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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 Massachusetts 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.

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Who Is Eligible For A Viatical Settlement in Massachusetts?

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 Massachusetts?

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.

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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.
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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.

Massachusetts Counties Eligible for Viatical Settlements

Barnstable, Berkshire, Bristol, Dukes, Essex, Franklin, Hampden, Hampshire, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester.

In Middlesex County, residents facing a life-threatening illness can find financial relief through viatical settlements. At American Life Fund, we understand the challenges faced by individuals in this populous and diverse county. Our dedicated team provides compassionate support, guiding you through the viatical settlement process to ensure you make well-informed decisions about your financial future.

For residents of Worcester County, viatical settlements offer an important financial lifeline during difficult times. American Life Fund is here to assist you every step of the way. We offer personalized support to help you with viatical settlements, making sure you understand your options and can make the best decisions for your financial health in this vibrant community.

In Suffolk County, managing a serious illness can be particularly challenging given the county’s urban environment and high living costs. American Life Fund provides support through viatical settlements, helping residents access the funds they need. Our experienced team will guide you through the process, ensuring you are well-informed and can make confident financial decisions during this challenging time.

Residents of Norfolk County facing a life-threatening illness can benefit greatly from viatical settlements. At American Life Fund, we are committed to providing the support and guidance needed through this process. Our team will help you understand your options, allowing you to make informed choices about your financial future in this county.

In Essex County, American Life Fund offers vital assistance to those dealing with life-threatening illnesses through viatical settlements. Our team is dedicated to simplifying the process and providing clear information, so you can make the best financial decisions for your situation. We strive to support Essex County residents in managing their financial needs during difficult times.

Bristol County residents can turn to American Life Fund for support when facing a life-threatening illness. Viatical settlements provide financial resources, and our team is here to make sure you fully understand your options. We are dedicated to offering personalized assistance, supporting you through the process.

Insights for Viatical Settlements in Massachusetts

Massachusetts, home to about 7 million people, has a significant portion of residents who may benefit from viatical settlements. Around 15% of the population is aged 65 and older, facing rising healthcare needs and costs.

Approximately 5.4% of residents under 65 live with a disability, and 3.8% are without health insurance, highlighting a segment of the population that faces substantial medical and financial challenges.

Healthcare costs in Massachusetts are among the highest in the nation. The average cost of assisted living is $6,500 per month, and nursing home care can exceed $12,000 per month, according to Genworth’s 2024 report. These high costs can create financial strains, particularly for those with severe health conditions.

For individuals diagnosed with serious illnesses, medical expenses can be overwhelming. A study revealed that costs for Medicaid beneficiaries with cancer range between $30,540 and $47,850 in the six months following diagnosis.

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

FAQ about Viatical Settlement in Massachusetts

In Massachusetts, individuals diagnosed with a life-threatening illness, typically with a life expectancy of two years or less, are eligible for viatical settlements. The policyholder must have a valid life insurance policy to sell.

The amount received from a viatical settlement depends on factors such as the policy’s death benefit, the policyholder’s life expectancy, and the terms of the policy. Generally, the payout is higher than the policy’s cash surrender value but less than the death benefit.

Generally, proceeds from a viatical settlement are not subject to federal income tax if the policyholder is seriously ill. However, it is advisable to consult with a tax professional to understand any specific state tax implications in Massachusetts.

The viatical settlement process typically takes several weeks to complete. This includes the time needed for policy review, medical records assessment, and finalizing the agreement.

Once a viatical settlement is completed, the purchaser becomes the new owner and beneficiary of the life insurance policy. This means the original policyholder will no longer receive the death benefit but will receive an immediate lump sum payment instead.

Viatical settlements provide immediate financial relief, allowing policyholders to cover medical bills, living expenses, or other financial needs. This can be particularly valuable for those facing significant financial challenges due to a life-threatening illness.

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