The life settlement industry consists of companies that specialize in purchasing life insurance policies from policyholders who no longer need them. If you’re looking for companies that buy existing life insurance policies, look no further.
We’re going to walk you through everything you need to know about who buys insurance policies, selling your life insurance policy, and what kind of companies buy existing life insurance policies.
Quick Read:
- Decide between life settlements for healthy seniors or viatical settlements for those with life-threatening illnesses.
- Choose a reputable company for a smooth selling process and maximum payout.
- Selling your policy can be straightforward with the right partner, guaranteeing a stress-free experience.
- Reach out to reputable providers to explore your options and secure a settlement that meets your needs.
Can A Company Buy My Life Insurance Policy?
Yes! Because your life insurance policy is considered an asset that you own, you have the option to sell it.
There are two main ways of selling your life insurance policy: life settlements and viatical settlements.
With both life settlements and viatical settlements, you sell your existing life insurance policy to a third-party buyer in exchange for a lump sum cash payment. The buyer then takes over the responsibility of paying the premiums on the policy. In return, they become entitled to the policy’s death benefit and you receive a lump-sum cash payout
While the process of selling your life insurance through a life or viatical settlement is largely the same, there are also some key differences.
Take a look at the information below to learn more about the differences and similarities between selling your life insurance through a life settlement and selling it through a viatical settlement.
Life Settlements
- For healthy seniors, age 75 or older, looking to cash out on their life insurance policies
- Eligibility requirements include: policy age, policy minimum, etc.
- Payout is typically more than the cash surrender value of the policy, but less than the life insurance proceeds.
- The exact figures will depend on the buyer.
- Life settlements are considered income, and therefore, are taxable.
Viatical Settlements
- Designed specifically for policyholders who have any of the following, and are looking to cash out on their life insurance policies now:
- Life-threatening illness
- Reduced life expectancy
- Chronic health issues
- There are certain additional eligibility requirements, including: the policy must be $150,0000 or more and be at least two years old.
- Payout can range from 50-70% of the policy’s face value.
- Viatical settlements are tax-free
Types Of Companies That Buy Life Insurance Policies
Who buys life insurance policies? The two main types of companies that purchase life insurance policies are a life settlement company and viatical settlement companies.
Life & Viatical Settlement Brokers
A life settlement broker acts as a kind of middle-man when it comes to the process of selling your life insurance policy, either through a life or viatical settlement.
More specifically, you are basically hiring the broker to market your life insurance policy to the provider or company who will decide whether or not to purchase it.
The downside of going with a broker when selling your life insurance is that all brokers charge certain fees and commissions for their services—and those fees inevitably end up coming out of your settlement money, meaning less money for you.
Viatical Settlement Providers
When considering viatical settlements, working directly with companies like American Life Fund offers distinct advantages over brokers. Here’s why:
No Brokerage Fees: Unlike brokers who act as intermediaries, companies like American Life Fund work directly with policy owners. This means you won’t have to worry about paying hefty brokerage fees or commissions, allowing you to keep more of your money.
American Life Fund Benefits:
- Offers the highest payouts in the industry, maximizing returns for policyholders.
- Streamlined and efficient sale process, ensuring quick access to funds when needed most.
- Exceptional customer service and support, guiding clients through every step of the process with care and expertise.
At American Life Fund, we prioritize your needs and tailor our services to ensure a stress-free experience. By working directly with us, you can trust that you’ll receive the best quality offer for your policy without unnecessary fees or complications.
Licensing Requirements For Companies Buying Life Insurance Policies
In order for a provider or company to buy life insurance, they must be certified as a licensed insurance professional for a minimum of 1 year. Some states also require certain training courses be taken as well.
Will I Qualify to Sell my Policy?
There are many different reasons a person may choose to sell their life insurance policy. Whether you have a financial emergency, need more money for retirement, don’t want to keep up the premiums, or simply just want cash now, you may qualify to sell your life insurance policy through either a life settlement or viatical settlement.
Here at American Life Fund, we are committed to delivering high-quality service and providing fair, generous viatical settlement offers to clients like you.
We are a viatical settlement company that specializes in working with patients who have been diagnosed and are living with a serious illness, which means that we are experts when it comes to managing cases with care and compassion.
Because we believe you deserve cash now, we are committed to high offers with quick turnaround times.
If you’re interested in seeing if you qualify for a viatical settlement, fill out your quick free form and get in touch with us!
Qualifying For a Life Settlement
Life settlements are for otherwise healthy seniors, age 75 or older, who are looking to cash out on their life insurance policy early.
Depending on the state, the policyholder must have owned their current life insurance policy for 2 years, and it must have a face-value of at least $150,000.
Qualifying for a Viatical Settlement
As we mentioned earlier, in order to qualify for a viatical settlement, you must have been diagnosed with a life-threatening illness. Unlike with life settlements, there are no age requirements to qualify for a viatical settlement.
You’ll also need to have held your current life insurance policy for 2 or more years, and your policy will need to have a face-value minimum of $150,000. Almost all policy types are eligible to sell. Whether you have whole life, term life, universal, group, or joint life insurance, you could be eligible for a viatical settlement.
If you meet these criteria, there’s a good chance you may be able to cash in your life insurance policy for a generous viatical settlement.
Want to see if you qualify for a viatical settlement? Visit us at American Life Fund.
What Type of Company Should I Sell my Life Insurance Policy to?
Deciding between a life settlement and a viatical settlement hinges on your individual circumstances and eligibility criteria for each type of settlement.
Life Settlements:
- Ideal for healthy seniors aged 75 or older.
- Typically pursued by individuals looking to retire early or offload hefty policy premiums.
Viatical Settlements:
- Suited for individuals living with a life-threatening illness.
- Often chosen by those seeking financial support for medical expenses or end-of-life care.
Sell with American Life Fund: Whether you’re exploring life settlements or viatical settlements, American Life Fund offers tailored solutions to meet your needs. With our commitment to maximizing payouts and providing compassionate support, we guide you through the process seamlessly, ensuring you receive the best possible outcome for your situation.
The choice of whether to sell your life insurance to a life settlement or a viatical settlement company depends largely on whether or not you meet the criteria and eligibility requirements for that specific type of settlement.
Summary
When considering selling your life insurance policy, you have options. Life settlements and viatical settlements both offer options to trade your policy for a lump sum cash payout, depending on your health and circumstances. Life settlements are for healthy seniors aged 75 or older, while viatical settlements are designed for those facing life-threatening illnesses.
At American Life Fund, we understand the challenges you face. That’s why we stand by your side as a partner during this difficult time. Our commitment to you guarantees a stress-free experience and maximum returns on your policy. Contact us today to start the process today.
How Much Do You Get For Selling ATerm Life Insurance Policy?
If you elect to sell your term life insurance through a viatical settlement, you can expect to receive about 50-70% of the policy’s face-value. Viatical settlement calculators offer a quick and easy way to estimate the potential value of your life insurance policy in a viatical settlement.
Can I Cash Out my Term Life Insurance?
You cannot specifically “cash out” term life insurance, because it does not have a cash value—only permanent life insurance policies carry a cash value. However, with term life insurance you may still qualify to receive a cash payout through a viatical settlement, assuming you meet the other criteria for viaticals.
You can see if you qualify for a viatical settlement by filling out our quick form here.
Is it Legal to Sell Your Life Insurance Policy?
Yes, it is absolutely legal to sell your life insurance policy through a life settlement or a viatical settlement to life insurance settlement companies. The NAIC is the governing body of state insurance regulators and is widely recognized as the authoritative source on insurance regulation in the U.S. Find more information here: https://content.naic.org/sites/default/files/publications-consumer-life-settlement.pdf
How do I know if I qualify for a life settlement or viatical settlement?
Eligibility criteria vary between life settlement and viatical settlement companies. Generally, healthy seniors aged 75 or older qualify for life settlements, while individuals with life-threatening illnesses qualify for viatical settlements.
What happens to my life insurance policy after selling it through a settlement?
Once you sell your life insurance policy through a settlement, the policy is transferred to the purchasing company, and you no longer have any rights or obligations associated with it.
How long does the life settlement process take?
The timeline for the life settlement process can vary depending on factors such as the complexity of your policy and the company you choose to work with. Generally, it can take a few weeks to complete the process from start to finish.
Can I purchase a life insurance policy after selling one through a settlement?
Yes, you can purchase a new life insurance policy after selling one through a settlement if you meet the eligibility requirements set by the insurance company. However, it’s essential to consider your current health status and financial needs before purchasing a new policy.
What happens to the death benefit of my life insurance policy after selling it through a settlement?
The ownership of your life insurance policy is typically transferred to the purchasing company after selling it through a settlement. The purchasing company becomes the beneficiary of the policy and receives the death benefit upon your passing.
About American Life Fund
American Life Fund is a leading viatical settlement company helping individuals with life-threatening illnesses access immediate, tax-free cash from their life insurance policies. With a focus on compassion, transparency, and top payouts, we’ve helped thousands of clients regain financial control during life’s most challenging moments. Learn more at americanlifefund.com.
