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What is a Viatical Settlement?

Viatical settlements allow someone diagnosed with a life-threatening illness to sell their life insurance policy for cash. This person is known as the “viator.”

The third party they sell their policy to is an institutional investor, usually a viatical settlement company such as us here at American Life Fund.

A viatical settlement is a legally enforceable agreement between a life insurance policyholder with a severe illness (viator) and a viatical settlement business.

How Does a Viatical Settlement in Maryland Work?

The process begins when the policyholder contacts a viatical settlement company like American Life Fund. After an initial consultation, the viator will apply.

Once the application is received, our underwriters will evaluate the case and verify all information provided by the viator.

If the case is approved, the viator will be asked to sign contracts issuing the viatical company as the new policy owner and beneficiary in exchange for the agreed-upon offer amount. Then we will issue a payment for the offer amount. It’s that simple! The entire process can take as little as two weeks from start to finish.

Viatical Settlement in Texas

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Who Is Eligible For A Viatical Settlement in Maryland?

Insured’s Health

To qualify for a viatical settlement, the insured must be diagnosed with a life-threatening illness such as cancer or ALS.

Policy Type

All life insurance policy types are accepted. Whether you have whole life, term life, universal, group, or joint life insurance, you could be eligible for a viatical settlement. However, if the policy is issued through an employer, the insured must be separated from the employer or nearing separation from their employer in order to sell their policy.

The Age Of The Life Insurance Policy

The life insurance policy must have been in place for at least two years.

The Value Of The Life Insurance Policy

The life insurance policy must have a death benefit of at least $150,000.

What are the Benefits of a Viatical Settlement in Maryland?

There are many benefits of entering into a viatical settlement. However, the two most common reasons people do it are for the money and to ease the burden on their loved ones.

Some other benefits include:

  • No medical exams are required
  • You can use the money however you want
  • It’s a speedy process
  • You can choose the settlement company you want to work with

American Life Fund is one of the leading viatical settlement companies serving the citizens of the USA. We have helped many people through this difficult time in their lives.

Viatical Settlement in Texas

How are Viatical Settlement Payments Calculated?

Viatical Settlement in Texas

The payout you receive from a viatical settlement is based on several factors, including but not limited to:

  • The death benefit of your life insurance policy
  • Your health condition
  • The type of life insurance policy you have

These are just a few of the factors that will affect your payout. For an accurate and free quote, call us at 877-590-4088, and one of our expert representatives will be more than happy to help you.

The Pros And Cons Of A Viatical Settlement

Not sure if a viatical settlement is a right move for you or your loved one? Here are some things to keep in mind.

Pros:

  1. You’ll get a one-time payout much higher than the cash surrender value through a viatical.
  2. Help pay for medical expenses such as medical premiums, treatment, or long-term care.
  3. Use your money for better care, travel, or anything else to make you happier.
  4. With a viatical settlement, you can stop making premium payments. The new owner i.e. the viatical settlement company, will take over those responsibilities. They will also be in charge of any other maintenance costs.

Cons:

  1. Government assistance programs such as Medicaid are need-based programs based on your income and assets, so you may lose eligibility if your finances improve.
  2. Beneficiaries won’t be able to receive the death benefit from your life insurance policy  unless you choose to give them part of your viatical settlement payout.

Viatical Settlement Examples

Here are a few examples of how people have used their viatical settlement payouts:

  • John had a life insurance policy with a $500,000 death benefit. He was diagnosed with terminal cancer and decided to enter a viatical settlement. He received a payout of $300,000 and used the money to travel and spend time with his family members.
  • Mary had a life insurance policy with a $250,000 death benefit. She received $150,000 and used the money to pay for her medical expenses and treatments.
  • Mike had a life insurance policy with a $150,000 death benefit. He received $90,000 and used the money to pay off his debts.

As you can see, viatical settlements can be very beneficial for seriously ill people who need financial assistance.

Viatical Settlement vs Life Settlement

When looking into viaticals, you may hear the term “viatical life settlement” thrown around — but viatical settlements and life settlements are two separate transactions. A life settlement is similar to a viatical settlement, but the two have several key differences.

How do life settlements work?

  • A life settlement is a transaction that occurs when an individual over 75 sells a life insurance policy to a settlement provider for cash, usually yielding considerably more than the policy’s surrender value.
  • The size of a life settlement payout is mostly determined by the policyholder’s health status and the premium payments of the policy. The money from selling life insurance policies can be used to finance long-term care, medical procedures, travel, or family events.
  • Many people are unaware they can sell their life insurance policy for cash. When a policy becomes too expensive or unnecessary, the owner typically lets it lapse without knowing there is another option—the life settlement market.
Viatical Settlement in Texas

Alternatives To Viatical Settlements

Not sure if a viatical settlement is right for you? Here are some other options to consider

Withdrawals

You can withdraw from the cash value of your life insurance policy, but this will reduce the death benefit paid to your beneficiaries.

Surrendering the policy

You can cancel your life insurance policy and receive the cash surrender value. This is usually a bad idea because you will get less money than if you had sold the policy in a viatical settlement.

Although viatical settlements offer many benefits, they aren’t the only form of financial assistance available. Be sure to speak with a professional before making any decisions.

Is a Viatical Settlement Right For You?

With life insurance policies increasing daily, it’s important to consider all options before deciding. For those with a chronic or terminal illness – selling your policies may be one way to afford quality care while still securing a financial cushion that will help you improve your quality of life.

If you or a loved one is facing a life-threatening illness and needs a Viatical Settlement, please call us at 877-297-4592 to see how we can help.


Maryland Counties Eligible for Viatical Settlements

Allegany, Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George’s, Queen Anne’s, St. Mary’s, Somerset, Talbot, Washington, Wicomico, and Worcester.

In Baltimore County, which includes the metropolitan area of Baltimore, residents battling severe illnesses can obtain financial relief through viatical settlements. At American Life Fund, we understand the difficulties faced by individuals in this busy county. Our team offers support and guidance throughout the viatical settlement process, ensuring you make well-informed financial decisions.

Residents of Montgomery County, including cities like Rockville and Bethesda, can access crucial financial support through viatical settlements during challenging times. American Life Fund is dedicated to assisting individuals through the viatical settlement process, offering personalized help to make sure you fully understand your options. Our experienced team is committed to helping you make the best decisions for your financial health and well-being.

In Prince George’s County, with cities such as Upper Marlboro and Bowie, dealing with a serious illness can be particularly stressful. American Life Fund provides support through viatical settlements, assisting residents in accessing the necessary funds. Our knowledgeable team will guide you through the process, offering clear assistance to help you make informed financial decisions during these tough times.

Residents of Anne Arundel County, including Annapolis, can benefit from viatical settlements when facing life-threatening illnesses. At American Life Fund, we are committed to offering the support and guidance needed throughout this process. Our team helps you understand your options, making sure that you can make well-informed choices about your financial future.

In Howard County, home to cities such as Columbia and Ellicott City, viatical settlements provide a financial lifeline for those dealing with serious illnesses. American Life Fund delivers personalized support to residents, guiding you through the viatical settlement process. Our objective is to ensure you thoroughly understand your options and can make the best financial decisions for your situation.

Frederick County, known for its vibrant communities, is home to many who may benefit from viatical settlements. At American Life Fund, we specialize in providing financial relief through viatical settlements to those coping with life-threatening illnesses. Our team is here to provide you with the necessary information and support to make informed financial decisions, helping you manage healthcare costs and living expenses in this county.

Insights for Viatical Settlements in Maryland

Maryland, with a population of approximately 6.2 million people as of 2023, includes a large portion of residents who could benefit from viatical settlements.

Regarding healthcare coverage, around 7.5% of the population under the age of 65 live with a disability, and 6.1% are without health insurance. This represents a considerable portion of the population that may face substantial medical and financial challenges without sufficient coverage.

Viatical settlements offer necessary financial support by providing a lump sum cash payment. This allows individuals to better manage healthcare costs, living expenses, or even fulfill personal goals during challenging times. For Maryland residents facing high medical expenses and living costs due to a life-threatening illness, viatical settlements can be a helpful financial option.

FAQ about Viatical Settlement in Maryland

To qualify for a viatical settlement in Maryland, the policyholder must be diagnosed with a life-threatening illness, and have a life insurance policy of $150,000 or more.

The payout amount in a viatical settlement depends on several factors, including the death benefit of the policy, the policyholder’s medical status, and specific terms of the insurance policy. Typically, the payout is more than the policy’s cash surrender value but less than its death benefit.

Generally, if the policyholder is seriously ill, the proceeds from a viatical settlement are not subject to federal income tax. It is recommended to consult a tax advisor to understand any potential state tax implications in Maryland.

The viatical settlement process usually takes a few weeks, including the policy and medical records review, and the finalization of the agreement.

Once a viatical settlement is executed, the purchaser becomes the new owner and beneficiary of the life insurance policy, meaning the original policyholder will no longer receive the death benefit. Instead, the policyholder receives an immediate lump sum payment.

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