Viatical settlements are similar to Life Settlements but involve selling a life insurance policy by someone who is terminally ill, usually with a life expectancy of less than two years. In a viatical settlement, the seller receives a lump sum from an investor, typically a percentage of the policy’s face value that could be as much as 70-80%. The investor becomes the beneficiary and will receive the death benefit upon the policyholder’s passing.

This option allows terminally ill individuals to access funds for medical expenses, experimental treatments, or other financial needs while alive. The lump sum can also enhance their quality of life, allowing for travel, time with loved ones, or easing financial burdens.

Viatical settlement firm offer financial relief for end-of-life expenses and investment opportunities for buyers, potentially yielding higher returns than traditional options. The market is regulated to ensure transparency and fairness.

While similar to life settlements, viatical settlements are specifically for terminally ill individuals, providing crucial financial support and a unique investment opportunity. With attention to regulations, they can be a valuable option for those needing financial relief. It is important to consider all options and make informed decisions for end-of-life planning, ensuring individuals have the resources and support to live comfortably and with dignity in their final days.

Life Settlements and Viatical Settlements - two women smiling while drinking coffee. Viatical Settlement

REASONS FOR A VIATICAL SETTLEMENT

ELIGIBILITY FOR Viatical insurance settlement

  • Diagnosed with a terminal illness and have a life expectancy of two years or less.
  • Have a life insurance policy with a face value of $100,000 or more.
  • Some states require the policy to be in force for a certain period of time – usually two to five years.
  • The policyholder must own the insurance policy and not have any active loans against it. 
Life Settlements - A senior couple walking along the beach with their backs to us. ELIGIBILITY FOR VIATICAL SETTLEMENTS

BENEIFTS OF A VIATICAL SETTLEMENT

RETAINED DEATH BENEFIT - Happy optimistic senior man looking at camera with toothy smile

Immediate Cash:

Provides a substantial lump sum payment that can be used to cover medical expenses, improve quality of life, or meet other financial needs.

Higher Value than Surrender:

Typically offers a higher payout than the policy’s cash surrender value, which is the amount the policyholder would receive if they surrendered the policy to the insurance company.

Relief from Premium Payments:

The policyholder is relieved of the responsibility to make future premium payments, which can be significant for large policies.

Financial Flexibility:

Converts an illiquid asset into liquid cash, providing financial flexibility for the policyholder.

WHY USE A VIATICAL SETTLEMENT BROKER?

A Viatical Settlement Broker offers numerous benefits to those looking to sell their life insurance policy. These professionals are well-versed in the industry and have access to a broad network of investors, helping them secure the best deal for clients.

Additionally, brokers provide an added layer of protection, adhering to ethical standards and regulations that prioritize the client’s interests. This ensures peace of mind for individuals wary of financial transactions.
Brokers also offer access to financial assistance for those who might struggle with traditional loans due to health conditions or limited income, providing needed relief from healthcare costs.

Confidentiality is crucial when working with a broker, as they understand the sensitivity of selling a life insurance policy and protect clients’ privacy throughout the process.

Completing a Viatical Settlement Process typically takes 3 to 6 months. Summit Life Settlements aims to shorten this duration to 6-12 weeks with our innovative marketplace, streamlining each step for efficiency.

Our process involves thorough consultations to understand policyholder needs, accurate evaluations of policy value, and marketing to a wide network of buyers. We manage a transparent bidding process, negotiate favorable terms, and handle closing seamlessly.

Using Summit’s advanced Summit Life Marketplace platform ensures policyholders receive expert support and achieve optimal outcomes. Our team guides policyholders, offering insights and assistance to navigate the settlement process confidently. By leveraging Summit’s tools and expertise, policyholders benefit from a quicker, more advantageous process, gaining necessary financial resources efficiently.

Life Settlement - a senior couple smiling while posing to the camera. USE A VIATICAL SETTLEMENT BROKER

VIATICAL SETTLEMENT PROCESS WITH SUMMIT LIFE SETTLEMENTS

HOW CAN SUMMIT LIFE SETTLEMENTS HELP?

A viatical settlement is when someone with terminal or chronic illness with less than 2 years left of life expectancy sells their policy to a third-party for a one-time cash payment. The buyer takes over the premium payments and becomes the beneficiary for when the policyholder passes.

There is no age requirement for a viatical settlement.

Yes, to be eligible one must have a policy with a minimum $100,000 face value.

Where life settlements can take 6-8 weeks, the viatical settlement process can be expedited to be completed in as little as a few weeks due to the urgency of the matter.

The face value of a $1 million policy is $1 million.

There are a few cases when the death benefit does not equal the face value, however, usually the death benefit and face value are the same.

Yes, some states like Florida do not differentiate between life and viatical settlements and simply refer to all life insurance settlements as viatical settlements regardless of health.

No, viatical settlements are tax-free because they are considered an advance on one’s death benefit.

On average, where life settlements payout between 20-25%, viatical settlements can payout between 30-80% of the policy’s face value.