What is the Difference Between Viatical and Life Settlements?
A viatical settlement is for those that are terminally ill, and no longer need or want their life insurance policy. You may be eligible to sell your life policy for a lump sum cash payout via a viatical settlement. At MRE Finance, we can help you through this difficult time by assisting you in this process.
Selling a life insurance policy via a viatical settlement if you are terminally ill can be a smart financial decision in many situations, especially if you’re in dire financial need. This could be an excellent way to recover some or all the insurance premiums you’ve paid throughout your life and with the monies you receive you can pay for medical bills or anything else you choose.
However, before you make that final decision, you’ll need some guidance. The following information will provide you with everything you need to know about life settlements and viatical settlements.
MRE Finance is a widely respected company that assists individuals who are chronically or terminally ill and retirees who are interested in selling their life insurance policies. We can help you decide between a life settlement or a viatical settlement. Our team can also help find a buyer for your policy.
Life Settlements and Viatical Settlements Explained
An Introduction to Viatical Settlements:
A viatical settlement is an agreement in which the terminally ill insured person agrees to sell their life insurance policy for a lump sum payment. This is less than the face value, which is also known as the death benefit. Viatical settlements are typically used by people who have a chronic or terminal illness that has significantly reduced their life expectancy. Policy owners who qualify for a viatical settlement often sell their policies because they can’t afford the premiums while trying to pay for treatment at the same time.
The entity that purchases the coverage receives the death benefit after the seller has passed away. Viatical settlements can be advantageous for policyholders because they often fetch generous offers, providing the seller financial flexibility. There are certain benefits viatical settlements can offer:
- They can provide a significant portion of your death benefit if you have a pressing need for money.
- As the original policyholder, you will receive a one-time lump sum payment when the policy is sold; the one-time payment system maximizes your return on your life-long insurance investment.
- Viatical settlements can provide relief for the policyholder who is experiencing financial hardships.
An Introduction to Life Settlements:
A life settlement is a contractual agreement between a buyer and the owner of a life insurance policy. In exchange for a one-time cash payment, the buyer agrees to take ownership of the policy. The buyer will then receive the death benefit when the selling party passes on. Generally, policy owners who benefit from a life settlement are over the age of 70 and do not have chronic or life-threatening illnesses.
When a life insurance policy owner sells their policy to a buyer through a life settlement, they receive a one-time lump sum cash payment in exchange for:
- The death benefit transfers to the buyer
- Ownership of the policy goes to the new owner
- Any future cash value is allocated to the buyer
Life settlements are particularly attractive to people who are retired and in need of extra money. The life settlement process begins with a life insurance policy owner seeking out a company like MRE Finance to help them find a licensed buyer to purchase the policy.
MRE Finance can help the seller determine what their policy may be worth by providing a free estimate. Once they’ve found a buyer to purchase the policy, they can assist with the necessary paperwork. Our free online life settlement calculator can provide you with an estimated value of your life insurance policy within minutes.
What Are the Conditions of a Viatical Settlement?
In a viatical settlement, the criteria involved in selling your policy is based on whether you are terminally ill or chronically ill. The older you are when you sell your life insurance policy, the more you can expect to receive. For example, if you’re in your 70s and you’re in good health, you may qualify for a life settlement as opposed to a viatical settlement, in which case you will receive substantially less than a person who is chronically or terminally ill would receive through a viatical settlement.
However, if you’re in your 80s and you have significant health impairments, you will receive significantly more from a life settlement. This is because the total amount of premiums that an investor will have to pay on the policy is much lower than it would be if they had purchased coverage from someone who was expected to live much longer. In short, fewer years equal fewer premiums, and this is financially attractive to prospective buyers.
In addition to the amount of annual premiums, the health of the person selling the life insurance policy plays a major role in how much they can sell their policy for. Those with terminal illnesses should lean toward viatical settlements, while healthier individuals will need to explore life settlements.
What Does Selling a Life Insurance Policy Entail?
When you sell your life insurance policy, you will be giving up the death benefit payout and the cash value of the policy. The death benefit payout is the amount that your beneficiaries will receive if you die while the policy is still in force. The cash value is the amount that the policy owner can borrow against the policy. This depends on the type of life insurance policy.
Selling your life insurance policy can be a relatively quick and easy way to obtain funds. In many circumstances, it’s generally more beneficial to sell a life insurance policy rather than borrow money against it.
To sell your coverage, you will need to find a buyer and provide evidence of ownership of the policy. Once you have found a buyer, there will be some paperwork to complete before the sale can be finalized.
Before looking for a buyer, you should start thinking about whether you should sell your life insurance policy through a life settlement or a viatical settlement. Companies like MRE Finance can help you navigate the process and maximize your return on the sale.
Why Should I Sell My Life Insurance Policy?
The best way to determine if you should sell your life insurance policy is to simply look at the benefits of doing so. If you need the money from your life insurance policy to pay off debts or other financial obligations, then selling your life insurance policy is a quick and easy solution to get the cash you need in a pinch. The following are some financial reasons to sell your life policy via a viatical settlement if you need funds:
- Ensure the financial future of your children and grandchildren
- Pay off expensive medical bills or other expenses associated with your health care
- Pre-pay for all expenses that come with end-of-life planning
- Donate money to charities or organizations of your choice
- Pay off a mortgage or credit card bills
- Take the opportunity to check things off your personal bucket list
Of course, you might be wondering what other options may be open to you in order to get extra cash. For example, you may be able to take out a loan or sell other assets that you own. While you could take out a loan or sell off additional assets, it’s usually more advantageous to get a life settlement or a viatical settlement instead.
Is a Viatical or Life Settlement the Right Option for Me?
People who sell their life insurance policies generally fall into a certain category. They are typically people who no longer want their death benefit to go to their beneficiary, have a life insurance policy that’s about to expire, are retirees looking for extra cash, or people who have a terminal illness. Viatical settlements and life settlements are different options for selling your life insurance policy.
A viatical settlement is the sale of a policy where the insured has a terminal or life-threatening illness. A life settlement is the sale of a policy where the insured is generally over the age of 70 and may be in reasonably good health with some health impairments.
A viatical settlements is when the insured has an injury or an illness that reduces their life expectancy. It’s important to understand how they differ from life settlements so you can make an informed decision.
Do You Need to be Terminally Ill to Sell Your Life Insurance Policy?
While it’s true that a terminal illness will result in a shorter life expectancy and a potentially quicker sale for a larger amount, the insured person doesn’t have to be terminally ill to sell their life insurance policy. In fact, many people do so while they’re still healthy and simply want to make some additional money. If you are healthy, a life settlement is a definite option for you; however, if you are terminally ill, a viatical settlement is the better option.
MRE Finance can conduct a financial evaluation of the policy to determine the potential value of the policy. The potential value will depend on different factors, including:-
- the insured’s age
- face value
- type of policy
- the state you live in
- the amount of premiums
- ….and other risk factors
Click the button below to find out the estimate value of your life insurance policy within minutes.
If you’re interested in selling your life insurance policy, it’s important to understand the available options.
What is the Process To Sell My Life Insurance Policy?
The process of selling a life insurance policy starts with determining if you policy qualifies and getting an estimate of how much your policy may be worth. MRE Finance can help you with both these steps. Try our free life settlement calculator below to see if you are eligible to sell you policy and what it could be worth.
Having an estimate of what the policy is worth can help you know how much to expect when you get an offer. One of the biggest challenges many people have when selling a life insurance policy is understanding the process and the decisions they need to make along the way. If you’re not familiar with this, it can be difficult to know what to ask when you’re getting offers from potential buyers.
Before you begin asking the buyers any questions, it’s a good idea to get a firm understanding of how life and viatical settlements work.
How to Get the Highest Value Selling Your Life Insurance Policy?
Another reason to get help from experts to sell your life insurance policy is that you want to receive the most value from the sale. MRE Finance considers all the pieces involved in selling your policy. The offer you receive from a third-party buyer is based on these specific criteria. There are many factors that go into determining the price of a life insurance policy, including (but not limited to) the following:
- The length of time since you have owned the policy
- Your current health status
- The length of the coverage term
- The type of life insurance policy
- The face value (death benefit)
MRE Finance can help you determine what factors are likely to drive up the price of your policy and how to maximize the value. Try our free life settlement calculator below to see if you are eligible for a life settlement and see the potential value for your policy.
Why Has the Value of My Life Insurance Policy Changed Over Time?
The value of life insurance policies change over time based on the amount of premiums you’ve paid, your health, and other factors and, you may get different offers for your policy at different times. As you have discovered, if you’re selling your life insurance policy, you’ll need some help.
While viatical settlements are often worth more, you can still make a large sum of money from a life settlement, depending on your current situation.
When is the Best Time to Sell Your Life Policy?
The best time to sell your life insurance policy may depend on several factors. Most life insurance policies have a waiting period before the policy can be sold which is why most people sell their policies as seniors or retirees. Depending on each individual case, there are parameters and time frames which determine if you can do so. These also vary by the state that you live in and your health status.
Before you decide to sell your policy, you’ll want to understand the timing requirements and what they mean for the value of the policy at different points in time. Certain factors may have an influence on your decision, including the following:
- Current value of the policy
- How much it costs paying premiums to keep the policy
- How old you are
- Your health status
MRE Finance are Experts to Help Sell Your Life Insurance Policy!
If you’re serious about selling your life insurance policy, and you’re interested in a viatical settlement or life settlement, you’ll need some help. MRE Finance has a team of experts that can help you to;
- Complete the settlement process with ease
- Obtain financial peace of mind
- Settle all end-of-life financial obligations.
- Find a licensed buyer so you don’t have to
We can help you find out how much your policy is worth and find a buyer that will give you a fair offer. Our team will also guide you through all the steps necessary to complete your life or viatical settlement.
Want More Information About Life Settlements and Viatical Settlements?
If you’re thinking about selling your life insurance policy, you don’t have to do it alone. MRE Finance has a wealth of information on the website that can help you gain a deeper understanding of life and viatical settlements.
We have many resources to help you learn about the benefits of selling your life insurance policy. The more you learn about life settlements and viatical settlements, the more prepared you will be by the time you decide to sell your life policy.
Ready to Sell Your Life Insurance Policy?
Selling your policy is a big decision to make, and when you are ready to sell your life insurance policy for a viatical or life settlement, you want experts to help you to get the most value as possible.
MRE Finance pride ourselves on customer service, and we relish the opportunity to help many people move forward to financial freedom. Selling your life insurance policy may be the right move for you financially. Whether you qualify for a viatical settlement or a life settlement, the money you receive from the sale can help you start enjoying life in comfort and style or help you focus on your health.
Let MRE Finance guide you? Call us at 1-800-521-0770 and ask about the benefits of life settlements and viatical settlements today! Or click try our FREE settlement calculator to see if you qualify and what your policy could be worth.