Viatical Settlements

QUALIFICATION REQUIREMENTS 

The qualifications for a viatical settlement transaction are based on 2 factors: the life insurance policy specifics and insured's health status.  The life insurance policy guidelines are straightforward and are provided below.  The health qualifications are a bit more complicated and are therefore explained in detail.

In order to save valuable time for the sellers (viators) and their agents, Welcome Funds underwrites each case in-house and also obtains an independent life expectancy review.  Once this process is completed, the life expectancy and insurance parameters are matched to the various requirements of our multiple funding sources.   By working with every funder, Welcome Funds has the ability to match each case to the best funding sources and ensure that all of our clients receive the highest possible settlements.

Below are summaries of the industry's standards of qualification for a Viatical Settlement.

VIATICAL SETTLEMENT - QUALIFICATION GUIDELINES
  1. Life Insurance:
  • Policy must be at least 2 years old - only non-contestable life insurance policies are considered.
  • Life Insurance Carrier must be rated B+ or better.
  • Minimum face value of $50,000 - NO MAXIMUM.  Lower face values are considered if multiple policies total over $50,000.
  • All types of policies qualify, including term, whole life, universal life, joint-survivorship, group, corporate-owned policies (COLI), key-man, and life policies held in irrevocable life insurance trusts.
  • Policy Owner may be the insured, a company, a family member, a charity or any other entity with an insurable interest in the life of the insured.
  1. Insured's Health Status:
  • Terminally-ill individuals with limited life expectancies of 7 years or less are considered.
  • Terminal illnesses may include cancers, heart disease, AIDS, Alzheimer's disease, ALS, or any other life threatening disease.
  • Complete copies of medical records are obtained for verification of health status.
  • NO MEDICAL EXAMS ARE REQUIRED!

Detailed Explanation of Health Guidelines:

Health qualifications for a viatical settlement are based upon the insured's life expectancy estimates.  Life expectancy is determined by independent reviews of the insured's medical records by third party medical underwriters and consultations with experts in the specific field of medicine as necessary.  The underwriters provide individual life expectancy opinions based upon statistical data combined with the insured's medical history.  These estimations can vary significantly due to differing opinions on treatments, prognosis and future medical advances.  Due to these factors, variances in offers made by Viatical Settlement Funders is very common.
 

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