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American Life Fund are insurance professionals who are licensed to negotiate a viatical settlement contract between a life insurance policyholder and a viatical provider (interested buyer). They represent the life insurance policyholder for a fee.

A viatical settlement is an agreement between a life insurance policyholder and a third party. The agreement is that the third party buys the insurance policy by paying a lump sum that is more than the policy value but less than the death benefit. Once this is agreed upon, the third party becomes the new policyholder who continues to pay future premiums until the insured person (the insurance policy seller) dies. After the death of the insured person, the third party receives the death benefits.

Working with a vertical settlement broker is important as they can enlighten you on the benefits and risks of vertical settlements. This blog post provides viatical settlement brokers' pros and cons below.


1. It Provides Access to Expertise

Using a viatical settlement broker provides you access to the expertise needed in your transaction. The broker guides both you, as the insurance policyholder, and a third party who is the policy buyer during the transaction.

2. It Allows Quick Access to Money

By working with a viatical settlement broker to achieve your viatical settlement transaction, you can quickly access the money you need.

3. It Provides Flexibility

By using viatical settlement brokers in your transaction, you can get the flexibility that comes with the viatical settlement. This flexibility refers to the freedom you enjoy to spend the lump sum received for any purpose of your choice.

4. It Allows Privacy

By using a viatical settlement broker in your viatical settlement transaction, you can keep transaction details confidential. There is no need to divulge the details of the transaction to the family, friends, or employer of the policyholder.


1. It Encourages Fraud

Due to the confidentiality of working with a viatical settlement broker, you may come across an impostor who is looking to take advantage of your vulnerability. This imposter may cause you to make irreversible mistakes during your viatical settlement transaction.

2. It is Risky

By buying a life insurance policy in a viatical settlement, you are taking a risk because you assume that the insured person will live long enough for you to make more than the money you have paid.

3. There is a Lack of Regulation

In some places, a viatical settlement is not permitted. This makes it difficult for life insurance policyholders to recognize genuine viatical settlement brokers.


Despite the demerits of working with viatical settlement brokers, it is safer to use them during a viatical settlement transaction. This is because they are licensed and experienced in negotiating matters of this sort.

The presence of viatical settlement brokers provides confidence to involved parties and signifies legal backing to the agreement. If there is a misunderstanding between the parties to the transaction in the future, the dispute can be resolved under the law.

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This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
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