When someone is considering a viatical settlement, or when an individual sells their life insurance policy for cash, they may ask what costs are involved. They may also wonder if there are any obligations when applying for a settlement. The answer depends on who you decide to work with. At American Life Fund, we don’t charge our clients hidden fees or lock them in with confusing contracts. However, when completing a viatical, there are a few things you should be aware of.

What Does It Cost to Complete a Viatical?

From completing your application to finalizing closing documents, there is no cost for a client to complete the viatical process. The viatical company doesn’t receive funds for their services during the settlement process. Instead, they receive funds once the original policy owner has passed.

How much an outfit receives is determined by whether they are a viatical company or a viatical broker. If you work with a company, there are no fees paid to a third-party, also known as a broker fee. This is a fee given to a broker to compensate them for finding an offer for your policy. This fee is deducted from your offer amount. However, by working with a company, you bypass this fee and because of this, your offer amount may be significantly higher.

Do I Have to Sell My Policy Once I’ve Started the Process?

Just as there are no fees during the viatical process, there are no obligations as well. In fact, you can cancel the settlement at any point during the process. If you decide that a viatical settlement isn’t for you or decide you want to pursue another option, simply inform the company you’re working with and they will immediately cancel your case. You can revisit a viatcal at a later date if you choose.

What About After I Accept An Offer?

Many people think that once they accept an offer from a company, they are obligated to complete the transaction. This is completely untrue. Once you accept an offer, you are sent a closing contract to be signed and returned to the company. After you sign and return these documents, the viatical company then submits the required paperwork to the insurance provider to change the policy ownership. Once the ownership has been transferred, the company will wire your funds to you, usually within one business day.

Even after you have received your funds, you can still cancel the transaction. The cancellation deadline varies but the general rule is you have 15 days from when you receive the payout or 30 days from when you signed the closing documents, whichever date is sooner.

At American Life Fund, we are dedicated to meeting our client’s needs by tailoring each viatical to your unique situation. We are flexible and work with you to make sure you are more than satisfied with your settlement. Contact us for today for your free, no obligation consultation at 877-658-1360 or get a free instant quote to see what your policy is worth.

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