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Here at Abacus Life Settlements, our main priority is to educate our clients on all of their available financial options, helping them choose the best avenue for their specific situation. We want to make sure each client chooses the option that will best help them and their family, especially in some of life’s more critical instances.

When an individual is facing a severe illness or condition and is seeking financial assistance, they are more likely to seek out the viatical settlement option. At its core, it is fundamentally the same as the other available options, except a viatical settlement, by definition, is an arrangement in which someone who is terminally or chronically ill sells their life insurance policy at a discount from its face value for ready cash. In exchange for the cash, the seller of the life insurance policy relinquishes the right to leave the policy’s death benefit to a beneficiary of their choice. The buyer of a viatical settlement (Abacus Life) pays the seller a cash lump sum payout, and also covers all future premiums left on the insurance policy. The buyer becomes the sole beneficiary and cashes in the full amount of the policy when the original owner passes away.

To qualify for a viatical settlement, the insured has a life expectancy of two years or less. The transaction is usually made tax-free by the IRS, as long as the insured meets specific criteria stated by a medical professional. The origin of this type of settlement dates back to the late 1980s, when most of the individuals who sold their policies were facing cancer or AIDs. By the mid 1990s, the range for life insurance options had broadened and were now being considered for nearly every type of terminal illness. It is a safe, viable, and well-regulated option for insurance policies.

At Abacus Life, the proceeds from a viatical settlement are usually around 50% to 80% of the death benefit, depending on the life expectancy in the specific case. There are never any intermediary or broker fees by going directly to Abacus Life. We are proud to have the highest ranked position in the life settlement industry for having the largest client payout. We work each day to ensure that we offer competitive pricing, as it is our priority is to ensure that our clients get the largest possible cash lump sum payout. The regulations per state for viatical settlements are closely monitored and adhered to, as the rules very state to state; please check here to see if your state is authorized to conduct business with us at Abacus Life.

Typically, those individuals suffering from a terminal illness tend to use the funds received from a viatical settlement to help cover the costs of care, hospitals bills, or medical treatments needed to aid their condition. However, it is important to note that the funds received from a settlement can be used at the client’s discretion—there are no rules for how the payout is spent. If the client’s wish is to allocate their settlement payout to fund their grandchildren’s college, pay off any accumulated debt, or simply to treat themselves to a vacation, they are 100% entitled to do so. The money can be spent however they see fit—there are no strings attached or limits on usage.

If you or someone you know could benefit from a viatical settlement, feel free to reach out to us here at Abacus Life Settlements by calling 800-561-4148. We would be happy to walk you through the process and answer any questions you may have. When facing an illness, you should focus on healing—not your finances.

Blake Gallimore

Author Blake Gallimore

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