AEGiS-PRn: Foundation Planning Group: Financial Assistance for Terminally Ill People PRNewswireImportant note: Information in this article was accurate in 1997. The state of the art may have changed since the publication date.
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Foundation Planning Group: Financial Assistance for Terminally Ill People

PR Newswire, 810 Seventh Avenue, New York, NY 10019 - May 1997.


BELLEVUE, Wash., Aug. 6 /PRNewswire/ -- People suffering with a terminal illness and in need of financial help may sell their life insurance policies to viatical funding companies at a discount to their face value. In some cases the cash received is free from federal income taxes.

Viatical funding companies raise money from investors to pay the terminally ill for their policies. The investor is named as an irrevocable beneficiary on the policy.

A law which became effective in 1997 grants exemption from federal income taxes for people with a life expectancy of 2 years or less who sell their policies to a viatical funding company. An investor who puts up money to purchase such a policy may receive a 28% return on his money. The return is guaranteed by the insurance company which issued the seller's policy. Bellevue, WA based Foundation Planning Group, Inc. helps investors find suitable viatical funding programs in which to place their money. "Generally, the programs have maturities of 1, 2, or 3 years with returns ranging from 12% to 42%," said the firm's president, Rod Schrader. "This is a great example of the private sector solving a social problem. It is a win-win for the terminally ill who are in need of money now and the investors who put the the money," he said.

"For individual investors, viaticals are an alternative to other savings plans such as CDs, bonds and annuities. What attracts both corporate and individual investors is the higher returns, the safety and the humanitarian aspect," said Schrader.

Foundation Planning Group, Inc. can be reached by phone at 800-737-1592.

CONTACT: Rod Schrader of Foundation Planning Group, Inc., 425-603-9100, or 800-737-1592, or fax, 425-603-9066/


Keywords: VIATICAL; VIATICALS

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