You should explore all of your options and always get a viatical settlement appraisal before selling your life insurance policy. Especially, if you are chronically ill.
A viatical settlement is only one of your options, if you have determined you need to access the value of your life insurance policy and are chronically or terminally ill. Beneficiaries and survivor needs are the basis of insurance planning and the original intent of your policy should always be considered. Other options may include life settlement loans or medicaid life settlements.
If you find your quality of life choices limited due to finances, have a need for liquidity to square away your affairs in an effort keep your overall estate from suffering or just want to cruise around the world while you can, a viatical or a life settlement may be the only way to fulfill your wishes.
Please know that often you can sell just a portion of your insurance policy, but in no event should you sell all or a portion of your insurance policy without having it independently appraised. There are insurance agents, life settlement brokers, life settlement providers, individual investors and even unlicensed reps in some states; all willing to talk about viating your insurance policy. Our life settlement calculator will give you a rough estimate of the value of your life insurance policy as a viatical life settlement.
Notes About Viatical Settlements
A Viatical and a life settlement are very similar. Viaticals are for those that have a prognosis of terminally ill. Terminally ill is defined by your state guidelines.. Typically the prognosis has to be less than 24 to 48 months, depending on your state. A life settlement is essentially the same, but you do not meet the definition of terminal. They are underwritten in much the same way, but are taxed differently.
There are often more contractual options for the terminally ill with respect to their insurance policies. It is the chronically ill that have a life expectancy of 3 or more years that find their policy options more limited. In many instances, a viatical settlement is the only option to get needed funds from an insurance policy, in particular if the policy has no cash value or is term insurance.
Currently, about 45 states have laws and statutes around viaticals and life settlements. The added regulations, disclosure mandates and licensing requirements have done much to protect you, the consumer. If your state is unregulated it may be prudent to deal with someone who is conducting business in other states that require licensing.
The Life settlement value of all or a portion of your life insurance policy has to be evaluated and each case is different.
The basic information that goes into arriving at an appraisal range is:
- Age
- Gender
- Health conditions
- Rating of your insurance company
- Type of Policy
- Cash Surrender Value
- Premiums
- State of residence
When you get a viatical appraisal your personal and contact information is treated as strictly confidential. Only your health and insurance policy information is appraised, by comparing and contrasting it against a database of thousands of life settlements that have actually funded. Each case is viewed independently, as even subtle changes in health status can have a major impact on an accurate value of your insurance policy.
Viaticals are certainly not for everyone, but a viatical life settlement may provide you with the needed liquidity you so very much desire. In any event, do not sell all or even a portion of your insurance policy without having it appraised.