How to Sell Your Life Insurance for Cash if You're HIV-Positive

People with terminal illnesses can sell their life insurance for a portion of its face value through a process called viatication. The money you get can be used to catch up on bills, prepay final expenses or take a trip to the place you've always dreamed of - in other words, anything you want. Follow these steps to safely and effectively cash in on your life insurance while you can enjoy it.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Phone Directories

1. Understand that you won't get the full value of your policy - you could get as little as 20 percent or as much as 80 percent. In general, the sickest people obtain the highest percentage of face value.
2. Locate a viatical settlement broker. That's the company that will handle the arrangements for you. They often advertise in gay newspapers and magazines and are sometimes listed in phone directories.
3. Choose a reputable company, preferably one that a friend recommends. Companies in some states have been accused of illegal practices; in other states, companies may not even be fully regulated.
4. See if the company is a member of one of the two viatical trade associations. While membership in either the Viatical and Life Settlements Association of America (see viatical.org) or the National Viatical Association (at hivpositive.com) is no guarantee, it's an important item to check in making sure you're not dealing with a fly-by-night company.
5. Stay awhile on each of the trade association's sites and look at the information about the viatication process they offer.
6. Shop around. Different companies sometimes offer significantly different deals.
7. Pay the premiums on your life insurance until your broker tells you someone else is taking over. Otherwise, you could lose the coverage and be left empty-handed.
8. Keep your cool throughout the settlement process. And remember not to sign anything or accept anything you're told unless you fully understand it and agree with the terms and consequences.
9. Expect to wait a few weeks between the time you fill out the papers and the time you get your money.
10. Report anything you witness at a company that disturbs you. In some states, the Board of Insurance regulates the viatical industry.

Tips & Warnings

• Steer clear of any company that suggests you buy more insurance so you can have more to viaticate. If you follow that advice and don't tell the new insurance company about your HIV status, you and the broker may be engaging in "clean sheeting," an illegal practice.