Answers to your viatical Frequently Asked Questions.
Viatical Frequently Asked Questions
Are Viatical Settlements legal?
Yes. According to a U.S. Supreme Court ruling dating back almost a century, a life insurance policy is considered your personal property. Like any other property, you can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of the policy rights.
Are Viatical Settlements regulated?
Viatical Settlements are currently regulated in most states. Typically, licensing and oversight is handled by a state’s department of insurance. For more information on how your state regulates Viatical Settlements, refer to your state department of insurance website or ask us. We’ll be happy to provide you with more information if you need it.
Do I qualify for a Viatical Settlement or a Life Insurance Loan?
Individuals diagnosed with advanced-stage cancer or another serious illness with life insurance of more than $50,000 in face value will generally qualify for both Viatical Settlements and Life Insurance Loans. If you haven’t been diagnosed with a serious illness, but are over 70, you may qualify for one of our Life Settlement programs for seniors. Learn more about our Life Settlement programs here.
What types of policies are eligible for Viatical Settlements and Life Insurance Loans?
Universal Life, Whole Life, Variable Universal Life, Term and Convertible Term Life policies issued by U.S.-based insurance companies. Joint, second-to-die policies, group policies and those issued by FEGLI, VGLI and SGLI are typically eligible as well.
How much should the policy’s face value be?
Generally, a policy with a face value of $50,000 or higher may be eligible for our Viatical Settlement or Life Insurance Loan programs.
I don't have a serious illness. Do I have any options?
If you haven’t been diagnosed with a serious illness, but are over 70, you may qualify for one of our Life Settlement programs for seniors. Learn more about our Life Settlement programs here.
How much is my policy worth?
Since individual policy amounts, premiums and life expectancies vary, it is difficult to set a standard amount. After a brief consultation, we can generally provide you with an estimate range of your policy’s value as a Viatical Settlement or Life Insurance Loan.
Are there any restrictions on how I can use the proceeds?
Unlike other financial options, there are no restrictions on how the proceeds from a Viatical Settlement or Life Insurance Loan can be used.
Are there any up-front fees or obligation to sell my policy?
There are no application fees or up-front costs. If at any point you aren’t satisfied with the offers we present, you are free to walk away at no obligation or cost to you. If you accept an offer, our fee will be paid directly by the purchaser through the escrow agent.
Is a health exam required?
No. Unlike when you purchased your life insurance coverage, a health exam isn’t required for you to qualify for a Viatical Settlement or Life Insurance Loan. Medical underwriting decisions are based on an independent review of the medical records we will obtain from your health care providers.
Who is going to buy my policy?
Life insurance policies are purchased by licensed Viatical Settlement provider companies who are interested in buying a variety of assets to balance their overall investment portfolios. Most provider companies work exclusively with large institutional investors such as banks and pension funds
How long will it take to get the funds from my policy?
Depending on your state’s laws, funds are released from escrow within 72 hours of the buyer’s receipt of confirmation of change of ownership and beneficiary rights from the insurance company.
Will I have to pay any premiums after my policy is sold?
No. Once the policy is sold, you will have no future premium obligations whatsoever.
Will my privacy be protected?
How am I protected financially?
There are no out of pocket costs when you work with us and you have no obligation to sell your policy or to accept any offer. A third party escrow company is used in every transaction and we work with only the most reputable licensed companies in the industry.
Am I allowed to change my mind?
In most states you have 15 days (in some states up to 30 days) after the receipt of the money from the buyer to change your mind.
Why should I work with a Viatical Settlement Broker?
We strongly recommend working with a licensed Viatical Settlement Broker rather than directly with a buyer. As a broker, we will shop your policy to more than twenty licensed buyers and provide you with several offers to choose from. This competitive bidding process means that you will get the most for your policy. And unlike direct buyers, we are able to provide you with access to multiple funding options, including Viatical Settlements and Life Insurance Loans.
Should I work with more than one Viatical Settlement Broker?
To maximize your policy’s value, it’s always best to work with only one broker since buyers tend to avoid policies that they have received from multiple brokers. We will never ask you to sign an exclusive agreement with us. However, since we incur significant costs to underwrite and market your policy, we do ask for your loyalty throughout the process.
Are there any options if I don’t want to sell my policy?
Yes. We offer a Life Insurance Loan that allows you to borrow funds against your life insurance policy, while still maintaining a policy benefit. Individuals diagnosed with advanced-stage cancer or another serious illness with life insurance of more than $50,000 in face value will typically qualify for a Life Insurance Loan.
Should I sell my policy or borrow against it?
Depending on your individual situation, a Life Insurance Loan may work better for you than a Viatical Settlement. Typically, this decision will depend on whether you have a smaller immediate cash need and/or desire to preserve some of the policy’s benefit to pass on to your beneficiaries. When you contact us, we will help you decide which option is best for you and your family.
Is a credit check required for a Life Insurance Loan?
No. There will never be any credit checks for the Life Insurance Loan. Since the only collateral for the loan is the insurance policy, your individual credit worthiness doesn’t matter.
How long does a Life Insurance Loan take?
Speed is a major benefit of the Life Insurance Loan. If your medical providers and insurance company act without delay, you can expect to receive your funds about four weeks.
May I help you?
If you’re looking for answers, you have come to the right place. Here you’ll find the most commonly asked questions about our programs and the funding process. If you don’t see what you’re looking for, please contact us and I will personally answer any questions you may have. I look forward to helping you decide whether our programs are right for you and your family. I hope I was able to answer your viatical frequently asked questions.
Rick Johnson, Esq.