Hoping to calculate your viatical settlement payout?
In this article, you’ll learn all about the eligibility requirements for a viatical settlement, how much money you could earn from your settlement, and whether or not a viatical settlement is the right choice for you.
If you’re looking to sell your life insurance policy for a lump-sum cash payment, you can do so through either a viatical settlement or a life settlement.
The main difference between viatical and life settlements has to do with the policyholder themselves. In general, life settlements are for healthy seniors, while viaticals are reserved for people of any age who are living with a life threatening or terminal illness.
Both life settlements and viatical settlements have certain eligibility requirements, which we’ll cover in more detail in the following sections.
What are the Eligibility Requirements For Viatical Settlement?
If you’re trying to determine whether a viatical settlement through American Life Fund is appropriate for you, take a look at the following eligibility factors.
Eligibility Factor #1: Policyholder Prognosis
As we mentioned earlier, viatical settlements are reserved for those who are living with a life threatening or chronic illness, such as cancer, ALS, etc. Viatical settlements are not eligible for healthy seniors. However, healthy seniors may be entitled to a life settlement.
Eligibility Factor #2: Policyholder Age
Along with policyholder prognosis (and therefore, life expectancy), age can play a factor in your eligibility for a viatical settlement. We’ll talk more about this later on.
Eligibility Factor #3: Policy Age
In order to qualify for a viatical settlement, you must have had your current life insurance policy for a minimum of 2 years at the time you are looking to sell.
Eligibility Factor #4: Policy Value
When it comes to qualifying for a viatical settlement, the face value of your current life insurance policy must be a minimum of $100,000.
Eligibility Factor #5: Policy Type
Almost all policy types are eligible to sell. Whether you have whole life, term life, universal, group, or joint life insurance, you could be eligible for a viatical settlement.
What are the factors for calculating a viatical settlement’s value?
In addition to those factors we mentioned above, we also look at the following when evaluating the final payout amount of your viatical settlement.
As we mentioned earlier, viatical settlements are specifically reserved for people suffering from a life threatening or chronic illness—this means that health status, along with life expectancy, are the main factors considered when determining the value of individual viatical settlements. More specifically, the more serious someone’s illness is, the higher their viatical settlement offer will be.
Policy size plays a factor in that, the larger the life insurance policy (and death benefit), the higher value the viatical settlement will be.
Because the viatical settlement company becomes responsible for continued payments of the premiums on a life insurance settlement that they purchase, the longer they pay, the more money they lose.
Therefore, patients who have shorter life expectancies (and as a result, less premium payments for the viatical settlement company over time), the more their viatical settlement will be worth.
Having loans out on your insurance policy could make your policy worth less, simply because, in the event those loans are not fully paid off by you, the amount still owed will be deducted from the death benefit that the viatical settlement company is entitled to.
While you can be eligible for a viatical settlement regardless of the type of life insurance you have, certain types may be more valuable to the company than others, which naturally affects the value of your viatical settlement.
Life Insurance Issuer
The company who manages your life insurance policy can play a role in determining the value of your viatical settlement. This is because certain life insurance companies are seen as being more reputable and stable than others, and therefore more likely to be able to pay out the death benefit without issue or delay.
When a buyer (such as a viatical settlement company) chooses to purchase your life insurance policy, they are doing so with many factors in mind.
Companies only want to make investments into policies they feel will be worthwhile to them in the long run. For example, there is always the chance that a policyholder could live much longer than expected, which means that the company who purchased their policy would lose money over time–this is what’s known as the “buyer’s risk”.
Because there are no restrictions on how you spend your viatical settlement, many people choose to put their money towards a whole host of things—everything from medical expenses andalternative cancer treatments, to dream vacations, early retirement, and living expenses— the list of possibilities is endless!
Find out How Much Your Viatical Settlement Could Be Worth
Now that you’re familiar with the eligibility requirements for viatical settlements, as well as what factors are used to calculate your individual viatical settlement offer, you may be curious to see exactly how much you could benefit from selling your life insurance.
Why Choose American Life Fund For Your Viatical Settlement
If you’re looking for a great viatical settlement company, look no further than us here at American Life Fund. There’s a reason we are the top viatical settlement company, and that reason is our values. We are devoted to delivering quality client service and are committed to providing fair, generous offers to clients.
At American Life Fund, we specialize in working with patients who have been diagnosed and are living with a serious illness, which means that we are experts when it comes to managing cases like yours with care and compassion.
Because we believe you deserve cash now, we are committed to high offers with quick turnaround times. Unlike other companies who employ brokers and charge extra fees for doing so, we at American Life Fund work directly with clients like you, to ensure you receive only the best quality offer for your policy.
Through our individually-tailored experience, we make the process of trading in your life insurance policy for a viatical settlement as easy and stress-free as possible.
Viatical Settlement Frequently Asked Questions
Who can offer a viatical settlement?
Unlike life settlements, which are offered by many companies– only viatical settlement companies (like American Life Fund), brokers, and stockholders/investors are able to offer viatical settlements.
How is my viatical settlement calculated?
Generally, viatical settlements tend to pay out 50-70% of your overall insurance policy’s face value.
How long does it take to receive my money from a viatical settlement?
The great thing about viatical settlements is that once the process has begun and the necessary paperwork has been filed, funds can be paid out to the seller in only a few short weeks.
Disclaimer: American Life Fund is not a licensed provider and may not be licensed in your state. Principles hold brokers license in various states nationwide. Due to life settlement regulations varying state by state, our services are not available to residents in all states, including Georgia and Florida. The content contained in this website is not applicable for consumers in states where American Life Fund is not permitted to make life settlement transactions, solicit or advertise. Any offer is conditional, contingent upon written terms and conditions, and is non‐binding, as well as subject to due diligence and execution of closing documents.