Secondary Life Market Poised for Growth.Policyowners are expected to sell more than $100 billion worth of life insurance to third parties in the next decade, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Conning & Co. study. Leading the growth will be healthy senior citizens, according to the Hartford, Conn., firm. Viaticals were once almost exclusively used by the terminally ill Terminally Ill When a person is not expected to live more than 12 months. Notes: Any gifts given out by the afflicted person at this time may be considered as a dispersion of the estate rather than a gift. , but healthy seniors now comprise 40% of the market, up from less than 10% in 1997, Conning said. The viatical vi·at·i·cal adj. 1. or vi·at·ic Of or relating to traveling, a road, or a way. 2. Of or relating to a contractual arrangement in which a business buys life insurance policies from terminally ill patients for a percentage industry sprang up in the 1980s when investors bought life policies from AIDS patients for a discount. The industry dried up when medical advances helped AIDS patients live longer. The study said this influenced the development of the healthy seniors market in the mid-1990s. The trend will gain strength as aging baby boomers See generation X. use these new financial instruments to bolster their retirement funds, according to the study, Viatical Settlements viatical settlement Arrangement by which a terminally ill patient's life-insurance policy is sold to provide funds while the insured (viator) is living. The buyer (funder), usually an investment company, pays the patient a lump sum of 50–80% of the policy's face : The Emerging Secondary Market for Life Insurance Policies. It reports that people age 65 or older currently hold more than $492 billion of life insurance in force. |
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