Viatical settlements are a smart financial option for many. By selling your life insurance policy, you’re entitled to a lump sum cash payout, which helps with funeral expenses, medical bills, and other costly services. However, not everyone is eligible for a viatical settlement. Even if you’re deemed eligible, there are likely plenty of questions that come along with this commitment. If you’re considering this type of settlement, then keep reading to further understand how to find a broker and calm some of your concerns.
Understand your eligibility.
A viatical settlement is a valuable option for many life insurance policyholders. With this particular type of settlement, you must have a terminal illness or another grim medical outcome to qualify. Common medical outcomes that qualify include a cancer diagnosis, end-stage organ failures, and other chronic conditions. Generally, the shorter the life expectancy, the more value the investor will see in you. This is because they’ll receive the full death benefit of your policy sooner rather than later. If asked, you must prove your condition or life expectancy to a third-party broker so that you can fully commit to selling your policy.
Learn who will buy your policy.
Now that you’re more aware of your eligibility for a viatical settlement, you might be wondering: who exactly will buy your life insurance policy? When looking for a third party to sell your policy, consider American Life Fund. They offer to buy viatical settlements from the terminally ill. They’ll buy your insurance policy for more than its cash surrender value. However, this value must also be less than the net death benefit. This is because the third party, like American Life Fund, will continue to pay your monthly costs for the policy.
This way, when the original policyholder dies, the investor receives the entire net death benefit rather than the policyholder. Though this may seem like a morbid alternative to pursue, you have to remember that it’s a valuable option. Furthermore, having the cash payout at hand may make your daily life more financially comfortable leading up to the potentially more serious days that lie ahead. As with any legally binding choices, before opting for a viatical settlement, you should weigh out all of your options, and exercise with caution rather than blindly committing to an agreement.
Think about how to use your payout.
The lump sum cash payout that comes from a third party buying out your policy is an extremely valuable asset to leave to your family. By getting this cash while you’re still alive, you and your family will be able to more easily pay for things medical bills that commonly pile up for cancer patients. This lump sum can also contribute to paying off funeral services, living expenses, overdue bills, medications, and other end of life costs. Generally speaking, opting to sell your life insurance policy to a third party for a cash payout is a great way to stay proactive in your life. By choosing to go through with this transaction, you ensure that your family and other loved ones have peace of mind when it comes to their finances. Recognizing that all of your loved ones will be taken care of financially in these challenging times allows you, as the policyholder, to feel a sense of ease that’s unparalleled.
At the end of the day, if you’re a terminally ill patient, then a viatical settlement is an intelligent financial choice. By relying on a trustworthy third party to buy your life insurance policy, you’ll receive your lump sum payout with ease. From there, no matter where you decide to allocate the cash funds, you know that you’re financially preparing your loved ones regardless of any outcome.