Is it a Good Idea to Sell the Life Insurance Policy?

It is the duty of a wrongful death lawyer to arrange and make settlements the moment a life insurance policy holder passes away. He must ensure that the survivors will be given the rightful amount of money or whatever is according to the will. Other than that, he needs to ensure that there is a life settlement investment; otherwise, there wouldn’t be any money to be given to the distributors. This is what would happen when a life insurance policy holder sells his policy before he dies. Some of the insured are forced to sell for survival. They may have been diagnosed with a terminal ill, met an accident and was never provided enough compensation with regard to the damages and the expenses. Meanwhile, viatical settlement may involve healthy policy holders who are not suffering with terminal illness. The policy holder, also known as the viator decides to give up the ownership and control of the policy.

Filing for a wrongful death claim may be complex as it may seem. Although it involves the survivors wanting to make settlements as they are to receive the reward according to the final judgment from the courts and according to the insurance policy bought by the deceased loved one, it has to be ensured that everything is right into place. This is where wrongful death attorneys come in. Some people may regret it in the end as they have sold their life insurance policy, and for some, they have accepted the fact that there wouldn’t be anything left whenever the policy is sold.

The Process

Before selling the life insurance policy, it is wise and important to think it a million times on whether or not selling it is the right decision. As soon as money has been raised from the investors to purchase the interest in life insurance policies, the viatical broker together with the policy holder have to negotiate the price for the life insurance policy for the viatical provider. Usually, the percentage of the policy’s death benefit will be the negotiated price.

To give a clear view on the process and how the transaction works, say for a policyholder may be able to sell his insurance policy for $100,000. This is 50% of his entire life insurance policy. The issuer will be collecting $50,000 from the investor and gives it to the policyholder in exchange for the policy. This will be able to pay a total of $100,000 whenever the policyholder dies.

In cases for wrongful death lawsuits, claims are given to the survivors or whatever is in the insurance policy. However, should the policyholder has sold his policy, his loved ones will no longer have anything except for the right amount of compensation with regard to the case of a wrongful death. Normally, the person at fault takes his part and should be giving reward to the deceased’s loved ones.

In conclusion, it is difficult to decide whether or not to sell the insurance policy. It is a major decision on whether or not surviving is worth than leaving the Earth with nothing for your loved ones.