VIATICAL & LIFE SETTLEMENTS CONSUMER INFO

for Prudent Sellers and Investors

We do not buy
or sell
viatical or life settlement contracts

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(not the actual cover)

Bankruptcy and Viaticals

Scenario I: Your clients invested in viatical and life settlement contracts provided by company XYZ. XYZ files for bankruptcy protection. Your clients learn that they do not own the contracts in which they are invested: XYZ is owner. Or your clients learn they are not named as beneficiaries: XYZ Trust is beneficiary. Or your clients learn that they are named as owners or beneficiaries but the court orders sale of these contracts in order to liquidate and pay cash to investors. During this period, your clients are sent bills for their share of premiums. The actual amount they may receive, eventually, is likely to be less than the total of principal invested plus premiums.

Scenario II: Your clients, investors in viatical and life settlement contracts, file for bankruptcy protection. How do you value these investments? Is the best choice to attempt to resell the investments? If so, how do you find buyers?

Scenario III: Your clients are XYZ Viatical & Life Settlement Company. Or your clients are XYZ Marketing Company, local sales agents for the viatical company. They file for bankruptcy protection. How do you value the contracts that they sold and which have your client listed as owner?

Scenario IV: Your client files for bankruptcy protection. The bankruptcy trustee wants to sell your client's life insurance in order to provide more cash for creditors. Your client has dependents and wants to keep the insurance for the family. Additionally, your client's health would not qualify him/her for a new policy at an affordable price. How do you dissuade the bankruptcy trustee, who threatens to get court orders to force your client to cooperate with a sale of the policy?