What is a Viatical Settlement?

Older woman riding a carousel at an amusement park

A Viatical Settlement turns your life insurance policy into cash. You sell your policy instead of continuing to pay your premiums. After the sale, you have no further obligations to the policy. You receive a settlement amount, determined by you and the buyer, which you can use for anything you want.

Viatical Settlements are designed for people who are¬†terminally ill. At Settlement Benefits Association, we believe you should be able to get the money¬†you have¬†been putting away whenever you want it ‚ÄĒ for medical bills, travel,¬†or anything¬†else.

Our team knows how to negotiate deals with interested parties nationwide, so wherever you are, you can get the funds you need.

What Does a Viatical Settlement Mean in Insurance?

You bought your life insurance policy to protect your loved ones in case something unexpected happened. But your health needs have changed, and you need the money the insurance policy would pay out now. A Viatical Settlement gives you cash to use to cover medical expenses or other costs when you have a terminal illness. 

During the Viatical Settlement process, we work¬†with companies and parties interested in becoming the beneficiary on their policy.¬†The organizations interested in buying the policy pay a sum larger than the policy’s cash surrender value.¬†The buyer becomes the owner and beneficiary and is responsible for¬†future premium payments. Upon the original policy owner¬†passing away, the beneficiary¬†cashes¬†out the policy for its full value, ultimately¬†profiting¬†from the investment.

Older couple kayaking together

What Is the Difference Between a Viatical Settlement and a Life Settlement?

A Life Settlement and a Viatical Settlement both refer to the sale of an existing insurance policy. Viatical Settlements are generally for people who are terminally ill, while Life Settlements are for those with longer life expectancies. The differences between the two vary slightly from state to state.

Working with a professional broker, such as Settlement Benefits Association, means you do not have to worry about whether you need a Life Settlement or Viatical Settlement. We will help you manage the legal aspect of the sale and ensure it complies with your state’s rules.

How Does the Viatical Settlement Agreement Process Work?

The Viatical Settlement agreement process involves several steps:

Choose a step

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
Text message icon

Preliminary Discussions

Contact us to informally discuss your settlement options. If settlement is available, you complete a preliminary life insurance appraisal request.

Document icon

Formal Evaluation and Review

We will formally evaluate your request to maximize the value of your policy.

Medical folder icon

Gather Medical Records

We collect existing medical information and purchase life expectancy reports from up to four underwriters.

Clipboard icon

Present Policy to Buyers

We determine the best way to present your policy to buyers. Before presenting to licensed buyers, we update our strategy to get the best price.

Bar graph icon

Negotiate Price

We negotiate with each potential buyer, driving up bids and demand for your policy.

Text message icon

Communicate Offer

Once we have what we think is the best offer, we communicate that to you. You are under no obligation to accept.

Document icon

Agreement Review

If you decide to move forward, we order contracts from the winning buyer and work with you to ensure you understand them. All parties sign the contracts.

Clipboard icon

Change of Owner and Beneficiary

Once the agreement is complete, the beneficiary changes to the buyer.

Money bag icon

Receive Payment

The client receives their cash settlement. During the rescission period, you have up to 15 days to change your mind and return the cash in exchange for your policy back.

Contact Settlement Benefits Association

At Settlement Benefits Association, we pride ourselves on being what people look for in a Viatical Settlement broker. Our professionals are committed to offering every client a high level of service as they navigate the future of their finances. When a Viatical Settlement is the right choice for your future, we will help you understand the process and guide you through the steps.

Learn more about how you can use a Viatical Settlement to your benefit by contacting Settlement Benefits Association today. Our fiduciary responsibility is of the utmost importance to us, and we maintain our licensing and regularly complete continuing education to stay current.

Get your settlement process started by connecting with our team.

Contact Us

Frequently Asked Questions (FAQs)

A Viatical Settlement is an option for a terminally ill insured individual to access funds by selling their life insurance policy. The buyer typically pays more than the policy’s cash surrender value and less than the death benefit. They become the policy’s new owner and beneficiary and pay any future premiums to keep it in force.

Viatical Settlements require several weeks to complete due to the information we must gather from doctors and your insurance company. Generally, the appraisal process takes six to eight weeks.

In general, two types of Viatical Settlements exist based on the insured’s health ‚ÄĒ terminally ill and chronically ill. Viatical Settlements for the terminally ill are available for insureds with abbreviated life expectancies of fewer than four years. State guidelines vary for chronically ill Viatical Settlements, which can be more complex and challenging to secure.

Calculate Your Life Settlement

Do I Qualify?

Fill out our free policy calculator today to see if you qualify and find out how much you can get for your policy.

Calculate Now

Group of senior citizens enjoying time in the park together