Do You Qualify For A Viatical Settlement?
Viatical settlements can be very lucrative but not everyone can take advantage of them. Such settlements have some strict eligibility requirements to keep both buyers and sellers safe. These include:
- Value of the policy—You can only receive a viatical settlement if the total value of your life insurance policy exceeds $50,000. In many cases, policies under $100K in face value are not eligible.
- Policy in force for two years—You must have held your life insurance policy for more than the minimum amount of time specified in your state. Most states require you to hold it for two years, but some set the minimum as high as five years.
- Health impairments—To qualify for a viatical settlement, you must have been diagnosed with either a terminal disease or a chronic medical condition. Typically, your life expectancy cannot exceed two years. You may need to take a health exam to confirm this before completing the settlement.
Even if you do not qualify for a viatical settlement, you may still be able to sell your life insurance policy using a different kind of settlement. Depending on the reasons you do not qualify, however, other settlements may not provide as high a payoff as viaticals do. This is why it’s essential to determine whether you qualify for viatical settlements, as they may be your most promising option if you are committed to selling your policy.