Viaticals: What Every Cancer Patient Should Know
The June Edition of CancerWire focuses on viaticals and why cancer patients should be aware of this financial tool. http://www.cancermonthly.com
(PRWEB) June 17, 2005 -- “What’s a viatical? Most cancer patients have never
heard about this but they should,” explained Michael Horwin, Manager of Cancer
Monthly. “It’s a financial tool that allows people with life threatening
diseases like cancer to cash in their life insurance and get up to 80% of its
face value.”
The word viatical comes from the Latin word viaticum, which
were the supplies given to Roman officials as provisions to trade with as they
embarked on a long journey. When a person over 65 who is relatively healthy
liquidates a life insurance policy it is commonly called a “Life Settlement.”
Most types of life insurance policies qualify and both Viatical and Life
Settlements are regulated by state insurance departments.
Mr. Kelly
White was diagnosed with a life threatening disease in 1996 and subsequently
sold his life insurance policies to Life Partners (1-800-693-0062) http://www.lifepartnersinc.com Mr. White explained to
CancerWire that he sold his policies for several reasons. “First, I wanted to
protect my family. I did not want them to have to pay for funeral expenses if I
passed away. I also did not want any of my heirs to be fighting over the
proceeds from my policies. Second, in case I became so sick that I could not
work, I wanted to have a nest egg set aside; money that I could use to take care
of myself. Third, I wanted to do something fun with the money. I wanted to spend
time with my family and go on vacation. Which we did.”
In fact, after a
policy holder sells their policy, they can use the money for any purpose such as
to pay for medical bills, therapies not covered by insurance, or for a better
quality of life. Upon the sale, all rights and obligations of the policy are
transferred to the new owner. The new owner will name a new beneficiary of the
policy who will collect the proceeds upon the insured’s passing.
Carole
Fiedler, a viatical and life settlement professional with years of experience
working with cancer patients (1-800-905-0114) http://www.innovativesettlements.com explained that the
industry has recently undergone changes with the type of policies that find a
ready market. “Cancer patients over the age of 65 have a much greater likelihood
of selling their policy in today’s market. Although most policies over $250,000
can be sold if the insured has a terminal diagnosis and is under 65 in some
states, in these cases the lack of competition may limit the amount of the
actual settlement,” Ms. Fiedler explained.
There are companies that
specialize in these types of transactions. These are brokers who facilitate the
sale, and providers who actually purchase the policy. However, patients are
cautioned to be extremely careful in choosing a viatical company as the industry
has had problems with some unscrupulous operators. Mr. White emphasized, “It is
very important to be careful about which company you work with. For example, it
is important that the seller of the policy and the buyer of the policy don’t
know each other. A reputable company will protect your privacy and your medical
information. Also, a reputable company can provide you with multiple offers.”
Tips from Cancer Monthly in selecting a reputable company include:
·
Since licensing varies by state, you should check with your state’s Department
of Insurance to obtain a list of licensed companies. The National Association of
Insurance Commissioners (NAIC) www.naic.org provides a link on its homepage to each state's
Department of Insurance (DOI) website.
· Research any company before you give
them any personal information.
· Ask questions.
· Get professional
advice regarding types of living benefits available and the positives and
negatives of each.
· Talk to a lawyer or a financial planner to help you
decide what is best in your own case. (Find out if Medicaid or other benefits
will be affected.)
Two companies with experience with both viaticals and
life settlements and who understand the financial issues faced by cancer
patients include: Life Partners (1-800-693-0062) http://www.lifepartnersinc.com and Fiedler Financial's
Innovative Settlement™ Solutions (1-800-905-0114) http://www.innovativesettlements.com
To read the full
CancerWire edition on Viaticals go to http://www.cancermonthly.com
For more information
about financial support for cancer patients go to http://www.cancermonthly.com/financial.asp
For more
information about legal options for mesothelioma patients go to http://www.gpwlaw.com/cm/
For more information about
immune boosting products in cancer go to http://www.cancermonthly.com/immune.asp
For more
information about clinics that treat cancer go to http://www.cancermonthly.com/clinics.asp
For more
information about important tests before you start chemotherapy go to http://www.cancermonthly.com/chemotherapy.asp
Of
course, none of this information in CancerWire is a substitute for professional
legal, financial, medical advice, examination, diagnosis or treatment and you
should always seek the advice of your physician or other qualified health
professional before starting any new treatment or making any changes to an
existing treatment. No information contained in Cancer Monthly or CancerWire
including the information above, should be used to diagnose, treat, cure or
prevent any disease without the supervision of a medical doctor.
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Source : http://www.prweb.com/releases/2005/6/prweb251655.htm