VIATICAL VS ACCELERATED BENEFITS: (1996) An accelerated benefit is an option on an insurance contract for terminally or seriously ill insured's to collect all or part of their death benefits early.
A viatical settlement on the other hand is a sale of the policy to a third party in order to receive benefits for a terminally ill insured. The purchaser must continue making the payments until the insured dies.
The key difference is that under the accelerated benefits program, the insured might still be able to leave some death benefits to a beneficiary whereas with most viatical settlements, nothing is left for beneficiaries. However, per information recently received in mid 1997, an individual can sell just a part of a policy and leave the rest to the beneficiaries.
Prices vary tremendously as does the quality of companies. Numerous emotional and financial issues need be considered. Caution advised.
Affording Care, 429 E. 52nd. St., Unit 4-G, New York, NY 10022-6431
The AIDS Project Los Angeles provides advice on selling a policy. 213 993-1473
American Council of Life Insurance, 1001 Pennsylvania Ave. NW, Washington, DC 20004-2599
The FTC has a free brochure called Viatical Settlements: A Guide for People with Terminal Illness. Send a postcard to Viatical Settlements, Federal Trade Commission, Box P, Room 403, Washington, DC 20580-0001
National Association of People with Aids, 1413 K St. NW, Washington, DC 20005
National Viatical Association, 1200 19th St. NW, Ste 300, Washington, DC 20036, 800 741-9465 offers a free list of its 14 members that buy life insurance policies from the terminally ill.
Viatical Association of America, 1200 19th St. NW, Ste. 300, Washington, DC 20036-2422, 202 429-5129 has information on 30 companies- about half of all in existence.
A 1997 book, called Cash for the Final Days: A Financial Guide for the Terminally Ill & their Advisors by Gloria Wolk is the " first consumer advocacy book on Viatical Settlements"
A few listings of Viatical companies are shown below. However prices will
vary considerably, so at least three "bids" are suggested. Those with "F"
are funding companies which means they have their own source of money to
buy polices. Those with "B" match polices with other investors and act as
Brokers. All of those below are licensed in California. Always check licensing
requirements in each state. State Insurance Department phone numbers are
listed in "Moody's Directory".
Companies
Accelerated Benefits of Washington 800 227-8447 F
Affirmative Lifestyles, Inc. 800 876-2991 F
American Life Resources Corp. 800 750-3383 B
American Life Resources 800 473-9172 F
Assured Lifetime Benefits of Illinois 800 217 0707 F
Dedicated Resources Inc 800 677-5026 F
Fiedler Financial 800 905-0114 B
Life Benefactors, 800 285-5152 F
Life Entitlements Corp. 800 420-1420 F
Lifeaid 800 LIFEAID F
LifeTime Benefits 888 766-7744
Lifetime Options, Inc. 800 999-5419 F
Medicap Viatical Settlement 504 927-3433 F
Neuma, Inc. 800 457-7828 F
ViatiCare Financial Services 800 333-2249
Viatical Settlements Funding. 800 222-3771 F,B
Dignity Partners had indicated in 1996 that it was curtailing its business in California since new and effective AIDS drugs would probably reduce the need for a number of its settlements. In 1997, it shut its doors
BE CAREFUL- DO YOUR HOMEWORK!!!
Ability Life Trust, Inc.
Affording Care