesettlementadvisor]

A life agent should not "make a living" doing viaticals or life settlements. These should be additional options that you can present to clients when necessary.

If you want to be a life settlement broker, than you will spend the vast majority of your time marketing to life agents.

Comp ranges vary depending on the case. Most providers will give you a gross offer (some with comm caps) and you negotiate your commission with the policy owner. Avg caps are the 6% of face or 30% of gross offer -- usually brokers take about half that and split it with the life agent.

 

[VolAgent]

Insurance carriers were at one time, and probably still are, the largest purchasers of viaticized contracts. VALIC used to have a significant portfolio of viaticals but can't say if they still do or not.

Isn't this the definition of irony?

 

[somarco]

Carriers know a good deal when they see it.