The viatical settlement process can be complicated, especially if you’re not familiar with how it works. For some, it’s the smartest option available and for others, it can feel like a last resort. Before your loved one decides on a viatical settlement, it’s important to know how the process works and when it’s a good option.

Whether you need added funds to pay for medical bills or you have a family member that needs to sell off their life insurance policy for other reasons, here’s what you need to know about viatical settlements.

Viatical Settlement Basics

viatical settlement seems fairly simple from the outset: a policyholder chooses to sell their life insurance for financial relief. Typically, you’ll sell your life insurance policy through a viatical settlement company that will shop your policy around to different third party buyers. The process may look a bit different in various states but it commonly has a few key underlying causes.


For starters, most individuals in the United States who sell their life insurance often aren’t in good health. For individuals with terminal illnesses, like a cancer patient, selling an insurance policy from a licensed provider can help pay for medical expenses and medical treatments. Other individuals undergo life settlement transactions because they don’t have family members who will benefit from the policy after their departure. For those with a reduced life expectancy, selling their life insurance can provide additional financial freedom and give the individual financial options. Some look into a life settlement after a cancer diagnosis, if they’re a caregiver for an aging parent, or if they’re having a difficult time affording medications and monthly insurance premiums.

How the Process Works

From the outset, the process may seem quite simple. The policyholder who needs financial help goes through the application process and finds a viatical company with a brokers license. The company then looks for a third party buyer that will make the highest offer. Typically, this won’t mean selling the policy at face value but for a fraction of the premiums paid and the overall value. There are other times when disclosures prevent a broker from taking the highest offer but it’s an uncommon occurrence. The broker will also handle the details of the financial plan with the life insurance company to ensure that the finances are properly handled.


Afterward, the money gained from the sale is awarded as financial assistance to the seller. Over the course of your life, you probably never consider selling an insurance policy and it can be a stressful time if you or a loved one chooses to do so. That’s why it’s important to choose the right viatical company.

Finding a Viatical Settlement Company

If you’re struggling to navigate viatical settlement and life settlement regulations, you want to make sure that you’re in good hands. Sometimes, you need extra help navigating your health insurance and conducting the life policy sale with the insurance company. Businesses like the American Life Fund (found at have been helping individuals navigate their life insurance sales for years. Whether your loved one has a reduced life expectancy or you’re trying to help an aging parent, the American Life Fund can help. The American Life Fund offers lump-sum payouts that help individuals with financial assistance and end-of-life expenses.

Deciding on a financial settlement is a difficult decision for policyholders and their loved ones alike. While it can provide you with additional financing options, you need to weigh your needs carefully before you commit to a sale. By finding a savvy broker that has your best interests in mind, you’re more likely to conduct a successful sale and gain some added peace.