With a viatical settlement, you can sell your policy for more than you can receive by surrendering your policy to the insurance company for its cash value. The amount you may receive depends on a number of factors, such as your life expectancy, prevailing interest rates, and the sum of the policy’s future premium payments.
To qualify, you can be any age, but must have a medical condition that affects your life expectancy.
First, remember that at no time is there any cost to you, and you may cancel the transaction at any time before you accept payment from a viatical settlement transaction.
Any type of life insurance policy can be considered for a life settlement, including term policies with no cash surrender value.
VSPI is not a financial planner, so we strongly recommend you work with your tax adviser to assess the policy’s tax basis and your settlement amount to determine what you may owe, since tax law is continually changing.
Read our Guide to Donating Your Life Insurance Policy to Charity if you are considering donating your policy to charity. Find out how the charity can receive the policy’s value today through a life settlement and avoid making any premium payments.
Read our Guide to Getting a Loan on Your Life Insurance Policy if you wish to retain ownership of the policy while using it as collateral for a cash advance now.