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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 Ohio 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 Ohio?

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 Ohio?

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.

Ohio Counties Eligible for Viatical Settlements

Adams, Allen, Ashland, Ashtabula, Athens, Auglaize, Belmont, Brown, Butler, Carroll, Champaign, Clark, Clermont, Clinton, Columbiana, Coshocton, Crawford, Cuyahoga, Darke, Defiance, Delaware, Erie, Fairfield, Fayette, Franklin, Fulton, Gallia, Geauga, Greene, Guernsey, Hamilton, Hancock, Hardin, Harrison, Henry, Highland, Hocking, Holmes, Huron, Jackson, Jefferson, Knox, Lake, Lawrence, Licking, Logan, Lorain, Lucas, Madison, Mahoning, Marion, Medina, Meigs, Mercer, Miami, Monroe, Montgomery, Morgan, Morrow, Muskingum, Noble, Ottawa, Paulding, Perry, Pickaway, Pike, Portage, Preble, Putnam, Richland, Ross, Sandusky, Scioto, Seneca, Shelby, Stark, Summit, Trumbull, Tuscarawas, Union, Van Wert, Vinton, Warren, Washington, Wayne, Williams, Wood, and Wyandot.

At American Life Fund, we are proud to serve the residents of Franklin County, home to the vibrant city of Columbus, Ohio’s capital. We understand the impact that a life-threatening illness can have on your financial stability. Our mission is to extend a helping hand, guiding you through the viatical settlement process. We’re committed to making sure that you receive the financial support you need, helping you regain peace of mind during challenging times.

In Cuyahoga County we are here to alleviate your financial burdens, offering a supportive process tailored to your needs. Our team prioritizes your needs, working to secure the funds you require promptly. Trust us to guide you through this important financial decision with empathy and expertise.

At American Life Fund, serving the residents of Hamilton County, home to the city of Cincinnati, means being able to give hope through our viatical settlement services. We are dedicated to supporting you during trying times, offering an option for financial freedom when you need it most. Our team specializes in all areas of viatical settlements, making sure you have a beautiful experience with us.

For residents of Summit County, we are here to support you, providing guidance every step of the way. Our team understands the challenges you face and is committed to delivering the financial relief you need immediately. With American Life Fund, you can trust that you’re in caring hands.

In Montgomery County, American Life Fund is your partner in viatical settlements. We recognize the importance of securing your financial well-being during difficult times. Our team offers solutions tailored to the needs of Montgomery County residents, guaranteeing that you receive the maximum value for your life insurance policy. We are committed to providing a straightforward process, allowing you to focus on what matters most.

With our experienced team specializing in providing compassionate support, we help residents of Lucas County through the process of viatical settlements. We work closely with you to make sure that you fully understand your options, allowing you to make informed decisions about your financial future.

FAQ About Viatical Settlement in Ohio

In Ohio, the viatical settlement process allows individuals with a life-threatening illness to sell their life insurance policy to a third party for a lump sum that is less than the death benefit but more than the cash surrender value. The process involves:

  • Finding a viatical settlement company.
  • Applying for the settlement.
  • Undergoing a review of your life insurance policy and medical records.
  • Receiving an offer.
  • Transferring the policy ownership to the buyer once the offer is accepted. 

Companies like American Life Fund specialize in providing such services and could guide you through the process.

Ohio law (Chapter 3916.05) requires a minimum payout of at least 100% of the policy’s cash surrender value for individuals who have a life-threatening illness. Deductions are allowed for premiums needed to keep the policy in force.

Ohio law (Chapter 3916.03) restricts settlements within two years of policy issuance unless specific conditions are met, including life-threatening illness, spousal death, or financial hardship.

Viatical settlement providers in Ohio are required to maintain a fidelity bond and an escrow account for viatical settlement proceeds, as mandated by Ohio law (Chapter 3916.07).

Viatical settlement proceeds are generally not subject to federal income taxes for seriously ill individuals in Ohio, according to the Internal Revenue Service (IRS). This tax exemption applies if the policyholder has a life-threatening illness. However, tax laws are complex and subject to change, and there may be specific state tax implications in Ohio. It is recommended to consult with a tax professional for personalized advice.

Yes, policyholders have a rescission period during which they can change their mind after accepting a viatical settlement offer in Ohio. This period typically lasts for a few days after receiving the funds (often 15 days), but it can vary based on the contract and state regulations. It’s important to review the terms of your viatical settlement agreement to understand the specific conditions and time frame for rescission.

Ohio has strict regulations in place to protect the privacy of individuals during the viatical settlement process. These include requirements for viatical settlement companies to comply with state laws governing the confidentiality and security of personal and health information. Companies are required to maintain the privacy of policyholders’ medical records and personal data, only using it as necessary to facilitate the settlement process.

When choosing a viatical settlement provider in Ohio, look for companies that are licensed and regulated by the Ohio Department of Insurance. It’s important to research potential providers, review their reputation, experience, and the terms they offer. Viatical settlements companies like American Life Fund can offer personalized guidance and support throughout the process.

   In Ohio, policyholders have rights to:

  • Receive detailed disclosures about the settlement process, fees, and compensation.
  • Be informed about alternatives to viatical settlements.
  • Have their privacy protected, including the confidentiality of medical and personal information.
  • A rescission period to change their mind after accepting an offer.

These rights are designed to protect policyholders and ensure transparency and fairness in the viatical settlement process.

Once a viatical settlement transaction is completed, and the policy is sold, the agreement is final, regardless of any changes in the seller’s life expectancy. The viatical settlement company assumes the risk of the seller’s life expectancy changing. If the seller lives longer than expected, the settlement amount does not change, and the company retains ownership of the policy.

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