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Most people invest in a life insurance policy at some point in their lives. Life insurance is there to financially provide for your loved ones if something happens to you. But sometimes, people are put in situations in which they could use their life insurance money while they’re still alive. Someone who is terminally ill with a shortened life expectancy may need cash for things like medical expenses. Fortunately, a viatical settlement can give people a lump sum cash payment so they can pay for their medical needs. But what exactly does working with a viatical settlement provider mean?
What Is a Viatical Settlement?
When a life insurance policyholder decides they want a viatical settlement, they sell their life insurance policy for cash value. While the price of a settlement depends on the policy itself, the seller will get more than they paid for the policy but less than its actual face value. After the viatical settlement contract is signed, the buyer will get the policy payment once the seller passes away. So essentially, the seller will receive more money than they would if they were to cash in their policy and they can then use this money to pay for medical expenses and other needs while they have a terminal illness.
It’s important to note that viatical settlements are different than life settlements in that people don’t need to be sick or dying to qualify for a life settlement, but you do need to be terminally ill to work with a viatical settlement company. Additionally, unlike other life insurance policies or settlements, viatical settlements are not taxed.
Benefits of a Viatical Settlement
There are a few different reasons why someone may choose to sign a viatical settlement contract rather than let their life insurance policy be cashed once they’re gone. Healthcare is expensive, especially when you have a terminal or chronic illness — and with medical expenses piling up, it can be a great relief to have money to pay for them without worry. Not only does a viatical settlement give sellers money to use for medical and daily needs, but when someone sells their life insurance, they no longer have to worry about monthly payments either. And while a life insurance policy is designed to help beneficiaries, if someone doesn’t have kids or has beneficiaries who are financially stable, they can take a viatical settlement with peace of mind. All in all, working with a viatical settlement provider can give those who are terminally ill financial freedom and the ability to improve the quality of their life.
How to Choose a Viatical Settlement Provider
When looking at potential viatical settlement providers, you should look for companies that have experience with your condition or illness so they have the knowledge needed to check to see if you meet the necessary health criteria to qualify. Working with a company that has experience with your condition will make the process go much smoother. Additionally, you may want to pursue companies that directly provide settlements rather than working with a third party to get the best experience possible. And overall, you want a company that is going to show they actually care about you. Battling a terminal illness is no easy feat, and you want to work with a company that will be compassionate and sensitive to your situation.
Choosing a viatical settlement can be one of the best decisions someone with a terminal illness can make. With help from the right viatical settlement company, you can experience financial comfort so you can take care of your medical and daily expenses without worry.
