When facing a terminal illness, financial planning takes on new urgency. For many individuals, a viatical life settlement can provide critical access to funds by allowing them to sell their life insurance policy for cash. Below, we answer the most common questions about viatical settlements to help you understand your options and make an informed decision.

What is a viatical life settlement?

A viatical life settlement is the process of selling your existing life insurance policy to a third-party buyer for a lump sum cash payment. This option is designed specifically for policyholders diagnosed with a terminal illness, typically with a life expectancy of 24 months or less.

How is a viatical settlement different from a traditional life settlement?

Both allow you to cash out your life insurance policy, but the key difference is eligibility.

• Viatical settlements are for terminally ill individuals, that may be tax-free payouts under IRS guidelines.

• Life settlements are typically for seniors age 60+ who may be healthy or have longer life expectancies.

What health conditions qualify for a viatical life settlement?

Eligibility depends on your life expectancy, not just your diagnosis. Qualifying illnesses often include:

• Late-stage cancer

• ALS (Lou Gehrig’s disease)

• End-stage heart failure

• Advanced COPD (Chronic Obstructive Pulmonary Disease)

• End-stage renal (kidney) disease

• Liver failure or advanced liver disease

• Advanced dementia or Alzheimer’s disease

• Severe or progressive neurological disorders (e.g., Huntington’s disease, Parkinson’s with complications)

• HIV/AIDS with related complications

How much cash can I receive from a viatical life settlement?

The amount you receive depends on your policy’s face value, premium costs, and your life expectancy. Offers can range from 20% to 80% of the death benefit, depending on these factors. A viatical settlement often pays significantly more than the cash surrender value of the policy.

Is a viatical life settlement taxable?

In most cases, viatical settlements are not subject to federal income tax if the policyholder is terminally ill and the buyer is properly licensed. Always consult with your tax advisor for your specific situation. * LifeRoc does not provide tax advise, please seek the advice of a tax professional.

Can I still qualify if I have a term policy?

Yes—many term policies can qualify, especially if they are convertible to a permanent policy. Working with an experienced provider like LifeRoc can help you determine your eligibility.

What happens to my policy after I sell it in a viatical life settlement?

The buyer becomes the new owner and beneficiary. They take over premium payments, and they receive the death benefit when the insured passes away. You receive your lump sum upfront and are no longer responsible for premiums.

Why Choose LifeRoc for Your Viatical Life Settlement?

When it comes to selling your life insurance policy for cash, experience and access matter. LifeRoc is a leading life settlement company with a specialized viatical team, helping policyholders nationwide navigate this sensitive process with care, speed, and transparency.

With LifeRoc, you get:

• A free, no-obligation policy appraisal in 24 hours

• Access to the leading large network of funders who buy policies

• No third-party broker commissions

• Fast, competitive offers with exceptional service every step of the way

Ready to Find Out What Your Policy Is Worth?

If you’re exploring ways to cash out your life insurance policy due to illness, a viatical settlement may be the right path. The first step is knowing your policy’s value.

👉 Contact LifeRoc today for your free, detailed 24-hour appraisal and learn what your life insurance may be worth—so you can make the best decision for your future.