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Life settlement like a “viatical” via a private investment group? or life surrender within/to the insurer?

They are very very different.
Are you being required to do this by another entity? Like it’s whole life and you need to cash it in to be Medicaid compliant? You need to clearly speak with your insurance co on this. Their all used to dealing with theses situations due to Medicaid strict rules.
Or are you shopping around for a way to get $ now?

I actually know someone who does “viatical” buys as investments and someone who had done one. For the latter, policy 1M+ done initially by employer within GUL but with key man provision so he got to own it as part of his early retirement due to illness (AIDS related). Paid as a lump sum with pretty small documentation charge. The payout was maybe 70%. The private investors imo need it to be $M+ Policy & the insured is pretty end of the hunt with detailed medical chart & screening to even consider buying it. You can google viatical; there just a small group who do these. You better in detail understand the fine print. There could be tax issues if it’s viewed as taxable income for the year paid.

If this is a lower end policy, like under 500k, I just cannot see an investor ever being interested. It would be more the Wentworth / Peachtree type & if I’m not mistaken those are structured as loans against the settlement (horrors!). Again the details are very important.
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Be exceptionally careful of investment vehicles. It is a job.They make money according to what they can sell. Do not invest in anything that could take away a senior's assets. They have no time to rebuild them. I am not familiar with what you speak of so I am likely misunderstanding a whole lot here.
Go to very reputable investment firms and discuss recommendations with them.
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I am just shopping around for options since the premium to maintain my mothers life insurance policy is around $ 2,300 per month.  It is very expensive and I thought that if I could just sell this policy and save the amount received for her care it would take a burden off of her and give me more peace of mind.   Thanks for your input.
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Wow 27K a year for life insurance!
Is that right??? That’s crazy.
omg any idea of what insurance agent commission is?
What kind of policy is this? Term, GUL, whole? A hybrid?
Why oh why so high? Like M++$ policy? She’s got killer diseases?

$2300 I think kinda could be what you’d pay annually for like a 100k policy if in your 60’s and nothing loco in your medical chart.
Why is it so high??
is it actually not life insurance but a hybrid LTC policy?
Or LTC policy that has entered a new premium range due to her age? There’s been a couple of posts on this situation, the story usually was old bought last millennium LTC policy skyrocketed once they hit their 80’s & elders on now modest fixed income basically couldn’t afford so policy cancelled.

Whats the face value?
any cash value?
Do you know how to read the policy to see what her options truly are? I know I couldn’t on my own figure out insurance stuff, I’d ask & pay for a consultation if need be with an independent insurance agent for a policy review if the answers from the insurance co weren’t clear.

Im guessing (hoping) your mom has a good bit of assets & income to pay her other living costs? Or is this 27k a yr premium due just 1 of many things your discovering that’s all amiss in her life?
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