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Viator: A Comprehensive Guide to Its Legal Definition and Context
Definition & Meaning
A viator is an individual diagnosed with a terminal or life-threatening illness who sells their life insurance policy to an insurance company at a reduced rate. This transaction allows the viator to receive a cash settlement, typically ranging from fifty to seventy percent of the policy's face value. The funds are often used to cover healthcare expenses or enhance the quality of life during their remaining time.
Table of content
Legal Use & context
The term "viator" is primarily used in the context of life insurance and financial transactions related to viatical settlements. This practice is relevant in civil law, particularly in areas concerning estate planning and insurance law. Individuals considering a viatical settlement may benefit from legal templates and forms available through services like US Legal Forms, which can assist in navigating the necessary documentation and procedures.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A person diagnosed with late-stage cancer decides to sell their life insurance policy worth $100,000. They negotiate a settlement of $60,000 with an insurance company, which they use to cover medical bills and living expenses.
Example 2: A viator with a terminal illness sells their policy for $40,000 to improve their quality of life during their remaining time. (hypothetical example)
State-by-state differences
State
Key Differences
California
Requires specific disclosures to the viator regarding the sale.
Florida
Regulates viatical settlements under state insurance law.
New York
Has strict regulations and licensing requirements for viatical settlement providers.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Viatical settlement
Sale of a life insurance policy by a person with a terminal illness.
Specifically involves terminal illness; typically offers higher cash value.
Life settlement
Sale of a life insurance policy by a person who is not necessarily terminally ill.
Can involve healthy individuals; usually offers lower cash value.
Common misunderstandings
What to do if this term applies to you
If you are considering selling your life insurance policy due to a terminal illness, follow these steps:
Consult with a financial advisor or attorney to understand your options.
Research reputable viatical settlement companies.
Gather necessary documentation, including your life insurance policy and medical records.
Consider using legal templates from US Legal Forms to assist with the sale process.
For complex situations, seeking professional legal assistance is advisable.
Find the legal form that fits your case
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