Get your estimate in under 2 minutes.
Use the calculator to get a preliminary estimate based on the information you provide about your health and life insurance policy. The result is not a formal offer, approval, or exact policy value.
A formal viatical settlement offer requires a fuller review of medical records, policy documents, premiums, loans, ownership, and other case details. You can review an estimate without agreeing to sell your policy.
Try the calculator now. It’s free, it’s easy, and it could be worth six figures.
What the Calculator Can Tell You
The calculator uses a limited set of answers to produce an early viatical settlement estimate. It can help you decide whether a full review may be worth exploring.
Accurate, current answers make the estimate more useful, but no online result can replace medical underwriting and policy verification.
How Accurate Is a Viatical Settlement Calculator?
A viatical settlement calculator can provide a useful preliminary estimate, but it cannot determine a final offer. It does not have every medical record, policy illustration, loan balance, premium projection, or legal document needed to price a transaction.
The calculator result may be closer to a final offer when the information entered is current and complete. It may differ more when the insured person’s health has changed, premiums are scheduled to increase, a policy loan is outstanding, or the policy has terms that require added review.
The most accurate answer comes after medical and policy underwriting. American Life Fund explains how life expectancy is determined for a viatical settlement in a separate guide.
Preliminary Settlement Estimate vs. Formal Offer
A preliminary estimate and a formal offer serve different purposes.
Preliminary calculator estimate
- Uses the answers entered online
- Helps show whether a full review may make sense
- Does not confirm eligibility
- Does not require the policy owner to accept or continue
- Can change after records and documents are reviewed
Formal viatical settlement offer
- Follows a review of medical and policy information
- Uses verified policy values, premiums, loans, and ownership details
- Reflects the terms and costs of the specific policy
- States the amount being offered under the proposed transaction
- Can be accepted, declined, or reviewed with an adviser
An estimate should never be presented as a promise of what American Life Fund will pay.
How Viatical Settlement Value Is Calculated
A viatical settlement value is based on several connected factors. The death benefit is important, but it is not the only number that matters. The review also considers the insured person’s health, the expected cost of keeping the policy active, and any amounts that reduce the policy’s net benefit.
FINRA notes that settlement value depends on factors including age, health, and policy terms. A buyer also takes responsibility for future premiums and receives the death benefit later. Those future costs are part of the valuation.
Medical Underwriting and Life Expectancy
Medical underwriting reviews the insured person’s diagnosis, current health, treatment, medical history, and other available records. The result may include an estimate of life expectancy for valuation purposes. It is not a prediction of an exact date.
Life expectancy affects how long a buyer may need to pay premiums before receiving the death benefit. A shorter estimated period may reduce projected premium costs. A longer period may increase them. Each case still requires individual review.
The calculator uses limited health information. A formal review uses more complete records, which is one reason the final offer may differ.
Death Benefit
The death benefit, sometimes called the face amount, is the amount the policy is designed to pay when the insured person dies, subject to the policy’s terms and any reductions.
A larger death benefit may support a larger settlement, but there is no fixed percentage that applies to every policy. Premiums, loans, health information, policy structure, and other factors affect the result.
Current and Projected Premiums
Premiums are the payments required to keep the policy active. The review considers both the current premium and the amount that may need to be paid in the future.
Higher or increasing premiums can reduce settlement value because the buyer expects to take over those costs after the sale. A current policy illustration or premium schedule may be needed to understand how much funding could be required over time.
Policy Type and Terms
Term life, whole life, universal life, group life, and FEGLI coverage can have different rules, costs, conversion rights, and transfer documents. The label on the policy does not determine value by itself. Review the life insurance policy requirements for viatical settlements for more detail.
The review may consider:
- Whether the policy is active
- Whether a term policy can be converted
- Current cash value, if any
- Premium guarantees or projected increases
- Riders and other policy benefits
- Ownership and beneficiary records
- Assignment or transfer restrictions
American Life Fund’s current minimum policy amount is $200,000. Meeting the minimum does not guarantee eligibility or an offer. Review the full viatical settlement eligibility requirements before deciding whether to continue.
Outstanding Loans and Other Reductions
A policy loan, unpaid premium, lien, withdrawal, or other claim against the policy may reduce the net death benefit or the amount available to the policy owner.
The calculator may not capture every reduction. A formal review confirms the current loan balance and other policy obligations with the insurer. The offer should make clear how any deductions or adjustments affect the amount paid to the owner.
Why the Estimate May Change
The viatical settlement calculator estimate may change after the full file is reviewed. Common reasons include:
- Medical records show different or more current information than the online answers
- The insurer confirms a different death benefit or premium schedule
- Premiums are expected to rise
- A policy loan or lien reduces the net benefit
- A term policy needs conversion
- A rider, assignment, trust, or ownership issue affects the transaction
- The policy is not active or is at risk of lapsing
- State requirements affect the available transaction structure
A change does not always mean the first estimate was calculated incorrectly. It may mean the formal review included information the calculator did not have.
Who Should Use the Calculator?
The viatical calculator may be useful for a policy owner, spouse, adult child, or caregiver who wants an early sense of whether a viatical settlement review could be appropriate.
American Life Fund generally reviews cases involving:
- A serious, terminal, or chronic illness
- An active life insurance policy with a death benefit of at least $200,000
- Clear legal ownership or authority to act for the policy owner
- Term life, whole life, universal life, group life, or FEGLI coverage
Eligibility depends on the individual medical and policy facts. A calculator result does not approve the policy or confirm that a settlement is available in the policy owner’s state.
What Information Should I Have Ready?
Use the most current information available. You do not need to know every policy detail to start, but accurate answers make the preliminary estimate more useful.
Helpful information includes:
- The policy’s death benefit
- The type of life insurance policy
- Current premium amount and payment schedule
- The insured person’s age and diagnosis
- Disease stage or current health status, when relevant
- Any known policy loans or withdrawals
- Whether the policy is active
- Whether the person using the calculator owns the policy or has authority to help
Do not guess when a figure can be checked on a policy statement. If you are helping a parent or spouse, ask the policy owner for permission before sharing private medical or insurance information.
What Happens After I Receive an Estimate?
You decide whether to stop or request a fuller review. There is no obligation to sell the policy because you used the calculator.
If you continue, the viatical settlement process generally includes:
- Confirming basic eligibility and policy ownership
- Signing authorizations for medical and policy records
- Reviewing current medical information and policy documents
- Completing medical and financial underwriting
- Receiving a formal offer, if the case qualifies
- Deciding whether to accept, decline, or ask more questions
The formal offer should be reviewed on its own terms. Do not rely on the calculator result when making the final decision.
Questions to Ask About a Formal Offer
Before accepting an offer, ask for clear answers to these questions:
- What is the gross offer?
- What is the net amount I would receive?
- Are any fees, commissions, loans, or other adjustments deducted?
- Who will own the policy after closing?
- Who will pay future premiums?
- What happens to the original beneficiary’s death benefit?
- When will funds be released?
- What right do I have to cancel under the contract and state law?
- Could the payment affect taxes or needs-based benefits?
FINRA advises policy owners to understand the details of an offer, consider alternatives, and check whether the company or broker is properly licensed where required. Tax, legal, public-benefit, and insurance questions may require advice from qualified professionals.
Viatical Settlement Calculator Frequently Asked Questions
Is the Viatical Settlement Calculator Result a Formal Offer?
No. The result is a preliminary estimate based on limited information. A formal offer requires a fuller medical and policy review.
Does the Calculator Guarantee That I Qualify?
No. Eligibility depends on the insured person’s health, policy amount and terms, ownership, state availability, and other case details.
Can a Policy Loan Lower the Final Offer?
Yes. A loan or other amount owed against the policy may reduce the net death benefit or the amount available to the policy owner. The current balance must be verified.
Can a Term Life Policy Have Settlement Value?
It may. Term policies do not usually build cash value, but it may still be possible to sell a term life insurance policy through a viatical settlement. The review may need to confirm the remaining term and any conversion rights.
Do I Need a New Medical Exam?
American Life Fund generally reviews existing medical records rather than requiring a new medical exam. Updated records or clarification from a treating provider may still be needed.
Why Did My Formal Offer Differ From the Estimate?
The formal review may have found updated medical information, different premiums, a loan balance, a policy feature, or another detail that was not included in the calculator. Ask for an explanation of the factors used in the offer.
Can I Use the Calculator for a Parent or Spouse?
You can help gather general information, but the policy owner controls the decision unless another person has legal authority. Permission may be needed before private information can be discussed or records requested.
A Clear Next Step, Without Pressure
American Life Fund has worked with policy owners and families for more than 20 years. The calculator helps you decide whether a full review is worth your time, without an obligation to sell.
If you continue, ask questions and review the formal offer carefully. You may accept it, decline it, or discuss it with a trusted adviser.
Start With an Estimate, Then Review the Facts
An online calculator can provide an early estimate. It cannot determine the exact value of a life insurance policy or promise what a formal offer will be.
Use the estimate to decide whether to gather the full medical and policy information. Make the final decision only after you understand the verified offer, deductions, transfer terms, and effect on the policy’s beneficiaries.
Continued Reading
- Viatical Settlement vs. Life Settlement
- Are Viatical Settlements Taxed?
- Viatical Settlement Laws and Consumer Protections
