How do I know if I qualify?
- face value amount of insurance policy is $10,000 or more
- policy has been in effect for at least two and is beyond
- your life expectancy is four years or less
After I sell my policy, am I responsible for future premium payments?
- No, the person/company buying the policy becomes responsible
for premium payments
If I accept a viatical settlement and then change my mind, what can I do?
- Most companies offer a 15 day period in which you can
rescind the sale of your policy
What can the money be used for?
- higher quality of life
- maintain high quality of health care
- pay off personal debts
- take a vacation
- buy new car/home
- take care of financial arrangements
Questions to keep in mind when considering viatical settlement
- do I still need life insurance?
- if I sell my police, how is it decided how much money I get?
- is my police an employer/group policy - if so, do I need their
permission to sell it?
- if I sell, who will be the legal owner of the policy?
- do I need the advice of a tax/estate planning advisor before
How do the viatical settlement process work (general overview)?
- provider, broker, etc. will have you complete an application and
medical release form so they can gather information from your
insurance company and doctors
- assuming you qualify based on the information received, the
provider will make an offer for your policy - the amount you are
offered will be based on facts such as your life expectancy,
your insurance premium payments, rating of your insurance
company and policy provisions
- if you accept the offer, you will be asked to sign a viatical settlement contract