A diagnosis of a chronic or terminal illness changes your life completely and immediately, whether you’re the one affected or it’s someone close to you. Between medical bills and daily expenses, you may not have the funds you need readily available. If that’s the case for you, a life insurance viatical settlement can give you more stability as you navigate this time.
A viatical settlement could be your path to taking your autonomy back and finding security for yourself and your loved ones. Settlement Benefits Association is here to give you the facts and help you decide if a viatical settlement for life insurance is your best step forward. From the moment you reach out to us until the money is in your hands, we’ll be by your side to take you through the entire process.
A life insurance viatical settlement allows a terminally ill person to exchange their life insurance policy for an immediate cash benefit. The payout is for less money than the policy’s death benefit, but the policyholder can use it while they’re still alive. The payout yields more funds than outright canceling the insurance.
The process is similar to getting a regular life settlement, but the requirements are slightly different. To qualify for a viatical settlement, you must have:
Choosing a viatical settlement over other financing options brings significant benefits. Most notably, you get more money when you sell your policy to the highest bidder instead of closing it outright or letting it lapse. When you cancel your policy, you lose most of the money you’ve spent years putting into it in exchange for a small severance. With a settlement, you could potentially receive up to 70% of your policy’s value. In exchange, the third-party buyer takes on your premium payments and becomes the beneficiary of your full policy upon your death. Another benefit of choosing a viatical settlement is quick access to your payout. You can begin using it immediately for anything you want or need. Let’s look at some of the most common uses people put their viatical settlements toward.
When you’re dealing with a serious illness in the United States, you’re likely saddled with significant costs in medical bills. The lump sum from a viatical settlement can take care of some of your bills or even pay them off, allowing you to use the rest of your hard-earned money for whatever you want. You can also take the viatical settlement and use it to cover the cost of alternative health treatments that can either be expensive or not covered under your health insurance.
The people who care about you most have been there for you throughout your illness, and they will continue to stand by your side for the rest of your life. The funds from a viatical settlement can cover your end-of-life care and funeral costs so they don’t have to think about it later. Alternatively, you could use the settlement to help them out of their own challenging financial situations. However you choose to spend it, your people are sure to appreciate your thoughtfulness and generosity.
Maybe you have a bucket list that’s only half complete and limited time to do what you want. The money from a viatical settlement may give you the means to live the rest of your life to the fullest, whether that means taking a cruise around the world, planning a trip to visit family or helping others who could benefit from a financial boost.
Viatical settlement agreements first came about in 1911 following the Supreme Court case Grigsby v. Russell. In this case, Dr. Grigsby attempted to cash in a life insurance policy one of his patients sold to him following their death. The executor of the patient’s estate challenged this notion, fighting the case in court until it reached the highest level. Ultimately, Dr. Grigsby won the case and was able to procure the patient’s death benefits, making it the first case of a viatical insurance settlement.
This case set the precedent of one’s life insurance policy being considered personal property. The court ruled that anyone can trade or sell their life insurance policy to another benefactor, just as they can sell a house, car or stocks. The buyer then takes on payment of the insurance premiums and the overall benefit amount following the original owner’s death. Grigsby v. Russell also paved the way for senior life settlements.
The early precedent aside, viatical settlements didn’t become popular until the 1980s with the rise of the AIDS epidemic. At the time, AIDS was fast and deadly. Many of those diagnosed were young, single people who didn’t have beneficiaries in need. These settlements allowed them to make the most of their policies while they were still alive.
With many of today’s medical advancements, viatical settlements are not as well-known or understood. That’s why it’s vital to use a viatical settlement company like Settlement Benefits Association to evaluate your policy.
Laws and regulations for viatical settlements vary from state to state. Before deciding to pursue your settlement, you should look up all the guidelines for your home state.
As Grigsby v. Russell determined over a century ago, your insurance policy is your property, and we’ll make sure it’s handled with the care and legality you would expect from any property exchange.
At Settlement Benefits Association, we specialize in life and viatical settlements. For more than two decades, we’ve worked to get clients across 36 states the money they need to secure their financial futures. One of the most common questions people have is the difference between these types of settlements.
Life settlements and viatical settlements are similar in that they both allow you to cash in on your life insurance policy early and walk away with a good portion of the money you’re owed through it. In either case, we’ll work with you to find the highest bidder who gives you everything you need in a contract. These settlement types differ in who they’re meant to assist:
At Settlement Benefits Association, we know that time is of the essence when it comes to the matter of getting money in your hands. Once we evaluate your policy and decide to move forward with your account, we will do everything we can to expedite the process and close a deal as soon as possible. If you’re prepared for what to expect, we can move into proceedings much faster. Here is a brief overview of the process we’ll guide you through:
Choose a step
The first step in our partnership is for you to contact us and tell us about your situation. We want to understand what you need from your settlement so we can give you the personalized attention you deserve. We’ll also make sure you’re informed about the process and able to determine whether our services are the right choice for you.
As we continue our discussions, we’ll ask for a copy of your policy so we can appraise it. We’ll also look at other pertinent information, like your medical records. From there, we can create a plan dedicated to getting you the most through your viatical settlement contract.
When we have a buyer, we’ll order a detailed and comprehensive contract from them. Together, we’ll go over every section and provide explanations to ensure you have a complete understanding of your agreement.
After we all understand the contract, we’ll discuss the details with all interested parties. That includes the policy buyer, you as the settlement provider and the escrow which will handle your funds. We’ll make sure to rectify all outstanding items, and then you’ll sign your contract.
At this point, it’s time to receive your cash settlement. You can start making your arrangements as soon as you have the funds. Keep in mind that you’ll have a rescission period of up to 15 days depending on state guidelines. During this time, you can decide to return the money in exchange for your policy for any reason.
A viatical settlement agreement can give you or someone close to you peace of mind, and a company like Settlement Benefits Association wants to make sure you get exactly what you need. We’ll help you understand everything about your viatical insurance policy and how you can get through this process as easily and quickly as possible.
When working with our professionals, you can rest assured that we will work diligently to maximize your viatical settlement. Our licensing is up to date at all times and we have a commitment to confidentiality and security for your comfort. If you’re ready to see how your policy can benefit you today, fill out our form for a free evaluation or call us at 561-963-5101.
Yes, Viatical Settlements are legal. Insurance commissions in many states oversee their activity and license settlement brokers to ensure integrity and prevent fraud.
The Viatical Settlement contract is the written agreement between the policy seller and buyer. It details the sale’s terms, including the payment amount. Contracts also usually include a cancellation period that allows the seller to change their mind. This time frame varies by state but is typically about 15 days.
The “viator” in a Viatical Settlement is the individual policy owner or certificate holder in group policies. In many cases, the viator is also the insured, but a Viatical Settlement may be possible when the viator and insured are different parties.
The most significant risk of a Viatical Settlement is choosing the wrong way to execute it. Working with a highly respected Viatical Settlement broker can help eliminate or minimize risks like:
Viatical Settlements start with an informal conversation with us before moving on to policy review, buyer presentation, and negotiation. Once we have the best offer, you decide whether to accept it. If you move forward, we help complete the required paperwork and contracts. The buyer releases funds from escrow after the rescission period has elapsed and ownership changes are complete. Discover more in our online guide about the process.
Fill out our free policy calculator today to see if you qualify and find out how much you can get for your policy.
