During the beginning of the Aid’s epidemic, very little was known about the disease. This disease gave little chance for survival due to the fact that doctors did not know how to treat it. When traditional forms of treatment failed, the experimental drugs and procedures came into play. Health Insurance Company’s policy and procedures did not cover undocumented trial based treatments or procedures. These treatments were to be paid out of pocket by the individual and family members. With the extremely high cost of experimental drugs, the viatical industry grew. Currently all 50 states and Puerto Rico participate in the viatical settlements. With the growth of this industry came restrictions and regulations; therefore, not all states follow the …show more content…
According to the Life Insurance Settlement Association, “43 states and the territory of Puerto Rico regulate life settlements, affording 90% of the U.S population protection under comprehensive life settlement laws and regulations.” Terminally ill patients with twenty four months, or less than twenty four months, left to live can sell their life insurance policy to a third party for more than its cash value, but less than its net death benefit. The Viator would name the third party agency as beneficiary of the death policy for 50% to 80% of the value in cash, and that would be received in a lump sum. The third party buyer would then be responsible for the monthly payment of the benefit. The process can take up to 90 days, but once the application is accepted, it normally takes approximately two to three weeks to receive a lump sum. This settlement allows for financial freedom and provides quality of life until death. If the individual who wishes to receive a viatical settlement is believed to be terminally ill, that person will be able to receive all funds tax free under Federal rules. This stipulation only applies to an individual viator and can not to be considered a business, and must have a valid license from the respective