Many people turn to viatical settlement, or the sale of a life insurance policy for immediate funds, for various reasons. Some want a settlement to cover medical bills. Others want to pay off their home, so they leave it to their spouse or children. Others need to replace a loss of income or use the settlement so their loved one can quit their job to care for them.

If you’ve decided to cash in your life insurance policy through a viatical settlement, your next step is to find a provider. A viatical settlement provider is a company that gives you a cash settlement in exchange for your life insurance policy.

There are a variety of companies that offer this service. To ensure you find the best viatical settlement provider for your needs, keep the following tips in mind.

Blog feature image with a person handing a check to another person and a caption that says viatical companiesWhat is a Viatical Settlement Provider?

A viatical settlement provider, or viatical provider, is a company that purchases life insurance policies from individuals who are chronically or terminally ill. The provider typically pays a percentage of the policy’s face value, enabling the policyholder to receive immediate funds that can be used for medical expenses, living costs, or any other needs.

The viatical settlement industry is regulated to protect policyholders, with 90% of U.S. states having laws governing viatical settlements, according to the National Association of Insurance Commissioners. Each viatical provider must comply with these regulations, ensuring fair and transparent transactions.

Holding hands with a viatial settlement provider

How do I Find a Reputable Viatical Settlement Provider?

Finding a reputable viatical settlement provider involves some research and due diligence. Here are some steps you can take:

Look For Experience With Your Condition

To qualify for a viatical settlement, you must meet certain health criteria. This process is typically easier if you work with a viatical settlement provider with experience with your health condition. Many viatical settlement providers work with people with cancer, but others also work with people with terminal illnesses related to heart failure, kidney disease, stroke, liver disease, Parkinson’s, or Alzheimer’s. To ensure you’re getting the best settlement for your situation, you may want to work with a provider with experience with your specific type of diagnosis.

a person viewing a vaitical contract from a viatical settlement provider

Use a Direct Provider

There are two options in viatical settlements: direct viatical providers and viatical settlement brokers. A viatical settlement broker helps you review multiple settlement offers from various companies to find the best offer, but they also tend to charge for this service. That can get expensive. If you work directly with a viatical service provider, you eliminate the “middleman.” You work directly with the company, ensuring you get accurate answers to your questions and that you don’t face any unnecessary brokerage fees.

Ensure They Work With Your Type of Insurance

Some viatical insurance providers may only work with certain life insurance policies. For example, one company may accept life policies through your employer, or group policies, while others may not. Choose a provider that accepts multiple policies to ensure you get the services you need.

terminally ill person talking with a viatical provider

Insist on an Easy Application Process

As you look at different viatical settlement providers, take some time to learn about their application process. To make the process as easy as possible, you want to be able to print out the application materials and fill them out at your convenience. You don’t have the time to stand in line in an office and wait for physical copies of the application. You also want relatively short forms and the ability to submit them using various options, including fax, email, PDF files, and mail.

To ensure you get through the process quickly, take time to gather your insurance documents and medical records when you fill out the forms. Sometimes, those missing details are what hold up the viatical process.

Find The Best Quote For Your Settlement

When you find an easy application process, you may want to get multiple quotes. Getting multiple offers will give you the ability to compare the offers to see which one is the best for your needs. Remember, this is a competitive industry, and these companies need your business just as much as you need their services. To ensure you get the right fit for your needs, you may want to look for the viatical settlement provider who offers you the best quote on your settlement.

chronically ill person receiving a check after getting a viatical settlement from a viatical provider.

Choose a Viatical Settlement Provider With Good Reviews

In addition to comparing quotes, see what other customers say about the viatical company. If you’re considering a viatical settlement, that can be a stressful and emotional time in your life. You deserve a company that can help you get through the process in a simple, hassle-free, and friendly way.

You get a sense of what the provider offers when you read their customer reviews online or on the viatical settlement provider’s website. To protect your emotional well-being (and your finances), you should only choose a company with positive reviews from previous clients.

Make Sure You Can Keep Some of Your Policy

Many people don’t know that you can keep a portion of your policy intact for your original beneficiary or whoever else you choose. This is one option individuals take when they need policy funds now but would also like to keep part of the policy intact for later, giving them the best of both worlds. But not all viatical settlement providers may offer this option. Make sure the provider you work with allows you to keep a portion of your policy in place.

At American Life Fund, we have a long history of making clients and their families happy. We offer a fast and easy application process as well as competitive quotes.

To learn more about viatical settlements or about why you should choose American Life Fund to be your viatical settlement provider, contact us today. We look forward to helping you gain the financial freedom you deserve.

What is The Process of Selling my Life Insurance Policy to a Viatical Settlement Provider?

Selling your life insurance policy to a viatical settlement provider involves a few key steps. First, you’ll contact a viatical settlement provider or hire a broker to find a suitable buyer.

Next, the buyer will offer you a lump sum. This amount is more than the cash surrender value of your policy but less than its death benefit. If you accept the offer, the buyer, usually the viatical settlement provider, takes over ownership of your policy. They’ll pay the future premiums and eventually collect the death benefit.

Remember, regulations require that you’ve owned your policy for at least two years, and it typically needs to exceed $100,000 in face value to be eligible for a viatical settlement.

About the Author: Lacey

Lacey is a compassionate and dedicated marketing director at American Life Fund, a leading life and viatical settlement company. Lacey has made it her mission to help patients with life-threatening illnesses and their families get the financial support they need during difficult times.

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