Life & viatical settlements in Michigan

How life settlements work in Michigan

Life and viatical settlements in Michigan are regulated under MCL §500.3520. The Michigan Department of Insurance licenses both viatical providers and brokers, and requires written disclosures, a 15 days rescission period, and standardized contract forms.

For cancer patients in Michigan, the most common path is a viatical settlement under IRS §101(g), where proceeds are tax-free at the federal level if you’re certified as terminally or chronically ill. Michigan conforms to federal tax treatment for these settlements.

Medicaid impact in Michigan

Michigan’s Medicaid asset limit is currently $2,000 for individuals (2026). A lump-sum settlement that exceeds this limit can disqualify you from coverage. Specialized trust structures (special needs trusts, pooled trusts) can preserve eligibility but must be established before proceeds arrive.

This is the single most important planning step for Michigan patients receiving a settlement. We’ll connect you with a Michigan elder law attorney if you’d like guidance.

What’s different about Michigan

• Rescission period: 15 days from contract signing to change your mind
• Required disclosures: Buyers must provide written disclosures including alternatives (loan, surrender, ADB rider)
• Privacy: Medical and policy information is HIPAA-protected throughout
• Tax treatment: Michigan follows federal §101(g) for viatical proceeds

Major Michigan cities we serve

Statewide. Our licensed specialists work with policies throughout Michigan, with no in-person meetings required. Documentation, signatures, and notarization can all happen remotely.