Living benefits
In some life insurance policies, benefits available before death, in
such events as long-term, catastrophic or terminal ilness. This
benefit first became available when companies offering viatical
settlements purchased the life insurance policies of terminally
ill individuals from the insurance companies which issued the
policies. After extracting a portion of the value of the policy
for costs and profits, these companies offered the remainder of the
death benefit to terminally ill policy holders. Insurance companies
have different
rules about how much money can be extracted and how close to death the
holder must be to receive benefits early. The remainder of the value of
the policy, minus interest charges, is awarded to the beneficiaries
upon the death of the holder.
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