If you or someone you love is facing a life-threatening illness such as cancer, you might consider a viatical settlement as a financial option to cover medical expenses and associated costs. Choosing the right viatical settlement broker or provider is your next step in receiving the most cash for your policy. It is important to know these differences before choosing between a provider and a broker.
While many companies offer life settlements to seniors looking to sell their life insurance policies, only viatical settlement brokers & providers can offer viatical settlements to those with life-threatening illnesses like cancer.
It’s important to note that viatical settlement brokers and providers are required to be licensed in most states, which ensures that they meet certain standards of practice.
Here’s a look at some of the most frequently asked questions about viatical settlement brokers and providers to help determine which option is best for your current situation.
At American Life Fund, we specialize in viatical settlements and work around the clock to help our clients achieve their financial goals. If you want to learn why we are America’s top viatical settlement company, contact us at 877-261-0632 today. You can also request a free estimate to find out what your life insurance policy is worth.
MORE>> Here’s our Guide for Choosing a Viatical Settlement Provider
What is a Viatical Settlement Broker?
A Viatical Settlement Broker is a licensed professional or entity that acts as an intermediary between the policyholder looking to sell their life insurance policy and potential buyers or investors. Their primary responsibility is facilitating the viatical settlement process by assisting life insurance policyholders in evaluating their options, obtaining offers from buyers, and ensuring compliance with applicable laws and regulations.
What Does a Viatical Settlement Broker do?
Generally, viatical settlement brokers work with multiple viatical settlement providers to help their clients navigate the process, but their fees eat into the settlement.
Who Does a Viatical Settlement Broker Represent?
A viatical settlement broker represents the person with the life insurance policy looking for a viatical settlement. They ‘broker out’ the insured’s policy to a network of licensed providers to generate bids/offers on their client’s behalf.
What Is the Difference Between a Viatical Settlement Broker And a Viatical Settlement Provider?
A viatical settlement broker is a licensed insurance professional who, in exchange for a fee or commission, negotiates a viatical settlement contract between the owner of an insurance policy and a viatical settlement provider.
Generally, viatical settlement brokers work with multiple viatical settlement providers to help their clients navigate the process, but their fees eat into the settlement.
In contrast, a viatical settlement provider or company like American Life Fund can work directly with a policy owner. A company can offer a settlement on an insurance policy without charging extra fees or commissions.
How do Viatical Settlement Brokers Get Compensated?
Viatical Settlement Brokers typically earn a commission or fee based on a percentage of the settlement proceeds. This fee is agreed upon and disclosed to the policyholder before engaging the broker’s services. The compensation structure may vary among brokers, so it’s essential for policyholders to understand the terms and fees involved.
What Criteria Do Viatical Settlement Providers Use to Determine the Value of a Policy?
The valuation of a life insurance policy in a viatical settlement varies, influenced by several factors beyond just the face value of the policy. Providers assess life expectancy with an eye on medical documentation to estimate the timeline. The type and terms of the policy, including any existing cash value, are evaluated alongside ongoing premium obligations. Economic conditions and the competitive landscape of viatical settlements also play a role, affecting the overall demand and available funding. Learning these components can help you anticipate the offer you might receive and navigate your settlement with confidence.
What Can American Life Fund Do For You as a Viatical Settlement Company?
As a viatical settlement company, American Life Fund can work directly with the policyholder, which typically means we can offer the maximum possible payment for your viatical settlement and get you paid in as little as a few weeks.
To learn why we are America’s top viatical settlement company, contact us at 877-261-0632 today. You can also request a free estimate to determine what your life insurance policy is worth.
Do Viatical Settlement Brokers And Providers Need to Hold a Valid Life Insurance Provider License?
Yes, in most cases, to become a viatical settlement provider, a company or a broker must be licensed as an insurance professional for at least one year.
In some states, they must also complete a viatical settlement training course before they can be certified.
What Legal Protections Exist for Policyholders in a Viatical Settlement Transaction?
The legal framework for viatical settlements is designed to protect policyholders, ensuring transparency and fairness. Protections include strict licensing for brokers and providers, mandatory disclosure of all transaction details, and privacy measures to protect your personal information. These regulations are in place to prevent fraud and ensure that policyholders are fully informed and treated fairly throughout the process.
Do Viatical Settlement Professionals Have to Complete Continuing Education Courses?
Most of these rules vary from state to state, but in many cases, viatical settlement brokers must complete continuing education courses to maintain their license.
Professionals who work for viatical settlement companies may also have to take continuing education courses.
At American Life Fund, we believe that it’s important to stay on top of changes in the industry, so we are always learning new ways to help our clients.
How To Choose The Viatical Settlement Broker or Provider That’s Right For You
Now that you have a general idea of the requirements for viatical settlement brokers and providers, you may be wondering how to choose a company that meets your needs.
First of all, insist that the application process is simple, thorough, and fast. Then find a company that specializes in viatical settlements as some company’s primary focus are life settlements.
MORE>> Here’s our Guide for Choosing a Viatical Settlement Provider
At American Life Fund, we specialize in viatical settlements and work around the clock to help our clients achieve their financial goals. If you want to learn why we are America’s top viatical settlement company, contact us at 877-261-0632 today. You can also request a free estimate to find out what your life insurance policy is worth.
Viatical Settlement Broker & Provider FAQs
What Is A Viatical Settlement?
Viatical settlements allow someone diagnosed with a life-threatening illness to sell their life insurance policy for cash. This insured 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.
To put it simply, a viatical settlement is a legally binding agreement between a life insurance policyholder (Viator) with a serious illness and a viatical settlement company.
Who Qualifies For a Viatical Settlement?
Any individual with a chronic or life-threatening illness and an existing life insurance policy qualifies for a viatical settlement. The policy can be term, whole life, joint, group, or universal life insurance.
For a policy to be eligible for a viatical settlement, it must be in effect for at least two years and have a face value of $150,000 or more.
If you meet these criteria but still aren’t sure about your particular situation, you can find out instantly if you qualify using our easy online form in just a few minutes.
Some factors a viatical settlement company may consider are:
- Type of diagnosis
- Stage of the diagnosis
- Policy value
- Cost of insurance premiums
Regardless of the type of life insurance you hold, you should consider a viatical settlement if you want to enjoy the benefits of financial planning.
