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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 Minnesota 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 Minnesota?

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 Minnesota?

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.


Viatical Settlement Minnesota

In Minnesota, viatical settlements provide much needed financial support for individuals facing life-threatening illnesses. These settlements allow policyholders to sell their life insurance policies in exchange for a lump sum payment, which can be invaluable for covering medical expenses, paying off debts, or improving their quality of life.

The cost of treating life-threatening illnesses in Minnesota can be substantial. According to the Minnesota Department of Health, the average annual cost of cancer treatment ranges from $25,000 to $55,000, depending on the type and stage of cancer. Similarly, treatments for advanced heart disease can also exceed $45,000 per year. These high costs show the importance of viatical settlements in providing immediate financial relief to those in need.

Residents across various counties in Minnesota can benefit from viatical settlements, offering a practical solution to alleviate the financial burden associated with severe medical conditions.

Minnesota Counties Eligible for Viatical Settlements

Aitkin, Anoka, Becker, Beltrami, Benton, Big Stone, Blue Earth, Brown, Carlton, Carver, Cass, Chippewa, Chisago, Clay, Clearwater, Cook, Cottonwood, Crow Wing, Dakota, Dodge, Douglas, Faribault, Fillmore, Freeborn, Goodhue, Grant, Hennepin, Houston, Hubbard, Isanti, Itasca, Jackson, Kanabec, Kandiyohi, Kittson, Koochiching, Lac qui Parle, Lake, Lake of the Woods, Le Sueur, Lincoln, Lyon, Mahnomen, Marshall, Martin, McLeod, Meeker, Mille Lacs, Morrison, Mower, Murray, Nicollet, Nobles, Norman, Olmsted, Otter Tail, Pennington, Pine, Pipestone, Polk, Pope, Ramsey, Red Lake, Redwood, Renville, Rice, Rock, Roseau, St. Louis, Scott, Sherburne, Sibley, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wabasha, Wadena, Waseca, Washington, Watonwan, Wilkin, Winona, Wright, and Yellow Medicine.

In Hennepin County, including the city of Minneapolis, residents facing life-threatening illnesses have viatical settlements as a genuine option to help. The cost of treating serious illnesses in Hennepin County is more than most would like to consider. American Life Fund is dedicated to assisting Hennepin residents by providing expert guidance through the viatical settlement process, ensuring you secure the necessary funds to manage healthcare expenses and maintain financial stability during challenging times.

For residents of Ramsey County, including St. Paul, viatical settlements offer financial support when dealing with severe health conditions. American Life Fund is committed to helping individuals through this financial process, making sure that you receive the support needed to alleviate the hardship of high medical costs and focus on your recovery.

In Dakota County, which includes cities like Eagan and Burnsville, viatical settlements can be a lifeline for those struggling with life-threatening illnesses. American Life Fund provides personalized assistance to help you navigate the viatical settlement process, ensuring you make informed decisions to manage your healthcare costs effectively.

Residents of Anoka County, including Coon Rapids and Blaine, can benefit from viatical settlements when facing serious health issues. American Life Fund is here to guide you through the viatical settlement process, offering tailored support to help you address your financial needs and maintain your quality of life.

In Washington County, including areas like Woodbury and Cottage Grove, viatical settlements can provide essential financial relief for those dealing with life-threatening health conditions. The cost of medical treatments in Washington County can be substantial, often surpassing $50,000 annually. At American Life Fund, we offer dedicated support to help you through the viatical settlement process. We make sure that you have access to the funds needed to cover medical expenses and reduce financial stress during difficult times.

For residents of St. Louis County, including Duluth, viatical settlements offer economic support when dealing with severe health conditions. American Life Fund is committed to helping individuals through this financial process, ensuring you receive the support needed to alleviate the hardship of high medical costs and focus on your recovery.

Why Minnesota Residents Need Viatical Settlements

Minnesota, home to approximately 5.7 million people, faces unique healthcare challenges. With around 8.7% of those under 65 living with a disability and 7% without health insurance, many residents are at risk of troubling financial strain due to medical expenses​​.

Being diagnosed with a life-threatening illness is an unimaginable event. The medical bills start piling up, and the stress of managing everyday expenses becomes overwhelming. For many Minnesota residents, this is a reality. Without adequate insurance, the costs of treatments, medications, and hospital visits can quickly deplete savings.

A viatical settlement can provide a lifeline in these situations. By selling your life insurance policy for a lump sum cash payment, you gain immediate financial relief. This money can be used to cover:

Medical Bills: Pay for treatments, surgeries, medications, and other healthcare needs without the burden of debt.

Living Expenses: Ensure that rent, mortgage payments, utilities, and daily necessities are taken care of, reducing the stress on you and your family.

Personal Goals: Fulfill dreams or important personal goals, such as taking a memorable family trip, funding education, or securing your loved ones’ future.

For Minnesota residents facing these challenges, a viatical settlement isn’t just a financial transaction; it’s a pathway to peace of mind and a better quality of life during difficult times.

FAQ about Viatical Settlements in Minnesota

To qualify for a viatical settlement in Minnesota, the policyholder must be diagnosed with a life-threatening illness, such as cancer, ALS, or another severe condition. Additionally, the life insurance policy should typically have a death benefit of at least $150,000 and must be in place for at least two years.

The payout amount in a viatical settlement depends on several factors, including the death benefit of the policy, the policyholder’s life expectancy, 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. Factors such as the policy’s premiums and the policyholder’s health condition are also important in determining the payout amount​​.

Generally, if the policyholder has a life threatening illness, the proceeds from a viatical settlement are not subject to federal income tax. However, Minnesota residents should consult a tax advisor to understand any potential state tax implications, as state tax laws can differ from federal regulations​.

The viatical settlement process in Minnesota usually takes a few weeks. This timeline includes the review of the life insurance policy, assessment of medical records, finalization of the agreement, and transference of the funds to the insured. Factors such as the speed of document submission and the efficiency of the viatical settlement provider can affect the overall duration​.

Once a viatical settlement is executed, the purchaser becomes the new owner and beneficiary of the life insurance policy. This means that the original policyholder will no longer receive the death benefit. Instead, the policyholder receives an immediate lump sum payment, providing financial relief during their time of need​​.

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