Viatical Settlements - Qualifications for Clients

Qualifying for a viatical settlement is a simple to understand. Basically to qualify there are two requirements that need to be met in order to receive a policy appraisal.

Key notes:

• ALL types of life insurance qualify, even term.
• Anyone can own the policy (I.E. family member, any kind of trust, company, or a charity)
• There are no medical exams required.

Requirement #1 : The life insurance policy must be owned for at least two years before it can be used in a viatical settlement. Reason: Insurance Companies put a two year contestability period on all life insurance policies. Any reputable funding source in the viatical industry will not purchase a policy in the contestability period.

Requirement #2 : The life insurance policy must have a face amount greater than $20,000. Meaning that when the insured passes the policy will have a death benefit payout of more than $20,000. There is no maximum face value that can be purchased. Reason: Viatical funding companies have pricing models fit around fixed returns on purchasing policies. Policies that are lower than $20,000 do not fit in this pricing model.

Requirement # 3 : The insured must have some type of life threatening illness. (I.E. Cancer, ALS, AIDS) Reason: The institutions that purchase these policies, buy them in portfolios of 10 million to 250 million dollars. When they make this initial payout the expect to have a return on their investment within a specified period of time. If the insured has no life threatening illnesses, then they cannot determine how many premiums they need to pay our have an estimate of when the policy will mature.

Now that you are familiar with what a viatical settlement is all about why not find out how Ideal can make this idea into a reality for you and your family. Learn about our viatical broker services and get started on your viatical settlement.


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