Viatical Settlement Texas
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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 Texas 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.
It really is that simple!
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Who Is Eligible To Get A Viatical Settlement in Texas?
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 face value of at least $200,000.
What are the Benefits of a Viatical Settlement in Texas
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.
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 final payout 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
Texas Residents
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:
- 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 company, 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 a person from Texas 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 $200,000 could result in a payout of $120,000–$140,000.
As you can see, viatical settlements can be very beneficial for seriously ill people who need financial assistance.
What About Life Settlements?
Viatical settlements and life settlements may sound similar but they are separate transactions. A life settlement is similar to a viatical settlement, but the two are distinct.
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 company for cash, usually yielding considerably more than the policy’s surrender value.
- This differs from the focus on a life threatening illness which is the main focus of a viatical
- 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.
- Life settlements are usually subject to tax, while viaticals are usually tax-free
- 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.
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“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
Texas Counties* Eligible for Viatical Settlements
Anderson, Andrews, Angelina, Aransas, Archer, Atascosa, Austin, Bandera, Bastrop, Baylor, Bee, Bell, Bexar, Blanco, Bosque, Bowie, Brazoria, Brazos, Brewster, Brooks, Brown, Burleson, Burnet, Caldwell, Calhoun, Callahan, Cameron, Camp, Carson, Cass, Castro, Chambers, Cherokee, Childress, Clay, Cochran, Coke, Coleman, Collin, Colorado, Comal, Comanche, Concho, Cooke, Coryell, Cottle, Crane, Crockett, Crosby, Culberson, Dallas, Dawson, Deaf Smith, Denton, DeWitt, Dickens, Dimmit, Donley, Duval, Ector, Ellis, El Paso, Erath, Falls, Fannin, Fayette, Fisher, Floyd, Fort Bend, Franklin, Freestone, Frio, Galveston, Garza, Gillespie, Glasscock, Goliad, Gonzales, Gray, Grayson.
Residents across these counties in Texas use viatical settlements to unlock the value of their life insurance policy at the point it can make the greatest impact.
*Listed above are the top 80 Texas counties by population — though residents across all 254 counties in Texas may qualify for and benefit from a viatical settlement.
Viatical Settlement Harris County (Houston area)
Harris County is the most populous county in Texas, encompassing the greater Houston metropolitan region. With high living and healthcare costs common in large urban areas, a viatical settlement allows policyholders to convert the built-up value of a life insurance policy into immediate cash. This provides residents facing life-threatening illness the flexibility to cover medical care, manage housing or family needs, and focus on quality of life rather than just long-term premiums.
Viatical Settlement Dallas County
Dallas County serves a diverse, fast-moving urban/suburban population. Rising healthcare and household costs often place additional financial pressure on individuals dealing with critical illness. A viatical settlement gives policyholders a chance to access the value of their life insurance now — helping with treatments, living expenses, or family priorities — instead of waiting for the future.
Viatical Settlement Tarrant County (Fort Worth area)
Tarrant County, which includes the Fort Worth metro area, offers residents a mix of modern healthcare infrastructure and traditional community settings. For families navigating serious illness, a viatical settlement can convert years of insurance premiums into meaningful cash now — allowing for choices that support care, time with loved ones, and personal goals rather than just survival.
Viatical Settlement Bexar County (San Antonio area)
In Bexar County, including San Antonio, many households are balancing caregiving, healthcare costs, and family commitments. A viatical settlement enables policyholders to transform a life insurance policy into cash that can relieve the financial burden of chronic or terminal illness — offering freedom and flexibility when it matters most.
Viatical Settlement Travis County (Austin area)
Travis County, home to Austin and surrounding tech-driven suburbs, faces rising living and medical expenses amid rapid growth. For individuals facing life-threatening health conditions, a viatical settlement provides an option to unlock the value of their life insurance now — giving them access to funds for treatments, daily living, or personal priorities rather than waiting for future payouts.
Viatical Settlement Collin County
Collin County is one of the fastest-growing suburban counties near Dallas, with increasing healthcare and housing-cost pressures. A viatical settlement gives policyholders here a way to turn their life insurance policy into an immediate cash resource — enabling them to address care, stability, or family needs without depending only on long-term benefits.
Insights for Viatical Settlements in Texas
Texas is home to over 30 million residents, making it one of the fastest-growing states in the nation. Around 13.2 % of Texans are aged 65 and older, placing a significant portion of the population in the senior demographic with rising healthcare and long-term care demands.
Health-insurance data show that roughly 16 % of Texans remain uninsured, and about 10.9 % of Texans under age 65 live with a disability. These statistics indicate that many households confront serious medical and financial challenges when illness strikes.
According to recent surveys (such as by Genworth Financial), the average cost of assisted living in Texas is approximately $4,900 per month, while nursing-home care can average near $7,000 per month. These escalating costs can quickly overwhelm savings, especially when combined with limited insurance coverage.
For individuals coping with severe illnesses like cancer or other terminal conditions, medical expenses can exceed $40,000 within six months of diagnosis. In such scenarios, a viatical settlement offers Texans the opportunity to convert a life insurance policy into a lump-sum cash payment — granting flexibility to cover healthcare, living expenses, or personal goals while maintaining dignity, choice, and stability.
FAQ about Viatical Settlement in Texas
How does the viatical settlement process work in Texas?
In Texas, the viatical settlement process involves selling your life insurance policy to a third party for a lump sum that is less than the final payout but more than the cash surrender value. The process includes finding a reputable and caring company, like American Life Fund, obtaining an evaluation of the policy, receiving an offer, and completing the transaction with all necessary paperwork. The Texas Department of Insurance regulates this process to ensure fairness and compliance with state laws.
Are viatical settlements taxed in Texas?
Viatical settlements in Texas follow federal tax guidelines, which generally state that proceeds from viatical settlements are not taxed if the insured is chronically or terminally ill.
Can I change my mind after accepting a viatical settlement offer in Texas?
Texas law provides a rescission period, typically 15 days after receiving the proceeds, during which you can change your mind, cancel the transaction, and return the funds without penalty. This period allows policyholders to reconsider their decision with minimal risk.
How is my privacy protected during the viatical settlement process in Texas?
Texas ensures privacy protection through regulations that require viatical settlement companies to maintain confidentiality of all personal and medical information provided during the transaction. Companies, like American Life Fund, must comply with strict privacy laws, ensuring that your information is securely handled and not disclosed without your consent.
How do I choose a viatical settlement company in Texas?
Choosing a viatical settlement company in Texas involves researching, evaluating their reputation, experience, and customer service. American Life Fund, for example, specializes in viatical settlements and offers personalized services tailored to your needs.
What rights do policyholders have in viatical settlement transactions in Texas?
Policyholders in Texas have rights including receiving detailed disclosures about the settlement process, understanding the fees and costs associated, knowing the implications of the settlement on their beneficiaries, and the right to privacy. Texas law ensures that policyholders are fully informed and protected throughout the transaction.
What happens if my health status changes after I have sold my policy?
Once a viatical settlement transaction is completed in Texas, the agreement is final, and the buyer assumes the risk associated with changes in health. If your condition changes after the sale, it does not affect the settlement amount you have received. The buyer of the policy bears the risk of such changes. For specific guidance and services in Texas, American Life Fund can provide tailored advice and support throughout the viatical settlement process, ensuring compliance with Texas regulations and a smooth transaction experience.
How does the face value of my life insurance policy affect the expected purchase price in a viatical settlement, and who has the authority to determine it?
The face value of your life insurance policy represents the final payout that would be paid to beneficiaries. In a viatical settlement, this value is used as the foundation for calculating your expected purchase price. The authority to determine this price lies with the viatical settlement company. We evaluate factors such as your health status, policy type, and ongoing maintenance costs like premium payments. American Life Fund is an industry-leading viatical settlement company. We’ve helped thousands of individuals get the most money for their life insurance policy.
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