Viatical Settlement New Jersey
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 unlock immediate funds when traditional options fall short. While many people know the basics, fewer realize that these settlements apply to a wide range of policy types, including group policies, term policies, universal life, whole life, and even some policies with outstanding loans, as long as they meet certain eligibility criteria.
In New Jersey, 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 New Jersey Work?
A viatical settlement in New Jersey turns the built-up value of your life insurance policies into immediate financial support through a clear, structured process. American Life Fund begins by reviewing your insurance policy details to determine what portion of your final payout can be accessed as cash right now.
After a short consultation, you complete a straightforward application and provide your medical records for review. The New Jersey Department of Banking and Insurance requires that you receive a written disclosure summary explaining how the settlement offer is calculated, the provisions of the viatical settlement contract, and what it means for your beneficiary. Your personal information stays protected throughout, with privacy rules that secure all data collected during the process.
Once you accept the agreement, ownership of your life insurance contract transfers, premium payments end, and you receive a large lump sum cash payment you can use for health care, living expenses, or any other benefits you choose.
Most transactions finish within weeks. New Jersey law gives every viator 15 days after receiving payment to return the money and cancel the contract if they change their mind, adding certainty as they move forward. The process is straightforward, timely, and focused on helping you access the value of your policy when it matters most.
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 New Jersey?
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 New Jersey
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 and premium payment amounts
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 Those in New Jersey
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 someone in New Jersey 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 New Jersey 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 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.
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
New Jersey Counties Eligible for Viatical Settlements
Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren.
Across New Jersey, residents are choosing a viatical settlement New Jersey arrangement to access the value built up in their life insurance policy. This option delivers cash at the point it can have the greatest effect, helping people throughout the state use their policy to support meaningful priorities while they still can.
Viatical Settlement Bergen County
Bergen County’s close proximity to New York City brings fast-paced careers and high household costs, which can intensify financial strain when health concerns arise. A viatical settlement can turn the value of a life insurance policy into cash that supports care, housing, or family priorities, giving Bergen residents more control during a demanding time.
Viatical Settlement Essex County
Essex County blends vibrant cities with long-standing neighborhoods where many families live close together. Choosing a viatical settlement New Jersey arrangement allows policyholders to access their life insurance policy benefits now, providing funds to manage expenses without waiting for a final payout years down the road.
Viatical Settlement Middlesex County
Middlesex County’s central location keeps life moving quickly, and major health needs can disrupt that rhythm overnight. A viatical settlement can convert years of premiums into immediate support, helping residents cover medical care, household costs, or personal goals without the weight of future payments.
Viatical Settlement Monmouth County
In Monmouth County, coastal living mixes with deep-rooted communities where families often share caregiving roles. A viatical settlement provides a way to unlock the built-up value of a life insurance policy, creating cash that can fund care or allow time together without worrying about maintaining ownership or ongoing premiums.
Viatical Settlement Camden County
Camden County carries the character of South Jersey while facing higher healthcare costs than many surrounding areas. Residents often use viatical settlements to turn their insurance policy into ready money, supporting treatment, daily living needs, or long-term plans while they still have the choice.
Viatical Settlement Morris County
Morris County balances suburban life with thriving local businesses and high living costs. A viatical settlement New Jersey option can transform the cash value of a life insurance policy into immediate resources, helping families manage expenses and protect the stability they’ve built.
Insights for Viatical Settlements in New Jersey
New Jersey has one of the oldest populations in the country, with about 17.4% of residents aged 65 or older as of 2023. This aging trend drives rising demand for long term care and consistent health care support, often stretching household budgets beyond what fixed incomes can cover.
The average cost of assisted living in New Jersey is about $7,380 per month, among the highest in the nation. In-home care averages $27 per hour statewide, reaching over $30 in North Jersey metro areas. Even limited part-time care can add thousands to monthly expenses.
At the same time, around 7% of working-age adults in New Jersey lack health insurance, leaving many families to step in and shoulder the costs. A viatical settlement New Jersey arrangement can unlock the value of a life insurance policy as cash, supporting not just your own care but also loved ones who want to help yet cannot afford full coverage.
These realities show why many residents across the state choose to access their life insurance benefits while they can make the greatest difference. A settlement provides a large lump sum cash payment that can fund medical care, daily living needs, or home modifications, helping families create stability and security without delay.
FAQ about Viatical Settlement in New Jersey
Can I use a group life insurance policy in a viatical settlement?
Yes. A group life insurance policy can qualify once you are separated or preparing to separate from the employer sponsoring it. The viatical settlement company will obtain documentation confirming your ownership rights before moving forward with a sale, ensuring the connection between you and the policy is fully clear.
How is a fair price decided for my life insurance policy?
Offers are based on several factors, including the cash value of your policy, your current health status, and the cost of ongoing premiums. The New Jersey Department of Banking and Insurance oversees compliance with pricing rules, and our professionals present a clear breakdown so you can see how the viatical settlement company calculated the offer.
What if my policy has a loan secured against it?
If your life insurance policy has a loan secured against its cash value, the balance is usually deducted from your settlement amount. In many cases, the purchasing party pays off the loan as part of the transaction, and you receive the remaining money as your payment.
Can a viatical settlement support other financial goals beyond medical care?
Absolutely. Some New Jersey residents use their lump sum to pay off household expenses, invest in a small business, or help family members who are contributing to their care. Because it counts as another financing transaction, the policy payout can be directed anywhere it has the most benefit to your life.
Who regulates viatical settlements in New Jersey?
Viatical settlements are regulated by the New Jersey Department of Banking and Insurance, led by the state commissioner. This authority requires that every agreement meets strict compliance standards, including written disclosures and a 15-day rescission period, protecting public confidence in the process.
What happens to my policy after the sale is complete?
Once you commit to a settlement, ownership transfers to the purchasing party. They take over all future premium obligations, and you are no longer responsible for maintaining the contract. You keep the cash you received, regardless of how long you live after the sale.
Can I learn how much I might receive before committing?
Yes. You can request a free estimate from a viatical settlement company like American Life Fund without any obligation to enter a contract. This lets you review the terms and see what your life insurance policy could be worth before deciding to commit.
Get a personalized Viatical Settlement estimate.
We will get you the best possible offer for your policy.
Qualify Now 
(877) 261-0632