5 Things You Should Know About Viatical Settlements

Apr 1, 2020 by

Viatical settlements can help individuals suffering from terminal illnesses pay for medical expenses, healthcare, and retirement. However, many people are hesitant to sell their life insurance policy due to common misconceptions about life settlements. If you’re thinking about selling your life insurance policy, here are five things you should know about viatical settlements.

Viatical settlements provide immediate access to cash.


Viatical settlements provide immediate access to a large lump-sum cash payment, allowing policyholders to immediately cover the costs of treatment, in-home care, and other significant expenses instead of waiting for the life insurance policy’s death benefit.

In addition to immediate access to cash, viatical settlements eliminate the costs of monthly insurance premiums. When a viatical settlement provider purchases your life insurance policy, they become the new beneficiary and receive the death benefit of the insurance policy. In turn, the viatical settlement provider begins paying your monthly premiums, eliminating your monthly payment obligation. Selling your life insurance policy immediately frees up space in your budget, allowing you to live comfortably without worrying about additional financial obligations.

Viatical settlements provide financial peace of mind.

Most life insurance policyholders have no idea what a viatical settlement is or how selling their life insurance policy can provide financial peace of mind. For individuals facing financial hardships, the sale of a life insurance policy can alleviate financial stress and help you avoid creating a financial burden for your family.

Whether you’re struggling to cover the costs of treatment, medical expenses, or in-home care, selling your life insurance policy can relieve you of medical debt or financial obligations related to life insurance premiums.

Viatical settlements do not restrict your use of viatical funds.


Because there are no restrictions on the lump-sum payment you recieve from your viatical settlement, you have the freedom to use your viatical funds however you want. While some life insurance policyholders choose to take vacations, take time off from work, or fund their retirement, others use viatical funds to pursue higher-quality treatment, travel to receive better medical care, or pay for hospice care.

Not everyone qualifies for a viatical settlement.

To qualify for a life settlement, life insurance policyholders must be at least 70 years of age and in good health, and the face value of their life insurance policy must be at least $100,000. To qualify for a viatical settlement, life insurance policyholders must have a terminal illness and the face value of their life insurance policy must be at least $100,000.

If you’re suffering from a terminal illness or a reduced life expectancy, submitting your medical records to a viatical settlement provider can help determine your eligibility for a viatical settlement. Life insurance policyholders with terminal illnesses, including cancer, Alzheimer’s, and ALS, do not need to meet an age requirement to qualify for a viatical settlement.

Applying for a viatical settlement is quick and easy.


If you’re considering selling your life insurance policy, start by filling out a quick and easy online application through the American Life Fund to determine your eligibility. The American Life Fund connects life insurance policyholders to multiple viatical settlement providers, allowing policyholders to choose the best option for their financial situation.

After you find the best choice for your financial situation, you’ll sign a written agreement with the viatical settlement broker and receive a lump-sum payment for your insurance policy. Viatical settlements are quick and simple, and most viatical settlement transactions are completed in as little as two weeks.

Whether you’re interested in paying for high-quality treatment or funding your retirement, a viatical settlement can serve as a lucrative source of income and help you live more comfortably.

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