Who Qualifies For A Viatical Settlement?

A viatical settlement can offer immediate financial relief to people living with a serious illness, but not every policyholder will qualify.

Eligibility depends on two main factors: your health condition and your insurance policy. Windsor Life Settlements reviews both privately and without obligation, helping you understand whether your policy may be eligible and what it could be worth.

Health Qualifications

Viatical settlements are intended for individuals who have been diagnosed with a terminal or chronic illness.
A person is typically considered terminally ill when a physician certifies a life expectancy of twenty-four months or less. Those living with a chronic illness may also qualify if they are unable to perform basic daily activities such as bathing, eating, or dressing on their own, or if they require consistent long-term medical supervision.

These definitions come directly from Internal Revenue Code §101(g) and are recognized by most state insurance regulators. Policyholders who meet these criteria are generally eligible to sell their policy, though the value of the offer will depend on additional policy details.

Read more about viatical settlement taxation →

Policy Qualifications

Beyond your health status, the structure of your life insurance policy is equally important. Buyers look for policies that are active, transferable, and financially sustainable. Whole life and universal life policies are the most common candidates, though a convertible term policy can also qualify if it can be changed into a permanent policy before sale.

Most buyers prefer policies with a face value of at least $100,000, though larger policies often attract stronger competition and higher offers. The policy must be active—meaning premiums are current and coverage has not lapsed. If a lapse has occurred, Windsor may still be able to help you reinstate the policy prior to evaluation.

Premium levels also affect eligibility. Lower premiums make a policy more attractive because the buyer will take over those future payments. Policies with very high premiums, or those carrying large outstanding loans against the cash value, can still qualify but may generate lower offers.

When a Policy May Not Qualify

Certain policies fall outside the scope of the viatical marketplace. Group life insurance, for example, is often tied to employment and cannot be transferred once employment ends. Policies that have irrevocable beneficiaries who do not consent to the sale, or that are pledged as collateral on a loan that cannot be released, may also be ineligible.

That said, Windsor’s role is to explore every angle before ruling anything out. In some cases, reinstatement, policy conversion, or loan resolution can restore eligibility. Even if a viatical settlement is not an option, you may qualify for a life settlement, which allows seniors—typically age seventy-five or older—to sell their policy without a medical diagnosis requirement.

Learn the difference between viatical and life settlements.

Documentation and Review Process

Determining eligibility is a straightforward process.  Windsor will need a few documents:

• a copy of your life insurance policy
• a recent premium statement, and
• medical documentation confirming your diagnosis.

These materials are handled securely and shared only with underwriters who evaluate your case.  After reviewing your information, Windsor can begin the viatical settlement process.  We will provide a clear summary of what your policy may be worth and which institutional buyers are most likely to make competitive offers. Most evaluations can be completed within a few days, and you are under no obligation to proceed.

When You’re Unsure

Many policyholders contact us because they’re not certain whether their policy or health condition qualifies. That’s entirely normal. The viatical marketplace can be confusing, especially with so many companies advertising “instant cash offers” that rarely hold up under scrutiny.

Windsor’s role is to clarify—not to sell. We explain what qualifies, what doesn’t, and what you can expect if your policy moves forward to the offer stage. Whether or not you decide to sell, you’ll walk away with a clear understanding of your policy’s real value and your available options.

Next Steps

If you’ve been diagnosed with a serious illness and want to know whether your life insurance policy qualifies for a viatical settlement, Windsor Life Settlements can help. The review is confidential, free of charge, and completely without obligation.

Your policy could represent more value than you realize. Let us help you uncover it—privately, transparently, and at your own pace.