Viatical Settlement Illinois
Get Your Free Estimate!
Call us today at 877-261-0632
What is a Viatical Settlement?
A viatical settlement is more than just selling a life insurance policy, it’s a financial transaction that can unlock immediate funds when traditional options fall short. While many people know the basics, fewer realize that these settlements can apply to a wide range of policy types, including group policies, universal life, and even some policies with outstanding loans, as long as they meet certain eligibility criteria.
In Illinois, viatical settlements are often structured to deliver up to 70% of the policy’s face value in cash, depending on the policy’s terms and the insured’s health profile. The payment you receive is typically free from federal income tax if you are deemed seriously ill, and the money can be used without restrictions: from advanced medical care and home modifications to travel or family experiences. Once the transaction is complete, the viatical settlement company takes over all premium payments, and you no longer have to maintain the policy yourself.
How Does a Viatical Settlement in Illinois Work?
In Illinois, the viatical settlement process starts with a direct conversation between you and a licensed viatical settlement company like American Life Fund. Our team understands the unique needs of Illinois policyholders, from rising healthcare costs to the wide range of life insurance policies carried across the state.
After a brief consultation, you complete a simple application so our specialists can review your medical records and life insurance policy details. Every policy is evaluated individually, taking into account the face value, policy type, and your specific circumstances. Once an offer is agreed upon, the sale is finalized through a straightforward viatical settlement contract that transfers ownership to our company. We take over all future premium payments, you receive your lump-sum compensation, and the process, often completed in just a few weeks, frees you from the burden of maintaining the policy while giving you immediate access to funds you can use however you choose. Illinois law also provides you with a short period to change your mind after receiving payment, offering an added layer of protection as you move forward.
It really is that simple!
Want a free estimate for your policy?
Use our free calculator to see if you qualify and get an estimate of your policy’s worth.
Who Is Eligible To Get A Viatical Settlement in Illinois?
Insured’s Health
To qualify for a viatical settlement, the insured must be diagnosed with a life-threatening illness such as cancer or ALS.
Policy Type
All life insurance policy types are accepted. Whether you have whole life, term life, universal, group, or joint life insurance, you could be eligible for a viatical settlement. However, if the policy is issued through an employer, the insured must be separated from the employer or nearing separation from their employer in order to sell their policy.
The Age Of The Life Insurance Policy
The life insurance policy must have been in place for at least two years.
The Value Of The Life Insurance Policy
The life insurance policy must have a death benefit of at least $100,000.
What are the Benefits of a Viatical Settlement in Illinois
There are many benefits of entering into a viatical settlement. However, the two most common reasons people do it are for the money and to ease the burden on their loved ones.
Some other benefits include:
- No medical exams are required
- You can use the money however you want
- It’s a speedy process
American Life Fund is one of the leading viatical settlement companies serving the citizens of the USA. We have helped many people through this difficult time in their lives.
How are Viatical Settlement Payments Calculated?
The payout you receive from a viatical settlement is based on several factors, including but not limited to:
- The death benefit of your life insurance policy
- Your health condition
- The type of life insurance policy you have
These are just a few of the factors that will affect your payout. For an accurate and free quote, call us at 877-261-0632, and one of our expert representatives will be more than happy to help you.many people through this difficult time in their lives.
The Pros And Cons Of A Viatical Settlement for Illinois Residents
Not sure if a viatical settlement is the right move for you or your loved one? Here are some points to think about when weighing your options.
Pros:
- Receive a one-time payout that is typically much higher than the cash surrender value of your life insurance policy.
- Use the funds to cover medical expenses such as health insurance premiums, treatments, or long-term care.
- Have the flexibility to spend the money on better care, travel, or anything that improves your quality of life.
- Eliminate future life insurance premium payments, as the viatical settlement company takes over ownership and related costs.
Cons:
- Receiving a large payout could affect eligibility for need-based programs like Medicaid, which factor in income and assets.
- Once your policy is sold, beneficiaries will no longer receive the final payout unless you set aside a portion of your payout for them.
Why Clients Choose Us: At American Life Fund, we believe honesty and transparency aren’t optional—they’re the foundation of how we work. By choosing a trusted, licensed provider, you can avoid the pitfalls of the industry and move forward with confidence.
Viatical Settlement Examples
This is typically what a viatical settlement payout for an Illinoisan might look like:
- A life insurance policy with a $500,000 face value policy could yield a payout of around $300,000–$350,000, depending on health status and policy details.
- A policy with a $250,000 face value policy might provide a payout of $150,000–$175,000.
- A policy valued at $100,000 could result in a payout of $120,000–$140,000.
In many cases, viatical settlements in Illinois can provide up to 70% of the policy’s face value, offering immediate access to funds that can be used for medical expenses, living costs, or other personal needs.
Viatical Settlement vs Life Settlement
A viatical settlement allows someone diagnosed with a terminal or life-threatening illness to sell their life insurance policy to a life settlement provider or financing entity for a lump sum, often up to 70% of the face value. These transactions are typically based on the insured’s health condition, policy type, and the policy’s cash value, and can be completed quickly to provide immediate funds for medical expenses, living costs, or other needs.
How do life settlements work?
- A life settlement is a transaction that occurs when an individual over 75 sells a life insurance policy to a settlement provider for cash, usually yielding considerably more than the policy’s surrender value.
- The size of a life settlement payout is mostly determined by the policyholder’s health status and the premium payments of the policy. The money from selling life insurance policies can be used to finance long-term care, medical procedures, travel, or family events.
- Many people are unaware they can sell their life insurance policy for cash. When a policy becomes too expensive or unnecessary, the owner typically lets it lapse without knowing there is another option—the life settlement market.
Alternatives To Viatical Settlements
Not sure if a viatical settlement is right for you? Here are some other options to consider
Withdrawals
You can withdraw from the cash value of your life insurance policy, but this will reduce the death benefit paid to your beneficiaries.
Surrendering the policy
You can cancel your life insurance policy and receive the cash surrender value. This is usually a bad idea because you will get less money than if you had sold the policy in a viatical settlement.
Although viatical settlements offer many benefits, they aren’t the only form of financial assistance available. Be sure to speak with a professional before making any decisions.
Is a Viatical Settlement Right For You?
With life insurance policies increasing daily, it’s important to consider all options before deciding. For those with a chronic or terminal illness – selling your policies may be one way to afford quality care while still securing a financial cushion that will help you improve your quality of life.
If you or a loved one is facing a life-threatening illness and needs a Viatical Settlement, please call us at 877-261-0632 to see how we can help.
We’ve Helped Thousands of
People Just Like You.
“You never know how stressful a cancer diagnosis is until you experience it yourself. American Life Fund relieved my financial worries so I’m able to focus on my journey to recovery!”
Andrea, Arizona
“Once I received the first bill for treatments, I knew that I had to come up with a financial plan. I found American Life Fund and instantly felt reassured that I was in good hands. They were able to provide me with the money I needed and literally saved me from bankruptcy. I am now able to enjoy my time with what means the most to me, my family.”
Dan, Alabama
“When my husband was diagnosed with cancer and our retirement ran out, we needed a plan B and fast. American Life Fund provided the financial help we needed exactly when we needed it.”
Charlene, Wisconsin
Illinois Counties Eligible for Viatical Settlements
Adams, Alexander, Bond, Boone, Brown, Bureau, Calhoun, Carroll, Cass, Champaign, Christian, Clark, Clay, Clinton, Coles, Cook, Crawford, Cumberland, DeKalb, DeWitt, Douglas, DuPage, Edgar, Edwards, Effingham, Fayette, Ford, Franklin, Fulton, Gallatin, Greene, Grundy, Hamilton, Hancock, Hardin, Henderson, Henry, Iroquois, Jackson, Jasper, Jefferson, Jersey, Jo Daviess, Johnson, Kane, Kankakee, Kendall, Knox, LaSalle, Lake, Lawrence, Lee, Livingston, Logan, Macon, Macoupin, Madison, Marion, Marshall, Mason, Massac, McDonough, McHenry, McLean, Menard, Mercer, Monroe, Montgomery, Morgan, Moultrie, Ogle, Peoria, Perry, Piatt, Pike, Pope, Pulaski, Putnam, Randolph, Richland, Rock Island, St. Clair, Saline, Sangamon, Schuyler, Scott, Shelby, Stark, Stephenson, Tazewell, Union, Vermilion, Wabash, Warren, Washington, Wayne, White, Whiteside, Will, Williamson, and Winnebago. Whether you reside in the busy urban centers of Cook and DuPage Counties or in the rural stretches of Pope and Hardin Counties, viatical settlements offer a way to access much-needed funds from your life insurance policy during difficult times.
Viatical Settlement Cook County (home of Chicago)
At American Life Fund, we recognize the unique challenges that come with managing a life-threatening illness in a large and diverse county like Cook. From the fast-paced city of Chicago to the surrounding suburban communities, our team is here to provide compassionate guidance. We make sure you fully understand your options so you can make informed financial decisions for your future.
Viatical Settlement DuPage County
For residents of DuPage County, dealing with a serious illness can be overwhelming. A viatical settlement can help ease the financial strain. Our experienced team works with you every step of the way, simplifying the process and ensuring you have the support you need to focus on your health and loved ones.
Viatical Settlement Lake County
In Lake County, facing a life-threatening illness is never easy. At American Life Fund, we specialize in helping residents find financial relief through viatical settlements. Our team will guide you with care, making sure you understand the process and can make the best choices for your financial well-being in one of Illinois’ most vibrant regions.
Viatical Settlement Will County
Residents of Will County can find peace of mind knowing that viatical settlements may provide financial relief during challenging times. Our compassionate professionals help you understand your settlement options clearly, so you can make decisions that best serve you and your family in this growing and diverse community.
Viatical Settlement Sangamon County
In Sangamon County, families facing serious health concerns often need financial solutions quickly. At American Life Fund, we are committed to walking you through the viatical settlement process with clarity and care. We aim to help you secure financial stability so you can focus on what matters most, while remaining close to the resources and services of the state capital.
Viatical Settlement Madison County
For residents of Madison County, a life-threatening illness often comes with unique financial pressures, especially being part of the greater St. Louis region. Our dedicated team is here to help you understand the benefits of a viatical settlement, giving you the financial flexibility to manage expenses and protect your peace of mind.
Insights for Viatical Settlements in Illinois
Illinois is home to approximately 12.7 million people, with about 17.6% of residents aged 65 and older, a rate slightly above the national average. This growing senior population often faces rising demands for healthcare and long-term support.
Nearly 8% of Illinois residents under 65 lack health insurance, placing them at greater risk of unexpected medical expenses. At the same time, more than half the population, over 6.7 million people, live with chronic conditions such as cancer, heart disease, or Alzheimer’s, leading to substantial financial burdens.
Care costs in Illinois can be significant. The median monthly cost for assisted living is around $5,255, and in-home care can range from $20.95 per hour, equating to potentially thousands per week in some areas.
These figures illustrate the widespread financial strain many Illinois residents face, especially older adults managing serious health conditions and underscore the need for flexible funding options.
A viatical settlement can offer an impactful financial resource by converting your life insurance policy into a lump-sum payment. This type of arrangement allows individuals to cover immediate costs from ongoing care to home adaptations to personal support without waiting, providing real relief amid rising living and healthcare pressures in Illinois.
FAQ about Viatical Settlement in Illinois
Can I use a viatical settlement to pay off a mortgage or loan?
Yes. Many Illinois policyholders use the compensation from a viatical settlement to pay off a mortgage, clear personal debt, or cover large expenses. Once the settlement process is complete, the funds are yours to use however you choose, whether that’s paying for care, traveling, or making home improvements.
Can I sell more than one life insurance policy?
Yes. If you own more than one life insurance policy, you may be able to complete multiple viatical settlement transactions. Each policy is reviewed individually, and your settlement provider will walk you through the requirements for each one.
What happens if I outlive my original life expectancy?
If you live longer than expected, the purchaser of your policy continues to pay the premiums. As the former owner, you keep all of the compensation you received up front, there is no obligation to return any money.
Does Illinois allow partial viatical settlements?
In some cases, yes. Partial settlements may be possible, allowing you to sell part of your life insurance policy while keeping a portion in place for beneficiaries. Your settlement provider will explain the available options and whether your policy qualifies.
How quickly can a viatical settlement be completed in Illinois?
Most viatical settlements in Illinois are completed within two to four weeks, depending on how quickly medical records and policy information can be collected. Illinois law also provides a short rescission period after you receive your funds, which allows you to change your mind if needed.
Are there differences for group policyholders in Illinois?
Yes. If your life insurance policy is tied to your employer (a group policy), you may need to separate from that employer before completing a sale. Your provider will explain the specific steps, help you collect the right documents, and ensure that the transfer of ownership is handled correctly under Illinois regulations.
Can I still qualify if my policy has an outstanding loan?
Often, yes. The viatical settlement company will review the policy’s cash value, outstanding loan, and other provisions in the life settlement contract. In many cases, the purchaser pays off the loan balance as part of the transaction, and you receive the remaining compensation.
How does a viatical settlement compare to a life settlement in Illinois?
Both involve selling your life insurance policy in the secondary market, but a viatical settlement is specifically for individuals facing a terminal or chronic illness. Life settlements, on the other hand, are generally for seniors who no longer need or want their coverage. Because of the shorter life expectancy in viatical cases, payouts are typically higher than in life settlements. Illinois regulates both types of transactions, but the eligibility requirements differ depending on your health and age.
Get a personalized Viatical Settlement estimate.
We will get you the best possible offer for your policy.
Qualify Now 
(877) 261-0632