Abstract

Journal of Actuarial Practice

Volume 5, Number 1, 1997


Accelerated Death Benefits, Viatical Settlements, and Viatical Loans: Options for the Terminally Ill

Paula Schmidt

Abstract

There are three options available for terminally ill insureds who are interested in accessing all or part of the face value of their life insurance policies: through the life insurance company (accelerated death benefits), through a viatical company (a viatical settlement), or through a viatical loan company (a viatical loan). This paper explores the definitions and tax regulations, calculations, and the claims process associated with accelerated death benefits and viatical settlements and loans

Key words and phrases: life expectancy, claims, taxes, regulations

Paula Schmidt
Lincoln Benefit Life,
PO Box 80469, Lincoln
NE 68501-0469,
USA

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