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American Life Fund > What Types of Policies Do Viatical Settlement Companies Purchase?

What Types of Policies Do Viatical Settlement Companies Purchase?

If you are pursuing a viatical settlement, you want to make sure you meet the requirements to sell your life insurance policy. This means making sure your life policy is accepted by viatical settlement companies.

What Are The Initial Policy Qualifications?

Before beginning the viatical process, there are a few policy qualifications you need to check off the list to make sure you’re able to sell your policy. First, you must makes sure that the person diagnosed with cancer is also the insured. The policy can be owned by anyone but the person who is insured must meet the viatical settlement medical requirement. If the insured is healthy, they have the option of selling their policy through a life settlement. However, life settlements typically require the individual to be 70 or older. Also, some companies have a minimum policy value requirement. This varies across viatical settlement companies. However, at American Life Fund, we require that you have a policy with $100,000 in value or more.

How Does The Policy Type Affect Qualifying For a Viatical?

There are many different types of life insurance policies including universal, whole, term, and group policies. Although most viatical settlement companies accept all of these policies, there are policy types that are more difficult to purchase than others. For example, group policies, or policies issued through your employer, can pose obstacles for companies. For this type of policy, the insured must be separated from the employer by either retirement or termination. This allows the policy to be converted to a permanent policy so the company can purchase it and become the owner. A term policy can also be unattractive to buyers because premiums tend to become exponentially higher after the term expires. However, many of these policies have the ability to be converted to a permanent policy which eliminates the large premium increase. At American Life Fund, we accept all types of policies.

Are There Other Requirements?

After making sure your policy is eligible, there are a few other requirements to qualify for a viatical settlement. The first is that the company is licensed to purchase policies in your state. Companies must become licensed individually in each state in order to purchase policies from residences in those states. That’s why it’s important to ask the company you’re working with if they are licensed to do business in your state. Secondly, you must meet the health requirements of a viatical. This means you must either be diagnosed with cancer or have a life-threatening illness.

It’s important to keep in mind that these are general standards and can vary between viatical settlement companies. At American Life Fund, we are dedicated to working with you to make sure you qualify for a viatical. If you have questions regarding whether you qualify or to find out what your policy is worth, call us today at 877-421-0148 or get your free instant quote.