What is a Viatical Settlement?

A viatical settlement is a financial transaction that allows you to sell an existing life insurance policy for a lump sum payment that exceeds the cash surrender value. This type of funding may be a viable option for individuals who are facing serious medical conditions or don’t want to burden their families with the financial costs of their demise.

Who Qualifies for a Viatical Settlement?

A viatical settlement is a financial transaction in which a lump sum cash payment is made to the owner of a life insurance policy in exchange for the sale of ownership and beneficiary rights to the life insurance policy. Typically, an individual needs to be diagnosed with a terminal or chronic illness in order to qualify for a viatical settlement. Additionally, most programs require that the policyholder’s life expectancy at the point of sale is two years or less. Policyholders must also be 18 years of age or older, and their existing policy may need to have been active for a certain amount of time before it can be sold for a viatical settlement.

Are Viatical Settlements Taxable?

For those insureds, the viatical settlement proceeds may be considered tax-free. The viatical settlement option allows life insurance policy owners to use the proceeds of the sale of their life insurance policy to help pay for medical bills, living expenses, or anything else they choose.

Viatical Settlement Regulation

Viatical settlements are regulated in most state jurisdictions by the Department of Insurance. Typically, viatical settlement laws fall under the same legislation as life settlements. Anyone presenting themselves as a viatical settlement broker or buyer must be properly licensed or authorized by the Department of Insurance in the home state of the policyholder.

What is a Viatical Settlement Broker?

Welcome Funds is a viatical settlement broker and we have been helping viatical settlement clients secure offers from the viatical market since 2000. We are authorized throughout the nation to represent life insurance policyholders as their viatical settlement broker. Our experienced team will work closely with the policyholder, their family, and financial advisors to ensure that the best price has been secured from the viatical settlement market. Welcome Funds will prepare all the appropriate documentation required to solicit official offers from viatical settlement providers. We then submit the files to our auction platform where these state-licensed viatical settlement funds compete to purchase viatical settlement policies. It's fast, easy, and free to determine if you or your loved one is eligible for a viatical settlement.

Viatical settlement