At Abacus, our goal is to become your trusted source for information about viatical settlements. By providing you with up-to-date knowledge, we hope to help you understand more about viatical settlements and whether this option is right for you.
Get one step closer to learning the value of your policy today.
A viatical settlement is a specific type of life settlement designed for individuals diagnosed with a terminal illness. If the insured meets certain criteria confirmed by a medical professional, the IRS typically considers the transaction tax-free.
This legal option allows policyholders to sell their life insurance policy for a cash amount higher than the surrender value but less than the full death benefit.
In exchange for transferring ownership, the insured receives a lump-sum payment—often up to four times the policy’s cash surrender value.
Unlike a loan, a viatical settlement is a one-time transaction. The seller gives up all rights to the policy in return for a cash payout, which can be used entirely at their discretion. In some cases, the settlement may also take the form of a paid-up death benefit.
At Abacus, our goal is to become your trusted source for information about viatical settlements.
Get one step closer to learning the value of your policy today!
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Selling your life insurance policy to pay for medical needs is specifically for individuals suffering from a terminal illness. The transaction can typically be tax-free, so long as the insured meets specific criteria stated by a medical professional.
It is essentially the same as other life settlement options at its core. The significant caveat is that the insured is typically suffering from a terminal illness and has a life expectancy of fewer than two years.
$150,000 Policy | Abacus Offer: $90,000
Sam was recently diagnosed with stage 4 rectal cancer and needed funds immediately to assist with treatment. He had a term policy that had a face value of $150,000, and he was planning to surrender it so he could utilize those monthly payments towards his treatment. Instead, he discovered life settlements and reached out to Abacus.
After we reviewed his case, Abacus offered him $90,000, which helped him pay for the treatment plan he wanted to pursue.
$600,00 Policy | Abacus Offer: $390,000
Alyssa had a $600,000 permanent policy and was prepared to surrender the policy for a cash value of $2,500 from the life insurance carrier.
She was able to receive $390,000 for the policy, and the owner was able to use the proceeds to cover their medical costs because of Abacus.
To be eligible for a viatical settlement, the policyholder must be terminally ill or chronically ill with a life expectancy of fewer than two years.
Most types of policy types qualify for a viatical, including term life.
The average payout of a life insurance sale is 4-6 times the policy’s cash surrender value. At Abacus Life, we pay a policyholder an average of 6-8 times the cash surrender value of their life insurance policy.
Being a direct buyer, Abacus has created a streamlined process to make selling your policy fast while cutting out the middle man so we can pay you more.
For many individuals facing a terminal illness, a viatical sale can be a strong financial solution. You may be able to cover all or part of the costs involved in your medical care, including travel, stay, and your actual medical costs. Some of the most common reasons you may consider a viatical settlement include:
Depending on your policy terms, changes in the insurance market or poor policy performance could increase your premium payments. Additionally, unexpected financial challenges—such as rising medical bills, legal expenses, assisted living costs, or tax obligations—may further strain your budget.
Coping with a medical crisis while still worrying about medical bills works against palliative care and hospice goals. With healthcare costs continuing to rise, even those with excellent health insurance struggle to keep up with medical expenses. Viatical settlements can provide an inflow of funds that can be used to pay off bills or fund experimental/alternative treatments that may not be covered under insurance.
Patients and their families can receive funds to pay for medical care or quality of life experiences. We commonly see clients use their funds to tackle their “bucket lists.” However, many insured want to see their family enjoy their life insurance money now, rather than not being present to share their happiness.
If you are struggling with medical bills, having an issue keeping up with your premiums, or want immediate income, a viatical settlement could be right for you. However, we at Abacus advise that anyone considering a settlement take a close look at their life insurance and financial situation to make sure they make the correct choice for themselves and their family. If you do not have an immediate need for a lump sum of cash, we suggest not seeking a life settlement as, realistically, the greatest payout you can receive is the death benefit.
The Retained Benefit option means you would no longer pay any premiums and retain a portion of your benefit.
When the policy ends, beneficiaries will receive a guaranteed percentage, but you have no further obligations or payments to make.
The Traditional option is to sell your full life insurance policy for a cash amount above the policy’s surrender value.
You have no further obligations or claims to the policy, with all future premiums paid by the buyer.
The Hybrid option is a combination of two, where you would sell a portion of your life insurance policy.
With this option, you receive a cash payment now, your beneficiary receives a guaranteed percentage of the benefit when the policy ends, and you have no further obligation to pay future premiums.
Each case is specific, and there is no one-size-fits-all answer. We handle each case individually and with utmost confidentiality and sensitivity, as understanding your options will require knowledge of personal details:
To see exactly how much your policy is worth, we recommend you to get an estimate now using our calculator or contact us at 800-561-4148 to learn more.
This is the last step of the process and concludes the transaction. The insured is then free to use the money at their discretion.
The transaction is usually made tax-free by the IRS, as long as the insured meets certain criteria. A medical professional, usually a doctor, confirms the terminal diagnosis.
For more information on how life insurance proceeds are taxed, visit the IRS.
Over the past decade, the market has become incredibly well regulated. The entire life settlement market is regulated on a state-by-state basis instead of nationally. Therefore, the responsibility falls on each state’s government to make sure that companies are behaving ethically. The majority of states do require specific licensing and practice strict oversight to ensure customer safety. Here at Abacus Life, we are proud to share that we are licensed for life and viatical settlements in all states excluding Alaska.
To get started, you can fill out our free and instant Life Settlement Calculator.
Abacus will supply you with an initial, no obligation to sell offer within 24 hours of contacting us, assuming you qualify.
Abacus Life Settlements is a licensed life settlement company that takes a client-first approach.
We don’t believe that you should wait for the industry standard 45-60 days for life-saving treatment. A life settlement allows you to focus on what is most important right now.
© 2025 Abacus Life Settlements. Disclaimer: Abacus Life is not approved in all States. Abacus Life is a DBA of Abacus Settlements, LLC. Due to the inevitability of internet to enter States without intention, this website or any other correspondence does not constitute a solicitation for business in any particular State. This site is not intended for Louisiana, Texas, or Rhode Island residents. It is the responsibility of all intermediaries to follow the State laws and obtain any required licensure that corresponds to any particular financial or life settlement business in which they are engaging. Abacus Life will not accept business in States in which it is not licensed. The information contained in this site is not approved for or pertinent to Alaska or any other State in which Abacus is not licensed. We do not currently accept cases from AK. Copyright 2003-2025.