How Does a Viatical Settlement Work?Law
If you find yourself diagnosed with a terminal illness, it’s difficult to know where to even start when it comes to coping. While you’re fighting mental and physical health battles, you may also be struggling with financial worries. When you’re severely ill, you may be unable to work, which can cause some stress on your wallet. Rent or mortgage payments, utilities, medical bills, and hospital visits can all pile up when you can least cope with it. That’s why a viatical settlement may be for you.
What is a viatical settlement?
A viatical settlement is a financial dealing wherein someone who is in old age or has a terminal illness can sell their life insurance policies if they find they no longer need them. The viatical settlement companies can help you decide whether to sell your life insurance policy and will guide you through every step of the way. When you decide to sell your life insurance policy, you, the policy holder will receive a quick cash payout in exchange for transferring the ownership of the policy to a buyer. Then, when you die, the death benefit belongs to the person who bought your policy from you. This allows you to use the lump sum payout to keep up with your everyday expenses, or even undergo more medical treatments that could lengthen your life.
How do I know a viatical settlement is right for me?
A viatical settlement could be right for you if you’ve been diagnosed with a terminal illness or are elderly. Typically eligibility requirements for viatical settlements based on old age say that you should be at least 72 years old. You may want to seek a viatical settlement if you no longer need your life insurance, are behind on bills, or can no longer pay the premiums for your life insurance policy. Viatical settlement companies also often require that your life insurance policy be of a high value, over $100,000, to sell it. If you don’t fit any of the above criteria for obtaining a viatical settlement, you may want to reevaluate your options. However, if you’re still behind on your mortgage or need to pay back the bill to your family medical doctors, a viatical settlement could be just what you need. You may also be especially considerate of a viatical settlement if you don’t have anyone in mind to receive the death benefit from your policy.
How much can I expect to make from a viatical settlement?
The dollar amount of the payout for each viatical settlement or life insurance sale does vary from person to person. However, you can reasonably expect to make less than the death benefit value of your life insurance policy but more than the value you would receive were you to surrender the policy completely. This amount of money could be life-changing, because it can reduce stress or even allow you to invest more in your health, which could lengthen your life. The precious time you get to spend with friends and loved ones before you pass away is so vital, and having a cash payout from your defunct life insurance policy could be exactly what you need to increase the comfort and quality of your life. Especially if you’re nearing the end of life stages, comfort and mental energy are so important to your lifestyle. Around 77 percent of individuals who have been diagnosed with a terminal illness experience some type of depressive symptoms. You can cut down on your stress and depressive symptoms by having a bit more financial security, which gives you the freedom to do what you want in the final stages of your life.