If you have recently been diagnosed with a life-limiting or terminal illness and you require funds quickly to pay for medical treatment, care, or simply the enjoyment of your future, you might consider a viatical settlement. This option can be risky and you may not currently hold a policy that is suitable for sale in this way without particular changes being made. In this article, we look into what it means to sell your life insurance policy via a viatical settlement, how the process works and how you can get started. Take a look at the information below to decide whether a viatical settlement constitutes a suitable solution for your current situation.
What is a Viatical Settlement?
Simply put, a viatical settlement involves the sale of a life insurance policy by the policyholder (or viator) to a buyer or investor who then becomes the beneficiary of the coverage in the event of the viator’s passing. The process is often overseen and managed by a specialist broker. The option works best for individuals with no dependents or named beneficiaries, who require swift access to cash. The amount that the contract may be sold for will always be less than its eventual payout value but more than its cash surrender value. This is the only way the arrangement is worthwhile for both parties.
Who to Talk to About Selling?
Many brokers that buy policies now operate at least partially, if not entirely, online. Be sure to undertake research and find a specialist that is well-established and favorably reviewed. Of course, your situation is unique and the options available online might not cover all of your requirements. It may be best to seek assistance or advice from life insurance experts before you take any steps towards arranging a settlement. After all, there are certain risks involved in following this route. Your circumstances may change and you may become more expensive to re-insure as time passes following the sale of your initial policy. To find out more about selling your coverage online and what’s involved, here is a guide to viatical settlements. This guide will also help you estimate the value of your life insurance policy in seconds should you decide to sell it on to a buyer, investor or specialist charity.
Can I Sell My Policy?
The policies best suited to being sold in this way are those that provide whole life coverage. However, if you wish to sell a term policy, you may still be able to do so as long as the contract in question has the capacity to be converted to whole life. There may also be restrictions tied to the face value of your coverage. The minimum value permitted for viatical settlement purposes often depends on your location, but it may also have to do with your insurance provider or the viatical settlement broker you choose. Be sure to speak to your insurance provider and seek specialist advice to find out whether your life insurance coverage is suitable for sale in this way.