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What is a Viatical Settlement?

Viatical settlements allow someone diagnosed with a life-threatening illness to sell their life insurance policy for cash. This person is known as the “viator.”

The third party they sell their policy to is an institutional investor, usually a viatical settlement company such as us here at American Life Fund.

A viatical settlement is a legally enforceable agreement between a life insurance policyholder with a severe illness (viator) and a viatical settlement business.

How Does a Viatical Settlement in South Carolina Work?

The process begins when the policyholder contacts a viatical settlement company like American Life Fund. After an initial consultation, the viator will apply.

Once the application is received, our underwriters will evaluate the case and verify all information provided by the viator.

If the case is approved, the viator will be asked to sign contracts issuing the viatical company as the new policy owner and beneficiary in exchange for the agreed-upon offer amount. Then we will issue a payment for the offer amount. It’s that simple! The entire process can take as little as two weeks from start to finish.

Viatical Settlement in Texas

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Who Is Eligible For A Viatical Settlement in South Carolina?

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 $150,000.

What are the Benefits of a Viatical Settlement in South Carolina?

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
  • You can choose the settlement company you want to work with

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.

Viatical Settlement in Texas

How are Viatical Settlement Payments Calculated?

Viatical Settlement in Texas

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 877-590-4088, and one of our expert representatives will be more than happy to help you.

The Pros And Cons Of A Viatical Settlement

Not sure if a viatical settlement is a right move for you or your loved one? Here are some things to keep in mind.

Pros:

  1. You’ll get a one-time payout much higher than the cash surrender value through a viatical.
  2. Help pay for medical expenses such as medical premiums, treatment, or long-term care.
  3. Use your money for better care, travel, or anything else to make you happier.
  4. With a viatical settlement, you can stop making premium payments. The new owner i.e. the viatical settlement company, will take over those responsibilities. They will also be in charge of any other maintenance costs.

Cons:

  1. Government assistance programs such as Medicaid are need-based programs based on your income and assets, so you may lose eligibility if your finances improve.
  2. Beneficiaries won’t be able to receive the death benefit from your life insurance policy  unless you choose to give them part of your viatical settlement payout.

Viatical Settlement Examples

Here are a few examples of how people have used their viatical settlement payouts:

  • John had a life insurance policy with a $500,000 death benefit. He was diagnosed with terminal cancer and decided to enter a viatical settlement. He received a payout of $300,000 and used the money to travel and spend time with his family members.
  • Mary had a life insurance policy with a $250,000 death benefit. She received $150,000 and used the money to pay for her medical expenses and treatments.
  • Mike had a life insurance policy with a $150,000 death benefit. He received $90,000 and used the money to pay off his debts.

As you can see, viatical settlements can be very beneficial for seriously ill people who need financial assistance.

Viatical Settlement vs Life Settlement

When looking into viaticals, you may hear the term “viatical life settlement” thrown around — but viatical settlements and life settlements are two separate transactions. A life settlement is similar to a viatical settlement, but the two have several key differences.

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.
Viatical Settlement in Texas

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 877-297-4592 to see how we can help.

Viatical Settlement South Carolina

In South Carolina, viatical settlements provide a helpful financial lifeline for individuals facing life-threatening illnesses. These settlements allow policyholders to sell their life insurance policies in exchange for a lump sum payment, which can be invaluable for covering medical expenses, paying off debts, or improving their quality of life.

The cost of treating life-threatening illnesses in South Carolina can be substantial. According to the South Carolina Department of Health and Environmental Control, the average annual cost of cancer treatment can range from $28,000 to $55,000, depending on the type and stage of cancer​​. Similarly, treatments for advanced heart disease can also exceed $45,000 per year​​.

Given these high costs, a viatical settlement can offer immediate financial relief. In South Carolina, individuals from various counties can benefit from this option, providing them with the financial support needed to manage the high costs associated with severe medical conditions.

South Carolina Counties Eligible for Viatical Settlements

Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Charleston, Cherokee, Chester, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Dorchester, Edgefield, Fairfield, Florence, Georgetown, Greenville, Greenwood, Hampton, Horry, Jasper, Kershaw, Lancaster, Laurens, Lee, Lexington, Marion, Marlboro, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Sumter, Union, Williamsburg, and York.

In Greenville County, including the city of Greenville, residents facing life-threatening illnesses can depend on viatical settlements as a viable option for stability. American Life Fund is dedicated to assisting Greenville residents by offering expert guidance through the viatical settlement process, helping you secure the necessary funds to cover healthcare expenses and maintain financial stability during these challenging times.

For residents of Richland County, including Columbia, viatical settlements offer pivotal financial support when dealing with severe health conditions. The average cost of advanced medical treatments in this area can exceed $45,000 per year, making it difficult for many to afford necessary care. American Life Fund is committed to helping individuals in Richland County with the viatical settlement process, making sure that you receive the economic help needed to alleviate the burden of high medical costs.

In Charleston County, home to the historic city of Charleston, viatical settlements can be a lifeline for those struggling with life-threatening illnesses. American Life Fund provides personalized assistance to Charleston residents, helping you work through the viatical settlement process and make informed decisions to manage your healthcare costs effectively.

Residents of Horry County, including Myrtle Beach, can benefit from viatical settlements when facing serious health issues. With the high cost of medical treatments, often exceeding $45,000 per year, many families find themselves in financial distress. American Life Fund is here to guide Horry County residents through the viatical settlement process, offering tailored support to help you address your financial needs and maintain your quality of life.

In Spartanburg County, including the city of Spartanburg, viatical settlements can provide useful financial relief for those dealing with life-threatening health conditions. At American Life Fund, we offer dedicated support to Spartanburg residents, helping you through the viatical settlement process to access the funds needed to cover medical expenses and reduce financial stress.

For residents of Lexington County, including Lexington and surrounding areas, viatical settlements are a genuine option when dealing with severe health conditions. American Life Fund is here to assist Lexington County residents through the viatical settlement process, guaranteeing that you receive the financial support needed to alleviate the strain of high medical costs.

Why South Carolina Residents Need Viatical Settlements

South Carolina, with a population of approximately 5.2 million people, faces distinct healthcare challenges. About 12% of those under 65 live with a disability, and 10% are without health insurance, leaving many residents vulnerable to financial strain due to medical expenses​.

Facing a life-threatening illness can be overwhelming. The medical bills accumulate rapidly, and the stress of managing daily expenses intensifies. For many South Carolina residents, this scenario is all too familiar. Without sufficient insurance coverage, the costs of treatments, medications, and hospital visits can quickly exhaust savings.

A viatical settlement can provide much needed financial relief in these situations. By selling your life insurance policy for a lump sum cash payment, you gain immediate access to funds that can be used to cover:

  • Medical Bills: Pay for treatments, surgeries, medications, and other healthcare needs without incurring debt.
  • Living Expenses: Ensure that rent, mortgage payments, utilities, and daily necessities are taken care of, reducing stress for you and your family.
  • Personal Goals: Fulfill dreams or important personal goals, such as taking a memorable family trip, funding education, or securing your loved ones’ future.

For South Carolina residents facing these financial burdens, a viatical settlement isn’t just a financial transaction; it’s a means to achieve peace of mind and a better quality of life during difficult times​​.

FAQ about Viatical Settlements in South Carolina

To qualify for a viatical settlement in South Carolina, the policyholder must be diagnosed with a life-threatening illness and have a life insurance policy typically valued at $150,000 or more. Specific requirements can vary, so consulting with a viatical settlement provider is necessary for detailed eligibility criteria.

The payout amount in a viatical settlement depends on several factors, including the death benefit of the policy, the policyholder’s life expectancy, and the specific terms of the insurance policy. Generally, the payout is more than the policy’s cash surrender value but less than its death benefit. Factors such as the policy’s premiums and the policyholder’s health status also influence the payout amount.

Typically, if the policyholder is seriously or chronically ill, the proceeds from a viatical settlement are not subject to federal income tax. However, South Carolina residents should consult a tax advisor to understand any potential state tax implications, as state tax laws can differ from federal regulations.

The viatical settlement process in South Carolina usually takes a few weeks. This timeline includes the review of the life insurance policy, assessment of medical records, and finalization of the agreement. The duration can vary based on the speed of document submission and the efficiency of the viatical settlement provider.

Once a viatical settlement is executed, the purchaser becomes the new owner and beneficiary of the life insurance policy. This means that the original policyholder will no longer receive the death benefit. Instead, the policyholder receives an immediate lump sum payment, providing financial relief during their time of need.

Sources:

  1. The average annual cost of cancer treatment can range from $28,000 to $55,000, depending on the type and stage of cancer​, https://scdhec.gov/news-releases/latest-south-carolina-infant-maternal-mortality-reports-reveal-alarming-trends
  2.  Treatments for advanced heart disease can also exceed $45,000 per year​, https://scdhec.gov/health/diseases-conditions/heart-disease-stroke/heart-diseas
  3. South Carolina, with a population of approximately 5.2 million people, faces distinct healthcare challenges, https://scdhec.gov/sites/default/files/media/document/SHA-Report-20240521.pd
  4. About 12% of those under 65 live with a disability, and 10% are without health insurance, https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts-all.html

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