A viatical settlement involves the sale of a life insurance policy by a terminally ill individual to a third-party buyer. In return for an upfront cash payment, the buyer takes ownership of the policy, pays the premiums, and receives the death benefit upon the insured’s passing. This arrangement provides financial flexibility when it’s needed most.

Terminal Illness: The policyholder has a terminal illness, often with a life expectancy of 24 months or less. Common conditions include cancer, advanced heart disease, ALS, or other life-limiting diagnoses.
Chronic Illness: The policyholder has a chronic illness that significantly impacts their quality of life and requires long-term care. For example:

• Unable to perform at least two activities of daily living (ADLs), such as bathing, dressing, or eating.
• Requiring substantial and ongoing medical care.

The payout from a viatical life settlement varies depending on factors like your age, health, policy type, premium costs, and the death benefit. While each case is unique, the average payout can be up to 30% of the policy’s face value and is almost always more than the surrender value.

Yes. Many individuals use the proceeds from a life settlement to cover healthcare, special medical treatments, long-term care, or healthcare expenses.  The cash from a life settlement can be used any way the policyholder chooses, including healthcare or investing, traveling, home improvements, helping family, etc.