What Is a Life Settlement?

Also known as a viatical settlement, a life settlement is the process of selling your life insurance policy to a State regulated company known as a life settlement provider. In exchange for this security, the company will then provide a cash payment that is typically 40 to 85 percent of the face value of the individual’s policy. At Cancer Funding, we work with policies as low as $50,000 in face value. Upon selling your policy, the company then pays the policy premiums. The company becomes the owner of your life insurance policy and the beneficiary of the the death benefit. To receive an instant estimate on your possible life settlement, complete our Policy Calculator.

Why Should I Sell My Life Insurance Policy?

Selling your life insurance policy is a reliable financial option to cover medical expenses and additional fees when experiencing treatments and other sources of care. When selling your policy, you’ll receive immediate cash in return to pay these expenses, decreasing the stress and worry that can often accompany these decisions. By law, you are the sole owner of your life insurance policy – Putting your policy in the hands of professionals ensures that your money is managed appropriately. By transferring your funds to experts, you release yourself from any further fees and responsibilities.¬†In addition, the the funds received from a viatical settlement are free from federal income tax, making this option both safe and cost effective.

Qualifying for a Life Settlement

To qualify for a life settlement, the patient must be terminally ill, the policy must have a face value of at least $50,000, and it must be a type of Universal Life, Whole Life, or Convertible Term Life. This criteria is necessary to make sure that your policy is a viable investment for the Life Settlement Providers. The value of your policy is influenced by several¬†factors, which often include your age, health history, and your policy’s value and associated costs. For a complete breakdown of this process, visit our guide on Our Process.

How to Sell Your Life Insurance Policy

The whole process should take no longer than two months. Once you choose a provider, the company will then ask you a series of questions about your background and policy and then return with an offer. When you accept the offer, you must transfer all ownership and responsibilities to the provider. The provider then takes responsibility for the premiums and sells the policy to an investor.

More Questions? Visit our FAQ’s or give us a call.