Viatical Settlement: Turn Your Life Insurance Into Immediate Cash When You Need It Most

The Viatical Settlement Process

Most applicants complete the entire viatical settlement process, from paperwork to payout, in just a few weeks. Knowing that upfront makes action easier:

1. Deciding on a Company: Many individuals find that working with a reputable viatical settlement company helps simplify the process and ensures they receive the best possible value for their policy.
2. Submitting Documentation: Prepare and submit essential documents like medical records and personal data for assessment. Oftentimes, if you don’t have this information upfront, the company can request this information on your behalf.
3. Reviewing Your Policy and Health Information: Once your documents are submitted, we take a closer look at your policy details and medical history to prepare a personalized offer. This step helps us ensure the amount offered reflects the real value of your policy.
4. Receiving an Offer: Based on the evaluation, the company issues an offer. Individuals often receive an offer that provides the financial support needed, allowing them to focus on their health and well-being.
   Read more about our viatical calculator.
5. Closing the Settlement: The policyholder accepts the offer, signs closing documents, and the policy ownership is transferred. Once the offer is accepted, signing the closing documents and transferring policy ownership are handled efficiently.
6. Obtaining Funds: The life insurance policyholder receives the large lump sum payment, usually within three business days of the process being finalized. Receiving the funds quickly, allows for immediate financial relief, helping to cover medical expenses and other urgent needs.

Application and Documentation

Prepare for the application by gathering any essential documents you have on hand or that are easily accessible such as medical records and policy information. These are crucial for us to assess eligibility and determine an appropriate offer. However, if you don’t have these documents on hand, we can easily order them on your behalf for review.

Once the documentation is received, we will assess the application and keep you updated every step of the way. 

Evaluation and Offer

During the evaluation and offer phase, we consider:

• Life Expectancy: Estimated based on medical information and prognosis. 
• Policy Value: The face value of the policy. 
• Premium Payments: Required ongoing premiums.

These factors guarantee a fair offer is made to the policyholder.

Closing and Payment

Once the policyholder accepts the offer, the closing process begins. This involves:

• Analyzing and signing closing documents. 
• Transferring policy ownership.
• Receiving a lump sum payment.

The contract, a legal document, outlines terms such as payment details and cancellation rights. This payout removes financial pressure fast, giving patients control over how they receive care, where they live, and how they spend their time.

Eligibility Criteria for Viatical Settlements

Certain restrictions govern the eligibility for viatical settlements. To qualify, an individual must have a serious illness. Additionally, viatical settlement companies generally require the policy to have a face-value amount of $200,000 or more. Specific health conditions that may qualify a person for a viatical settlement include cancer, ALS, Alzheimer’s, dementia, COPD, and advanced heart or kidney disease.

Our guide on viatical settlement eligibility will help with any doubts or alternatively, simply see if you qualify now!

Health Status and Life Expectancy

Health status and life expectancy determine eligibility for a viatical settlement although American Life Fund do not put any strict boundaries on time scales and diagnoses. 

Your medical condition, diagnosis, and treatment history are required for the application process.

Some examples of diseases that qualify a policyholder for a viatical settlement include:

• Cancer
• ALS
• Alzheimer’s
• Dementia
• COPD
• Advanced Heart or Kidney Disease

Life Insurance Policy Age and Value

In addition to health status and life expectancy, the policy’s age and value are necessary in determining eligibility for a viatical settlement. A Viatical settlement broker typically requires a minimum policy age of two years and a minimum policy value usually starting at $200,000.

Viatical settlement offers can be up to 70% of the policy’s value. By meeting policy age and value requirements, policyholders access the financial benefits of a viatical settlement during challenging times.

What Sellers Should Know Before Moving Forward

A viatical settlement offers more than just money — it provides freedom from financial strain, control over medical choices, and peace of mind. For many policyholders, choosing this option removes a burden they can no longer afford to carry. Still, it’s important to understand what the decision involves and how it may affect future plans.

You are choosing cash over coverage.

Once a viatical settlement is complete, your life insurance policy transfers to the buyer. You’ll no longer be insured under that policy. This matters only if you were still planning to use the policy’s death benefit for someone else. For most sellers, the immediate cash provides more value than a benefit that pays out later — especially when current needs are urgent.

You’re making a decision based on now, not the unknown.

Your health may change. Your situation may shift. But the decision to sell your policy reflects your priorities today — control, access, and the ability to act on your terms. That clarity helps many people move forward with confidence, knowing they’ve made a choice that supports their care, comfort, and family when it matters most.