Our Accelerated Death Benefits section goes into much more detail because this is a complicated, confusing issue with many variables. As always, it will be easier to call (888) 247-3659. What follows is an overview.
The Viatical Settlement requires a physician’s HIPAA-compliant letter stating that death is probable within 24 months or less. If the physician cannot sign the letter because the Insured appears likely to live longer than 24 months, this logically means the Accelerated Death Benefit (ADB) would not be available because it requires certification of likely death within 6 months, though some carriers will accept ADB Claims up to 12 months. The policy could still be sold, just not as a Viatical Settlement.
For purposes of this FAQ let us assume that the Insured’s physician agrees to sign the HIPAA 24 Month letter, and to certify likely death within the carrier’s ADB shorter timeline. The Policy Owner’s best strategy is to file an ADB Claim while simultaneously submitting the policy to us for quotes from every possible Program. This saves time whether the ADB Claim is approved or declined.
Further assuming the ADB is paid, the next question is whether to keep the reduced policy and continue paying premiums, or transact it and quit paying premiums. Depending on case specifics, the balance of the policy might receive bids for a Viatical Settlement, Private Policy Loan, Retained Benefit Life Settlement, or even a Long-Term Care Life Settlement.
Check out our Program Comparison page to review these options side-by-side.