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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 Virginia 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 Virginia?

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 Virginia?

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.

Virginia Counties Eligible for Viatical Settlements

Accomack, Albemarle, Alleghany, Amelia, Amherst, Appomattox, Arlington, Augusta, Bath, Bedford, Bland, Botetourt, Brunswick, Buchanan, Buckingham, Campbell, Caroline, Carroll, Charles City, Charlotte, Chesterfield, Clarke, Craig, Culpeper, Cumberland, Dickenson, Dinwiddie, Essex, Fairfax, Fauquier, Floyd, Fluvanna, Franklin, Frederick, Giles, Gloucester, Goochland, Grayson, Greene, Greensville, Halifax, Hanover, Henrico, Henry, Highland, Isle of Wight, James City, King and Queen, King George, King William, Lancaster, Lee, Loudoun, Louisa, Lunenburg, Madison, Mathews, Mecklenburg, Middlesex, Montgomery, Nelson, New Kent, Northampton, Northumberland, Nottoway, Orange, Page, Patrick, Pittsylvania, Powhatan, Prince Edward, Prince George, Prince William, Pulaski, Rappahannock, Richmond, Roanoke, Rockbridge, Rockingham, Russell, Scott, Shenandoah, Smyth, Southampton, Spotsylvania, Stafford, Surry, Sussex, Tazewell, Warren, Washington, Westmoreland, Wise, Wythe, and York. Additionally, all independent cities are eligible, including Alexandria, Bedford, Bristol, Buena Vista, Charlottesville, Chesapeake, Colonial Heights, Covington, Danville, Emporia, Fairfax, Falls Church, Franklin, Fredericksburg, Galax, Hampton, Harrisonburg, Hopewell, Lexington, Lynchburg, Manassas, Manassas Park, Martinsville, Newport News, Norfolk, Norton, Petersburg, Poquoson, Portsmouth, Radford, Richmond, Roanoke, Salem, Staunton, Suffolk, Virginia Beach, Waynesboro, Williamsburg, and Winchester.

At American Life Fund, we understand the challenges that come with managing a life-threatening illness, especially in a busy and demanding place like Fairfax County. If you’re considering a viatical settlement, our team is here to assist you. We provide compassionate support, helping you understand viatical settlements. Our goal is to make sure you fully understand your options, allowing you to make informed decisions about your financial future in one of Virginia’s most populous and economically vibrant counties.

Residents of Prince William County facing a life-threatening illness can find necessary financial relief through viatical settlements. At American Life Fund, we offer personalized support to help you through this challenging time. Our experienced team simplifies the process, guaranteeing you are well-informed about your options and can make the best decisions for your financial health. In a rapidly growing and diverse community like Prince William, we are dedicated to providing the support you need.

In Loudoun County, known for its high quality of life and rapid growth, managing a serious illness can be particularly stressful. American Life Fund is here to provide you with the financial support you need through viatical settlements. Our team will guide you through the process, offering clear assistance. We aim to empower you with the knowledge and resources needed to make informed financial decisions during this difficult time.

For residents of Chesterfield County dealing with a terminal illness, viatical settlements offer important financial relief. At American Life Fund, we are committed to providing the support you need to navigate this complex process. Our knowledgeable team is dedicated to helping you understand your options, making sure you can make informed choices about your financial future. In Chesterfield’s growing community, we strive to make this challenging time more manageable for you and your loved ones.

In Henrico County, facing a life-threatening illness is made more manageable with the assistance of American Life Fund. We specialize in viatical settlements, offering support to residents in need. Our team will work closely with you to make sure you fully understand your options and can make the best decisions for your financial well-being. As a county rich in history and economic activity, Henrico residents can trust us to provide the necessary guidance during difficult times.

At American Life Fund, we recognize the challenges faced by residents of Arlington County dealing with serious illnesses. If you’re considering a viatical settlement, our experienced team is here to provide the support you need. We offer personalized guidance, helping you understand the entire process. Our goal is to make sure that you have all the information required to make informed financial decisions, allowing you to focus on what matters most in your life.

Insights for Viatical Settlements in Virginia

Virginia’s population reached approximately 8.75 million as of 2023, reflecting steady growth over the past few years. Of this population, around 16% are seniors aged 65 and older, who often face increasing healthcare needs and costs as they age​.

Regarding health, about 7.1% of Virginia’s population under the age of 65 live with a disability, and 9.2% are without health insurance. This highlights a significant portion of the population that might face medical and financial challenges without adequate coverage​​.

According to Genworth’s 2024 report, the average cost of assisted living in Virginia is $5,250 per month. These figures show the potential financial strains that individuals, particularly the elderly or those with severe health conditions, might face in Virginia​.

A study on the Prevalence and Medical Costs of Chronic Diseases Among Adult Medicaid Beneficiaries revealed that costs among beneficiaries with cancer were between $30,540 and $47,850 for the six months following diagnosis. Clearly, a monthly pension is not enough to handle everything​.

A viatical settlement could offer a necessary financial lifeline by providing a lump sum cash payment, allowing for better management of healthcare costs, living expenses, or even fulfilling personal goals during challenging times. This financial option can be particularly beneficial for those in Virginia who are struggling to cover the high costs of medical care and living expenses due to a life-threatening illness.

FAQ about Viatical Settlement in Virginia

In Virginia, individuals diagnosed with a life-threatening illness, generally 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 several factors, including the policy’s death benefit, your life expectancy, and the terms of your policy. Typically, the payout is higher than the policy’s cash surrender value but less than the death benefit.

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

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

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