Insurance talk
to focus on terminal
illness, business

By Russ Lynch
Star-Bulletin

A Hawaii group will explore how business owners and individuals can use a unique insurance product that lets the terminally ill cash out their life insurance policies.

The Hawaii Association of Life Underwriters on Thursday will hold a morning seminar on "viatical settlements" in which an insurance company will pay off a life policy ahead of time for someone who is declared "terminally or chronically ill."

In 1996 Congress allowed such individuals or couples to turn in a life insurance policy for cash, tax-free.

The association is bringing in a nationally recognized expert on the subject, Tom Moran, founder of the Heritage Group in Oklahoma City, for the 8 a.m. to 10:30 a.m. seminar at the Honolulu Country Club.

There are new markets for viaticals, the underwriters say. For example, a business owner with 12 years or less of life expectancy might be able to use it to finance or assist the sale of the business.

Cash settlements in exchange for turning in the policies of the terminally ill are only a part of the way viaticals works, experts say.

For example, there is also a "high net worth lifetime settlement," where people with $250,000-plus in life insurance that they no longer need because it was part of a business partnership or other deal that is ending, can sell it to another insurance company for cash.

The charge for the seminar is $25 for Hawaii Association of Life Underwriters members, including breakfast, or $40 for nonmembers who must pay another $12 if they want breakfast.

For more information call Shirley Wong at 536-4996, extension 208.