How to Find the Best Viatical Settlement for Your Needs

Knowing when to sell your life insurance policy isn’t as easy as it might sound. Whether you’re diagnosed with a chronic illness, or you’re hoping a life settlement can ease your financial strain, choosing to sell a life insurance policy is a major decision. If you need a quick payout or help covering premiums, you may want to consider selling your life insurance policy. This is what’s known as a viatical settlement or a life settlement.

A viatical settlement is the sale of your life insurance policy. As the policyholder, you’ll sell your life insurance policy, either through a life settlement company or with the aid of your insurance company broker. This entitles you to a quick cash value, also known as the cash surrender value. You may sell your life insurance policy through a broker or third-party buyer for numerous reasons in the life settlement industry.

Why do people pursue life settlements?

In many cases, a policyholder needs the payout’s quick cash value to help you cover your medical expenses. This is particularly true if the policyholder is an ill patient or someone otherwise diagnosed with a terminal illness. An individual’s life expectancy isn’t the only deciding factor, though life expectancy is larger. One typical viatical settlement case involves ongoing expenses. You may still have premium payments to cover or ongoing costs through your insurance company. Since your fiduciary duty is to protect these, your life insurance’s cash surrender value can help you handle the expenses.

Also, most people buy life insurance to provide for their loved ones. If you don’t have any immediate family or beneficiaries, it may help sell your life insurance. There are plenty of different sellers, and their viatical settlement needs will vary based on their personal information. This is the case for many seniors. Often, seniors don’t always have family members or a living beneficiary of the policy. Without a beneficiary, you may be paying high premiums that you don’t need to. As a life insurance policyholder, there are several circumstances in which it’s in your best interest to conduct a life settlement transaction with a viatical settlement provider.

Be it a chronic illness, a need for your policy’s cash surrender value, or the best offer and a lump sum for an unnecessary life insurance policy, the policy owner needs to understand the specifics of the life settlement process. Here are some key components of how a viatical settlement transaction works as a seller and policy owner.

How do the top viatical settlements work?

A viatical settlement is a fairly straightforward process. You, the seller, have to decide that selling your insurance policy is in your best interest. The life insurance policyholder then meets with a viatical settlement broker to discuss policy transfers, the face value of the purchase, and how to navigate the sale with a life insurance company. The viatical settlement broker or viatical settlement company will then try to find a qualified buyer, often on the secondary market or through a third party.

A buyer or life settlement broker will buy your life insurance policy, pay any future premiums attached, and collect the death benefit when the policyholder dies. Depending on how much money is noted in the policy’s death benefit, some individuals will invest in the life settlement market. Often, a viatical settlement transaction or purchase more than covers the policy’s premiums if you go by the industry average. Even with surrender charges and cover any policy lapse fees, your policy’s cash surrender value may attract a cash payment sale.

A viatical settlement is the best choice for many individuals depending on some of the aforementioned key factors. If you have a financial planner or accountant, you may want to discuss life settlement payouts with them. A financial planner may ask about the amount of time you’ve taken to consider a viatical settlement or offer you a viatical settlement questionnaire to see if it’s the right choice for you. An advisor will do their due diligence to remain cognizant of the insured’s life expectancy, the amount of the death benefit, and how to conduct a life settlement. After all, it’s a lot of paperwork

Where can you find the top viatical settlement provider?

Your success often hinges on working with the right viatical settlement provider. After all, regardless of your health status, a life settlement tells you part of the value of your whole life. That’s why it’s important to find a viatical settlement provider who puts you first. To start, look for a top settlement provider that has a license. Without a license, you may as well sell to the first person you meet. A financial advisor can often help you find licensed providers. Your financial advisor may even be able to help with the sale.

Also, look for a life settlement provider that has years of experience in the industry. You want a life settlement provider with a proven track record of getting quality results. In a good case, the right life settlement provider can even get buyers and institutional investors to bid on the whole life policy. This helps the life settlement process proceed in favor of the seller. A viatical settlement company should also be reasonable about the commission. If you’re working with a viatical settlement company that wants to take too large of a commission, that might be a red flag.

Going through the life settlement process is difficult for any policy owner. That’s why it’s so important that you don’t go through the life settlement process alone. Having the right broker on your side during the life settlement process can make a major difference. For seniors, those with complicated medical records, or anything in between, a broker can help you get the payout you need. Outside of that payout, the right broker will treat you with compassion and help you through this difficult time. Your financial needs come first, and American Life Fund is here to help.

Getting that diagnosis of a chronic or terminal illness can be a devastating blow. Fighting off a disease like cancer, heart disease, ALS, Alzheimer’s, or others can be a long, difficult journey. Not only will this weigh on your mental and physical health, but intense medical treatments can be incredibly expensive. You shouldn’t have to worry about your financial health while you’re fighting for your life. So what is the best course of action?

You could go to a financial institution and ask for a loan but that can be a complicated process and you’ll end up owing more down the line. You could try to pick up some extra work, which could also be difficult to do with your health deteriorating. Even meeting with a financial planner may be too late to do any good. What if there was a way to get cash value and a premium payment for an asset you already have, like your life insurance policy? Well, that is exactly the purpose of a viatical settlement. This could be the answer to financing your chronic illness.

What are Viatical Settlements?

If you’ve never heard of viatical settlement contracts before, you aren’t alone. This process is a best-kept secret that has helped many individuals get a lump sum of cash from the sale of a life insurance policy. Viatical settlements are defined as a financial transaction where your life insurance policy is bought from your insurance company by a third party, usually the viatical settlement broker. These brokers shop around for the best price so they can offer you, the policy owner, the best deal for your life insurance.

Think of this as an accelerated death benefit where you receive slightly less of the cash value. If you want to buy back your life insurance policy under normal circumstances, you would lose a lot of money by settling for the cash surrender value. Instead, when a viatical broker purchases your policy, they will sell it to you for a lump sum that is still less than your whole death benefit or face value but much more than the surrender value. This is a great option when you need the money more immediately than your own life expectancy. It can help you pay for medical expenses, afford your current lifestyle, and give you peace of mind while you go through your diagnosis.

Get money in a timely manner.

The biggest benefit of viatical settlements is how quickly you receive your money. Rather than your family waiting to receive your death benefit, you can use the cash value now for more immediate expenses. A lump sum cash payout, even if it is slightly less than the face value of your insurance policy, will help you afford the treatments you need and keep everything running smoothly at home.

Getting your viatical settlement is an incredibly fast and straightforward experience. You simply apply and find out if you qualify almost instantly. From there, you fill out your application which is swiftly reviewed. Once everything is confirmed you can accept the funds and use them at your discretion. Viatical settlement companies understand that you have a lot going on in light of your chronic illness diagnosis, so settlement providers are usually quick to help you secure the funding you need.

Qualifications for a viatical settlement payout.

Viatical settlements are a great option that has helped so many individuals across the country. However, you do have to meet a few qualifications before you can be approved for this viatical settlement transaction. To qualify, you must have an existing life insurance policy and a chronic illness which is defined as a condition that affects your everyday life. That’s it! Pretty simple! There are specifications that will affect your lump sum cash payout such as your diagnosis, how advanced it is, the policy’s face value, and other information about your insurance company.

Use your funds freely.

Oftentimes when you sign on the dotted line of this kind of written agreement, there are all kinds of restrictions and rules about how you can spend your money. Well, with viatical settlements, that is not the case. Once you receive your payout, you are free to use it however you see fit, no strings attached. You can use the money for your medical fees and experimental treatments. You can use it to help pay your bills while you are out of work. Or you can use the money to go on that trip you’ve always wanted to. Once it leaves the hands of the viatical settlement company, they no longer have any claim on how you use your funds. So enjoy the freedom and take advantage of this opportunity.

The process is completely legal and reliable.

Sometimes when a process is too good to be true, people start to doubt if it is legitimate. It is reasonable that you may have some questions about viatical settlements for this reason. Legal precedent has defined your life insurance policy as an asset or a piece of property. So as a policy owner, you have the right to sell your property or use it how you see fit. The use of viatical settlements is on the rise as more people understand the options they have on a legal basis. So if you are considering pursuing this option as a life insurance policyholder, don’t fear. It is completely legal and safe for you to sell your policy to a third party and get your cash value.

Don’t stress over money while dealing with a disease.

The truth is nobody plans for a chronic illness or a health-related complication in their life. Even if you do have savings, your health can completely throw things off and cause financial strain that you shouldn’t be worrying about. Viatical settlement brokers are here to help you. You deserve to live the rest of your life in peace without stressing about income or cash flow. Let a viatical settlement provider offer you that freedom and ease as you transition into this new phase of life.

If you’re in a difficult financial situation and need money fast, it’s likely that you’re researching different kinds of loans to try and find the best option. Using your life insurance policy may never come to mind, both because many people don’t know how to get money from it and because of its typical purpose.

You bought a life insurance policy to protect your dependent financially in the event of your death. You make monthly premium payments to ensure that your loved ones will receive the death benefit after you’re gone. You may find, however, that you either don’t need the policy later down the line or that you have a financial emergency. If you had a term policy, for example, and find that your plans have changed before the term was up, you may want to get some extra money out of the policy.

Life insurance policyholders have several options when it comes to cashing out their policies. They can surrender the policy outright, withdraw from the policy, or borrow against it. You may also be able to sell your policy through a life settlement or a viatical settlement. Here is a breakdown of all your options.

Surrendering the Policy

This is where you basically cancel your policy in exchange for the cash surrender value. This is the cash value of the policy with any applicable fees subtracted, such as from canceling a permanent policy. It’s important to note that, despite the fees, the permanent policies, such as a whole life insurance policy, will offer much more significant payouts. Term policies offer cheaper premium payments, but this is in exchange for fewer benefits.

Be careful of canceling a policy too early. Many permanent policies have a surrender period in which your life insurance company will keep part of your payout as a penalty for canceling early. Make sure to understand your surrender period before taking this option.

Withdrawing and Borrowing

Depending on your plan, you may be able to either make a withdrawal from it or borrow against it. You’ll need a permanent policy in order to withdraw from it, but you can make withdrawals from the policy up to the amount you’ve paid in premiums without having to pay income tax on the withdrawals. Your insurance company will subtract the amount from the death benefit that your beneficiaries receive after your passing.

It’s also possible to borrow against your policy, even if it’s a term insurance plan. There’s no credit check for these loans, so they can be easier than getting loans elsewhere. Just be aware that you’ll have to repay the loans with interest before your passing, or the amount will be subtracted from the policy’s death benefit.

Accelerated Death Benefits

Some policies may give the option for an accelerated death benefit (ADB). These are policies that allow policyholders to receive cash advances against the death benefit. These plans are often chosen by those with serious illnesses and low life expectancies. Even if an ADB isn’t mentioned in a policy’s contract, holders may still qualify if they’re diagnosed with illnesses expected to decrease their lifespans. While this can be a good option in some cases, such as when the policyholder can afford some of their medical expenses, it will be less lucrative than selling the policy.

Life Settlements

A life settlement is where a life insurance policyholder sells their policy to a third-party buyer in exchange for a one-time cash payout. The payment is generally more than the cash value for surrendering the policy but less than the actual death benefit. The third-party buyer then takes over the monthly premium payments in exchange for becoming the new beneficiary of the death benefit.

Life settlements came to be after the 1911 United States Supreme Court case of Grigsby v Russell. In this case, a man sold his life insurance policy to Dr. Grigsby as payment for a needed surgery. After he died, much later and not as a result of the surgery, his insurance company tried to argue against Grigsby taking over as the beneficiary of the death benefit. This case ruled that life insurance policies are personal property and may be sold as such, and thus the life settlement industry began.

Viatical Settlements

A viatical settlement is similar in concept to a life settlement but with a few key differences, such as how you qualify. A viatical settlement is typically offered by a viatical settlement provider that specializes in these kinds of sales. These may be private or public agencies and those interested may work with a viatical settlement broker to find the best deal from a settlement provider.

In order to qualify for a viatical settlement, the seller must be diagnosed with a terminal illness or chronic condition that has led to a low life expectancy. Generally speaking, this means a life expectancy of two to four years. They must also have a life insurance policy valued at $100,000 at least. Like with life settlements, a viatical settlement contract is a written agreement that establishes the viatical settlement provider as the new beneficiary of the death benefit in exchange for a lump-sum payment and agreement to take over the premiums.

Viatical settlements rose in popularity during the AIDS crisis of the 1980s where viatical settlement providers advertised almost exclusively to gay men living with HIV and AIDS. While some criticized this as a gruesome practice at the time, the money from these settlements enabled many of the men to afford treatments that significantly increased their life spans. Today, people seek viatical settlement transactions to pay for treatments, care, and other expenses that arise due to serious illnesses.

Viatical settlements provide a big advantage over other settlement options in that all the money from a viatical settlement is tax-free. Additionally, there are no limits whatsoever on how a seller can spend their settlement. While they’re often used to cover medical expenses, there’s nothing stopping a seller from spending the money on personal items they want to increase their quality of life.

Depending on the severity of your situation, there are plenty of ways to make money from your life insurance policy. Just be careful to pick the one that best fits you and your family.

There may come a time when you no longer need nor want your life insurance policy. While your life insurance was a financial safety net that protected your beneficiaries from financial ruin or struggles in the event of your passing, you may find that your plan no longer suits you since you no longer need it after your children have grown up, or you may find that your monthly premiums just aren’t as affordable as they used to be. Whatever the reason you’re thinking of giving up your insurance policy, there’s a good chance that you can do something better than just canceling it.

Different types of life insurance policies are good for different circumstances. For example, you may have chosen term life insurance if you only needed a policy up to a particular time, such as after the kids graduated college. You may have bought whole life insurance if you believed that you needed to be covered by an insurance company for your entire life. Whole policies generally charge additional premiums, and you may find that it just isn’t worth paying anymore. Whatever your reason to want out of your policy, you can likely sell it. Your two main options are a life settlement or a viatical settlement.

What is a life settlement?

A life settlement is an agreement where you sell your existing insurance policy to a third-party buyer for a one-time cash payment. After this sale, the buyer then takes over the responsibility of paying the premiums on the policy. In return, they become the new beneficiary of the policy’s death benefit and will collect it upon your passing. The payout for a life settlement is typically more than the cash surrender value of the policy but less than the death benefit. The exact figures will depend on your broker and the buyer.

One might choose to sell their life insurance policy if they have financial emergencies, need more money for retirement, or if they simply don’t want to keep up the premiums. The right to sell a life insurance policy as the personal property was established in the United States Supreme Court case Grigsby v Russell. In this situation, Russell sold his insurance policy for $100 to Dr. Grigsby as payment for necessary surgery. When it came time, much later, for Dr. Grigsby to collect on the death benefit, it was ruled that the sale of the insurance was valid. This event gave birth to the life settlement industry.

What is a viatical settlement?

A viatical settlement is similar to a life settlement but with a few key differences. The first, and most important of these, is how one qualifies for a viatical settlement. A viatical settlement contract is only available to a life insurance policyholder whose plan values $100,000 or greater and who has a terminal illness or life-threatening chronic illness. Typically, viatical settlement providers work with people with a life expectancy of two to four years.

The business of viatical settlements began in earnest during the AIDS epidemic of the 1980s. Brokers of viatical settlements advertised heavily to men living with HIV and AIDS at the time, presenting a viatical settlement as a better option than holding onto their life insurance policies. While critics considered this a gruesome and ghoulish practice at the time, the truth is that viatical settlement companies gave many of these men the opportunity to afford new treatments that significantly extended their lives.

If you qualify for a viatical settlement, you can work with a viatical settlement broker to fill out a brief application that details some basic personal information, your medical records, and your diagnosis and stage of illness. Typically, your application can be processed in just a few business days, and you’ll be able to come to a written agreement regarding how big of a lump sum cash payout you can expect.

What can viatical settlements be used for?

Arguably the best thing about viatical settlements is that they can be used for anything of your choosing—there are absolutely no limitations. The most common reason Viators seek them out is for financial assistance with medical costs including treatments, care, and quality of life benefits. Cancer patients viatical settlement providers to afford the best treatment and to obtain the peace of mind that their financial burdens are lessened.

Viatical settlement transactions are also fast and provide near-instant interest-free cash to ill patients in need. The money can be used to hire financial planners to see to the Viator’s end of life financial needs if the time comes. Ill people may also choose to use the money to obtain at-home care as an alternative to hospital care. They may even choose to use the money simply to improve their quality of life while they can still live independently. If a Viator wants to use the money to pursue an unforgettable vacation or to buy a new car, it’s their right to do so. They can even use the money to leave something for family members after their passing. Viators have total freedom with the money.

Are there other benefits?

A huge benefit of viatical settlements over life settlements or other cash-out options is that the money from a viatical settlement contract is all tax-free. In most cases where a policyholder sells their policy to a life settlement company, they have to pay income tax, or even estate tax, on the money. Viatical settlements are free from federal income tax and other fees, so Viators receive the full amount for their policy, regardless of the type.

A viatical settlement can be a great answer for terminally ill policyholders, but it’s always important to do as much preparation as possible before committing. A viatical settlement broker can help you contact various viatical settlement companies to help determine which one will offer you the best deal for your situation. It’s also a good idea to meet with a financial advisor to determine if any creditors may be able to claim part of your settlement. Once you’re sure you’re ready, you can use a viatical settlement to improve your situation in any way you want.

For many, providing help for your aging parents can be financially, logistically, and emotionally challenging. As your parents’ age, they may reach a point where they need extra help. The good thing is there are numerous resources available to assist you and your parents in the process as they enter this new chapter of their life. We have compiled a short list of tips to help make the process of caring for your loved one easier. From the basics of knowing what to say, to exploring uncommon financial avenues, such as a viatical settlement, to meet financial obligations that arise along the journey, we highlight noteworthy points of consideration to help assist you with a smoother process in caring for your aging loved one.

1. Sit Down and Discuss

It is important to have an honest, open discussion about issues that you are aware of and ones that might come up. Both parties must be frank about their expectations. It’s easier to execute a plan for the future when everyone is on the same page.

How independent do your parents imagine themselves being when they are in the later stages of life? Is that realistic? What are their thoughts on staying in an assisted living center versus at home with their children? What level of attention will they need for day to day activities? Taking time to discuss these issues can help you plan and budget for future expenses, as well as eliminate tension that may be caused by unrealistic expectations in care.

2. Listening

It is important to understand the physical and emotional needs of your parents and address them with dignity and respect. However, it is also imperative that you consider your own limitations and be honest about them. Time, finances, and space will need to be considered when developing a plan for your parents. Those limitations do not signal a lack of care on your part. Rather, it offers what your family can reasonably handle. Many experts recommend holding a family meeting with key family members to give all family member a voice to feel equally heard.

3. Viatical Solution

When planning for long-term care for your aging parent, finances will inevitably be a topic of discussion. As you work with your aging parent to help them eliminate unnecessary expenses, you may consider letting their life insurance policy lapse to eliminate the cost of premiums. However, a life insurance policy can actually serve as a means for attaining cash now through a viatical settlement. In a viatical settlement, an individual sells their existing life insurance policy to a third party for more than its surrender value but less than its net death benefit, for cash now. Your loved one’s existing life insurance policy may hold the key when it comes to receiving funds to pay off various expenses such as medical bills, future cancer treatments, living expenses, and medications.

4. Remember to be Flexible

Life is unpredictable, especially for caregivers. If your parent has a stroke or your dad develops late-stage cancer, you’re not going to say, “It’s 7 p.m. and I’m done for the day. Someone else can meet them at the hospital and make all the arrangements.” All the planning in the world cannot account for how or when your loved one’s needs will increase. So, fine-tuning your boundaries so that they mesh with the ever-evolving reality of your situation is crucial.

Building some flexibility into your schedule and the care plan is important, but where it really matters is being open to all sources of help. You must be willing and able to step away and let someone else take over from time to time.

The fact of the matter is that one person cannot possibly do it all.

American Life Fund Can Help

It’s important to understand that as your loved one’s needs increase, the importance of your own needs and those of your family does not diminish. This means exploring all avenues for financial assistance, reaching out to relatives for help, or seeking communities that can better meet the needs of your parents.

At American Life Fund, we help make life easier on individuals burdened financially through viatical settlements. To learn more about our services or to get a quote, contact us today.

The cost to treat cancer is so staggering in the United States that the National Institute of Health projects annual spending associated with cancer costs to be $158 billion by 2020. And for patients, as the cancer grows, so do the costs associated with treating it. Cancer treatment expenses increase exponentially as the disease progresses in patients. One solution to assist with these heavy expenses is to work with a viatical settlement company. They allow you to obtain immediate funds through the sale of your life insurance policy.

The Cost to Treat the Top Cancers

Cancer does not discriminate. Any person can get cancer in any area of their body. Below are the leading types of cancer and the National Cancer Institute’s projected cost of treatment for 2019-2020 for these cancer types.

• Lung cancer: $60,885 initial cost, $7,591 annual ongoing costs, and $95,318 for the last year of life
• Colorectal cancer: $51,812 initial cost, $4,595 annual ongoing costs, and $85,671 for the last year of life
• Bladder cancer: $20,960 initial cost, $4,677 annual ongoing costs, and $75,772 for the last year of life
• Melanoma: $5,437 initial cost, $1,951 annual ongoing costs, and $62,436 for the last year of life
• Breast cancer: $23,078 initial cost, $2,207 annual ongoing costs, and $62,856 for the last year of life
• Lung cancer: $60,553 initial cost, $8,130 annual ongoing costs, and $92,524 for the last year of life
• Uterine cancer: $26,775 initial cost, $1,535 annual ongoing costs, and $70,175 for the last year of life
• Thyroid cancer: $20,000 initial cost, $4,000 annual ongoing costs, and $60,000 for the last year of life

Living with cancer is not only emotionally and physically devastating, it can quickly drain a family’s finances as well. It is no surprise that people with cancer file for bankruptcy at two and one-half times the rate as people who do not have cancer. Working with a viatical settlement company like American Life Fund can provide you and your family the funds you need and save you from the financial stress that comes with a cancer diagnosis.

The Types of Expenses That Viaticals Cover

Viatical settlements cover a wide variety of expenses including:

• Current and future medical bills
• Alternative treatment costs not covered by insurance
• Day to day living expenses such as rent, mortgages, car payments, etc.
• A once in a lifetime vacation or trip with loved ones
• Allows you to pay off existing debts

What to Expect When You Work with a Viatical Settlement Company

The viatical settlement process is relatively simple. You provide initial information about your medical status and life insurance policy. Then, the company verifies this information and provides you with an offer for your policy. Once accepted, your receive funds in 1-2 weeks.

To get started, complete our simple form to find out immediately if you qualify. You can also call us toll-free at 877-421-0148 to find out if you qualify or to learn more about how the viatical process works.